Capital

A powerful form of leverage
Is capital
Is capital
Is capital
A powerful form of leverage
Is capital
Is capital
Is capital
And this one’s a little less hardwired into us because large amounts of money
moving around and being saved and being invested in money markets,
these are inventions of human beings in the last few hundred, to a few
thousand years
They’re not evolved with us from hundreds of thousands of years
So we understand them a littl bit less well
They probably rquire more intelligence to use correctly and the ways in which
we use them keep changing
The management skills from a hundred years ago might still apply today,
but investing in the stock market skills from a hundred years ago probably
don’t apply to the same level today
So capital is a trickier form of leverage to use, it’s more modern
It’s the one that people have used to get fabulously wealthy in the last century
It’s probably been the dominant form of leverage in the last century
And you can see this by who are the richest people
It’s bankers, politicians, and corrupt countries who print money,
essentially people who move large amounts of money around
And if you look at the top of very large companies, outside of technology
companies, many, many large, old companies, the CEO job is really a financial
job
They’re really financial asset managers
Deep down I think we all dislike capital as a form of leverage because it feels
unfair
Because it’s this invisible thing that can be accumulated and passed across
generations and suddenly seems to result in people having gargantuan amounts of
money with nobody else around them or necessarily sharing in it
A powerful form of leverage
Is capital
Is capital
Is capital
A powerful form of leverage
Is capital
Is capital
Is capital
That’s like capital is a powerful form of leverage, it can be converted to labor
It can be converted to other things
It’s very surgical, very analytical
If you are a brilliant investor and give a billion dollars, you can make 80%
return with it whereas anybody else can only make a 20% return
You’re gonna get all the money and you’re gonna get paid very handsomely for it
It scales very very well, if you get good at managing capital, you can manage
more and more capital much more easily can manage more and more people
So it is a good form of leverage but the hard part of capital is how do you
obtain it?
And that’s why I talked about specific knowledge and accountability first
If you have specific knowledge in a domain and if you’re accountable and you
have a good name in that domain, then people are going to give you capital as a
form of leverage that you can use to then go get more capital
A powerful form of leverage
Is capital
Is capital
Is capital
A powerful form of leverage
Is capital
Is capital
Is capital