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.
We live in a time of infinite leverage
Forces
Strong storytelling is key to creating leverage. Sell stories that others want to retell.
- Labour: Utilizing other people's (agent's) time and effort to achieve more.
- Capital: Using money to gain a financial advantage.
- Products: Creating products, especially digital ones, that can be replicated at low marginal cost.
Labour
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 Formation
Capital formation is the process of building up the capital stock of a country through investing in productive plants and equipments.
Checklist
Consideration checklist for gaining and applying leverage.
Permissionless
Leveraging 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.
Accountability
With great leverage comes great responsibility; being accountable for both the positive and negative outcomes of leveraged decisions is crucial.
AI & Digital
In the digital age, the opportunity for leverage is unprecedented, especially with the internet allowing for global reach and impact.
- use a tool to maximum advantage.
- use borrowed capital for a project where profits are greater than the interest payable.