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...
Online sales surpassed offline sales as a result of the global pandemic. Nowadays, people are purchasing signals instead of tangible items. The online environment is a web of signals. If the signal presented by the interface is not trustworthy, purchasing is not possible. For a long time, stocks have been traded based on signals that represent rights without requiring physical stock certificates. The same principle applies to gold. The challenge arises because both the tangible item and the signal react based on their value, but human greed leads to an oversupply of signals. This happens because creating a signal is much simpler than producing the actual item. The fundamental issue is that the signal serves as a representation of the tangible item. When there are more signals than tangible items, this discrepancy is termed a “bubble.” In offline contexts, signals are known as “cash.” Essentially, money is just a signal, and “trust” is crucial for believing in that signal. - Joseph’s “j...