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.

How I Use My Following For Investment Deals | Ft. Josh Richards & Griffin Johnson

2005 Entrepreneurship Conference - Taking on the Challenge: Jeffrey Bezos, Amazon

View All

Apollo: Missions to the Moon – Trailer | National Geographic

[music playing] INTERVIEWER 1: Would you like to live on the moon? WOMAN: Yes, I would. INTERVIEWER 1: You would? You’d like to be one of the first people to go? WOMAN: Yes. MAN 1: We have one of the most challenging assignments that has ever been gi…

Derivatives of inverse functions: from table | AP Calculus AB | Khan Academy

Let G and H be inverse functions. So let’s just remind ourselves what it means for them to be inverse functions. That means that if I have two sets of numbers, so let’s say one set right over there, that’s another set right over there. If we view that fir…

What's in Peanut Butter? | Ingredients With George Zaidan (Episode 7)

What’s in here? What does it do, and can I make it from scratch? Ingredients for the purposes of peanut butter: peanuts are just peanut oil and then all the stuff in here that is not peanut oil. So, things like sugars, starches, and proteins. When you bl…

Fourier series coefficients for cosine terms

So we’ve been spending some time now thinking about the idea of a Fourier series, taking a periodic function and representing it as the sum of weighted cosines and sines. Some of you might say, “Well, how is this constant weighted cosine or sine?” Well, y…

Symmetry of second partial derivatives

So in the last couple videos I talked about partial derivatives of multivariable functions, and here I want to talk about second partial derivatives. So, I’m going to write some kind of multivariable function. Let’s say it’s, um, I don’t know, sin of x * …

Wait, so is the U.S. in a Recession?

GDP, gross domestic product, explained by the Bureau of Economic Analysis, is a comprehensive measure of U.S. economic activity. Now, you might have heard GDP pop up in the news lately because in America, their GDP is currently shrinking. In Q1, U.S. GDP …

The Power of Leverage

More Articles