The Power of Leverage

less than 1m read

·Nov 3, 2024

Last piece of making money is you have to have leverage. Leverage is critical. Leverage, you know, Archimedes famously said, “give me a lever long enough and a place to stand, and I will move the Earth." That was a very powerful statement where he was basically saying it's the power of leverage.

Humans are not evolved to understand leverage. Our evolutionary past maps inputs to outputs; it's a one-to-one ratio. So, for example, if I'm chopping trees and I'm like harvesting wood to go start a fire, then basically if I put in, you know, 8 hours chopping wood, that's probably going to get me eight times the output that I would get from 1 hour of chopping wood.

Whereas with leverage, you know, I might have bulldozers or chainsaws, or I might have lumberjacks working with me. If I make the right decision on how to cut down the wood, how to store it, and how to ship it and transport it, I get a multiplier effect. It's very important to understand the different kinds of leverage that are available.

Because if you want to make money, you need that specific knowledge, you need that accountability, and now you're going to need to use whichever form of leverage best applies to your situation.

Yoda Lingo 101 | StarTalk

Office Hours with Adora Cheung

View All

Have you LOST Your Self-Confidence? 6 POWERFUL TIPS | STOICISM

[Music] Believing in yourself is more than just a feeling; it’s a special skill, a deep way of thinking about life. One clear fact about learning about yourself is this: how much you achieve depends a lot on how confident you are in yourself. Not believin…

Time on a number line example

We’re told to look at the following number line, and this number line we actually have times on it, so you could even call it a timeline. We’re starting at one o’clock here. Then we go to 1:15, 1:30, 1:45, then 2 o’clock. It says, “What time is shown on t…

15 Predictions for 2024

If you could see slightly into the future, what would you do with that information? Every successful person tries to peek into the future to figure out how to use it to their advantage. Those who are able to do it to see how the world will eventually look…

A Baby Golden Snub-Nosed Monkey | Hidden Kingdoms of China

NARRATOR: Thousands of feet higher up, in an altogether different type of forest, there lives another very special creature that is also unique to China. The golden snub-nosed monkey only lives here in the high mountain forests of central China. [music pl…

Labor and Capital Are Old Leverage

So why don’t we talk a little bit about leverage? The first tweet in the storm was a famous quote from Archimedes, which was: “Give me a lever long enough and a place to stand, and I will move the earth.” The next tweet was: “Fortunes require leverage.” …

A capacitor integrates current

So now I have my two capacitor equations; the two forms of the equation. One is I in terms of V, and the other is V in terms of I. We’re going to basically look at this equation here and do a little exercise with it to see how it works. I’m going to draw…

The Power of Leverage

More Articles