Archimedes: Give me a long enough lever and a fulcrum, and I can move the Earth.
Naval: To obtain wealth, one must fully utilize the leverage effect.
Leverage is a multiplier.
Combining what Naval said and personal experience, I currently believe that leverage can be divided into the following four categories:
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Capital
Capital refers to money, which can be obtained from:- Financial capital
- Financing: demonstrate expertise and a sense of responsibility, show good judgment
- ...
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Labor leverage
Labor leverage is about having others work for you, the oldest and most fiercely contested form of leverage. Having this will make others envy you, but do not excessively pursue labor leverage.
Tips: Both capital and labor leverage require permission to use. Everyone is pursuing capital, but someone must be willing to invest. Everyone wants to lead others, but someone must be willing to follow.
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Replicating products with zero marginal cost
Product categories include:- Code
- Media (creating videos, recording podcasts)
- Writing books
- Writing blogs
Code and media are levers that can be used without permission. These two levers are behind the new rich. Create levers or media that work for you while you sleep.
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Time leverage
- Robots
- AI assistants
- Outsourcing (if it is below your self-determined hourly wage)
How to take action and accumulate wealth:
- Find your talents.
- Continuously learn.
- Apply your expertise.
- Improve judgment (cognition).
- Utilize the leverage effect.