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Leverage

When you reach a Critical Mass of Reliable Systems, Capable People and Cash Flow the ship can sail itself through all weather.

The greater the leverage the less the mass required to become free to choose your destination.

The ability to amplify your output, income, or impact without corresponding increases in effort. The most successful people are not those who work the hardest but those who use leverage most effectively.

Mantra

We live in a time of infinite leverage - Naval

Multiply Force​

What are the most important forces to be capable of leveraging?

  • Stories
  • Labour
  • Capital
  • Technology
  • Products

Storytelling​

The most powerful form of leverage. Strong storytelling is foundational to the capability to generate leverage.

Sell stories that others want to take part in and retell and you are on the path to infinite leverage.

Labour​

Engineer systems to guide other people's/agent's time and energy to create a greater a surface area for achieving more.

AI and automation are replacing human labour. We need greater fluidity to capital formation to run experiments that discover innovative business models to unlock the full potential of humanity's time and attention.

Capital​

Use financial instruments to gain a financial advantage.

Capital formation is the process of building up the capital stock of a country through investing in productive plants and equipments.

Technology​

Using tools to amplify your output. In the AI and Blockchain age, the opportunity for borderless leverage is unprecedented.

Constantly invest in tools that provide maximum advantage.

Products​

Creating products, especially digital ones, that can be replicated at low marginal cost.

Accountability​

With great leverage comes great responsibility; being accountable for both the positive and negative outcomes of leveraged decisions is crucial.

Checklist​

Consideration checklist for gaining and applying leverage.

  • Permissionless: Use tools and platforms that don't require someone else's permission, like coding, writing, recording. Hyperstructures enable shared possession of a universal platform for creating and distributing value.
  • Compound Interest: The concept of compound interest, both in finance and in learning, is seen as a powerful form of leverage.
  • Judgement: Good judgment is critical when applying leverage, as leverage amplifies both gains and losses. Apply leverage based on solid understanding of risks of using established standards vs unproven innovation.
  • Timeframe: Decisions should be made considering their leveraged impact over the long term.
  • Knowledge: The power of continuous learning and self-education as forms of intellectual leverage.

Application​

Use borrowed capital for projects where sure profits are greater than the interest payable.