process
Seek Leverage
The rule
Leverage means one small effort grows big. Like a code you write once that works for you every morning, even while you sleep.
Where it flips
The word 'leverage' gets used to excuse bets made with borrowed money. That is the one kind that can turn a small loss into total ruin. The fix: keep the good leverage (code, content, your own money) apart from debt. Treat borrowing to invest as danger, not as being brave.
Leverage means one choice you make gives a big result. There are four kinds. People who work for you. Money you put to work. Software that runs on its own. And content that reaches many people at once. The last two need no one's yes, and cost almost nothing to copy. So they are the fairest kind for a normal person. In investing, the safe leverage is your own money growing slowly, and knowledge you share. It is not a loan to buy shares, which can turn a small dip into a big loss.
A worked example
Aarvi does not borrow to trade. Instead she writes a small script that checks 500 companies every morning. So one hour of her thinking now works across the whole market. That is leverage without any debt. [illustrative]
How to spot it
- ·one choice that grows across many results
- ·code or content that keeps working after you stop
- ·warning sign: the plan works only if you borrow
Naval Ravikant · The Almanack of Naval Ravikant