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Showing posts with the label inefficiency

Just my thoughts #0396

Warren Buffett, who has amassed 99% of his wealth since the age of 50, revealed that the secret lies in “compound.” When you lend money, interest is added to the principal as income. Initially, interest is applied only to the principal, but compound interest is applied to both the principal and the accumulated interest. Therefore, at first, it seems negligible, but over time, significant wealth growth takes place. The same principle applies to reading: even if your reading speed is slow, consistently reading just a few books each day can lead to a wealth of knowledge. After a year, this accumulated knowledge creates a network effect, allowing you to quickly absorb new information. Consequently, your reading speed increases dramatically, leading to an exponential growth in the volume of material you can handle. This exemplifies the compound interest effect. Even small, consistent actions taken daily can build up and create a compound interest effect over time. Cartoonist Lee Hyun-se sta...

Just my thoughts #0364

The essence of money is ‘credit.’ When individuals with no credit possess a significant amount of money, they use it less efficiently than those with credit who have the same sum. This inefficiency incurs additional costs, resulting in lower profitability compared to someone who is trusted. In our world, even an equal amount of money is influenced by credit. The most fundamental step in establishing credit is to honor your verbal commitments. Individuals who do not fulfill their verbal promises tend to experience slower growth or may even fail, regardless of having an equivalent amount of money. - Joseph’s “just my thoughts”

Just my thoughts #0250

Trust acts as glue, binding individuals’ needs, while money operates like a magnet; when distance is introduced, it attracts unwanted elements. Essentially, trust enhances efficiency, whereas money, in the absence of trust, leads to avoidable expenses. When money substitutes for what trust should fulfill, inefficiency and waste significantly increase. - Joseph’s “just my thoughts”

Just my thoughts #0126

Being busy is not always a good thing. It can indicate integrity and activity but also result from inefficiencies. Beware of busy people. A person's essence can be judged based on their response to cognitive dissonance, not outward appearance. - Joseph’s “just my thoughts”

Just my thoughts #0011

On the economic front, a relationship that believes in each other is much more beneficial than an untrustworthy relationship. Disbelief results in inefficiency and leads to increased costs. Nevertheless, most of us choose to be distrustful because our experiences of loss from betraying after we have trusted someone are clearly visible and the benefits of cost savings by trusting someone are invisible. My attitude toward the world determines my actions, in our distorted experience, we regret and conflict daily. Even though we know it's a loss, we continue to cling to our foolish choices. - Joseph’s "just my thoughts"