Credit Rating and Required Rate of Return: Suppose you and Warren Buffett borrow money from a bank. The bank will assess your credit ratings differently. Maybe the bank could offer Warren Buffett a loan without interest since it can be advertised as a bank used by the renowned investor. However, it will likely charge you interest because you have a lower credit rating and less fame than Warren Buffett. The interest rate each borrower faces, based on their creditworthiness, is called the required rate of return for creditors. Under the same conditions, the cost of poverty is much higher for the poor than for the rich. Poverty inherently involves costs. - Joseph’s “just my thoughts”
In some cases, the outcome completes the intention to act. Although it wasn’t the original intention, it is a situation where the result of the action appears positively, and even the intention is glorified. Of course, the opposite can also occur. If the result of an action taken with good intentions is negative, those good intentions become a target for blame. It would be ideal if the intention and the result aligned, but that isn’t always the case. There are numerous instances where it is challenging to interpret this world full of deception and changes of heart with naivety alone. Yet, reality is shaped by the accumulation of results. If you achieve good results despite having bad intentions, it is considered luck. Skills cannot overcome luck. - Joseph’s “just my thoughts”