Walt Disney gained worldwide fame with the animated film ‘Steamboat Willie,’ but Disney’s first studio went bankrupt. By the mid-1930s, he had produced over 400 animations, most of which suffered heavy losses. In 1938, Snow White and the Seven Dwarfs made $8 million in just the first half—more than ten times the earnings of other films. Meanwhile, with this animation, the company paid overdue wages to its employees and recovered the losses it had sustained. An unusual event that changes everything is called a “tail event.” 40% of publicly listed companies in the U.S. stock market lose nearly all their market capitalization 10 years after going public. Business and investing, after all, are based on probabilities. No one knows what the “tail event” will be. Therefore, to succeed, you need to try small, steady, many times with little impact, even if you fail. - Joseph’s “just my thoughts”
One of the purposes of commerce is to build strength. Gaining wealth gives us power , which is the ability to influence others. There are three main types of power: first, power gained through coercion or threats; second, power obtained through payment or inducement; and third, power gained through attraction. The power obtained through coercion, threats, payment, or inducement—that is, force or tactics—is called ‘hard power,’ while the power gained through ‘attraction’ without using force is called ‘soft power.’ Additionally, the ability to effectively achieve your goals using coercion, payment, and attraction is known as ‘smart power.’ Depending on the situation, we may need all three types; however, soft power is something that everyone admires. - Joseph’s “just my thoughts”