Read on Twitter
Working through @jackbutcher's Build Once Sell Twice.
I have hundreds of takeaways, but one idea is burnt into my grey matter.
Equity and dividends.
[Thread]
I have hundreds of takeaways, but one idea is burnt into my grey matter.
Equity and dividends.
[Thread]
It's easy to measure relative success by looking at dollars flowing in.
More dollars in and we think we must be on the right track.
But dollars in is a lagging indicator, not a leading indicator.
More dollars in and we think we must be on the right track.
But dollars in is a lagging indicator, not a leading indicator.
Cash compensation is the last step in a long process of building equity.
It's an extraction of dividends from the equity we've built up in the past.
This equity comes in the form of:
• Experience
• Credibility
• Connections
• Reputation
And this equity compounds quickly.
It's an extraction of dividends from the equity we've built up in the past.
This equity comes in the form of:
• Experience
• Credibility
• Connections
• Reputation
And this equity compounds quickly.
But this equity is hard to see.
There's no objective "measure" of experience, credibility, etc.
But dollars are objective.
So in gauging a project or opportunity, we underweight the "compensation" of experience, credibility, and connections, and overweight the dollar amount.
There's no objective "measure" of experience, credibility, etc.
But dollars are objective.
So in gauging a project or opportunity, we underweight the "compensation" of experience, credibility, and connections, and overweight the dollar amount.
But this is short-sited.
Experience, credibility, connections, and reputation compound much faster than dollars compound.
But by extracting dividends (cash) too early, we interrupt a much more powerful compounding.
Experience, credibility, connections, and reputation compound much faster than dollars compound.
But by extracting dividends (cash) too early, we interrupt a much more powerful compounding.
This is way easier said than done.
Thinking this way - prioritizing experience, credibility, connections, and reputation - is 21st-century arbitrage.
Since others struggle to see this, it's a market inefficiency.
Exploit that inefficiency.
Thinking this way - prioritizing experience, credibility, connections, and reputation - is 21st-century arbitrage.
Since others struggle to see this, it's a market inefficiency.
Exploit that inefficiency.
I'm working on a larger thread with more of my takeaways, but I just had to share this one.
Because now that I've seen it, I can't unsee it.
Everything on Jack's website is 10% off until Friday.
It's the best investment I've made in 2020. https://shop.visualizevalue.com/
Because now that I've seen it, I can't unsee it.
Everything on Jack's website is 10% off until Friday.
It's the best investment I've made in 2020. https://shop.visualizevalue.com/
