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Leverage

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.

tip

We live in a time of infinite leverage

Context

Forces

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.