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...
Tesla earns revenue through car sales, but its real profits come from other sources. Although Hyundai-Kia Motors sells more cars annually than Tesla, it does not have the same profit structure, which is unique to Tesla. Tesla capitalizes on environmental assets by selling carbon credits each year. While the company experiences overall losses in car sales, the sale of these carbon credits results in surplus income, positively affecting its stock price. Traditional automakers contribute to Tesla’s profitability by purchasing cars and paying fines for carbon emissions. This dynamic is also a key reason why Tesla establishes operations in regions with strict pollution regulations. - Joseph’s “just my thoughts”