551 | What Elephants Can Teach You About Property Growth
Jun 19, 2025
Dive into the intriguing connections between biology and property growth! Discover how scaling laws govern cities like living organisms, enhancing efficiency and value. Learn the 15% rule that explains why big cities thrive economically. Explore the difference between hype-driven growth and science-backed development. Hear about the significance of long-term investment strategies that align with urban scaling patterns. Plus, uncover the essence of procrastination and its impact on decision-making in property investing!
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insights INSIGHT
Scaling Laws Link Biology and Cities
Scaling laws explain predictable growth patterns from biology to cities, impacting property values.
Bigger cities become more efficient and productive per person, driving higher land values and innovation.
insights INSIGHT
Cities Grow Smart and Fast
Cities' infrastructure grows sublinearly, needing less resources per person as they grow.
Human interactions scale superlinearly, accelerating ideas, wealth, and opportunities faster than population growth.
insights INSIGHT
Superlinear Growth in Cities
When a city's population doubles, wealth and wages grow about 15% faster than linear growth.
This creates superlinear economic output, making bigger cities more valuable and productive per person.
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Risk-Averse Value Investing Strategies for the Thoughtful Investor
Seth Klarman
In 'Margin of Safety', Seth Klarman discusses his views on value investing, drawing from the concepts of Benjamin Graham and David Dodd. The book critiques speculative investing and institutional investing practices, advocating for a disciplined and risk-averse approach. Klarman emphasizes the importance of understanding the intrinsic value of investments, avoiding false precision in valuations, and maintaining a margin of safety to mitigate potential losses. The book is divided into sections that cover the philosophy of value investing, the critique of institutional investing, and practical strategies for determining value and managing portfolios.
Charlie Munger once said that reading widely is the key to wisdom, and in this episode, we’re channelling that spirit. 📚
What do elephants, electricity grids, and economic growth have in common? 🐘⚡
They’re all governed by scaling laws — and today, we’re diving into the groundbreaking work of Professor Geoffrey West to show you how biology, cities, and even companies follow predictable mathematical patterns as they grow.
And here’s the twist: when cities grow, they don’t just get bigger — they get smarter, more efficient, and more valuable per person.
You’ll learn: 📈 What scaling laws are and why they matter to property investors 📈 The 15% rule: why incomes, innovation, and land values rise faster in big cities 📈 The critical difference between growth driven by hype… and growth backed by science 📈 How to identify “superorganism” cities where value compounds over time
PLUS: We reveal why long-term investors should align their strategy with urban scaling patterns — not short-term sentiment — if they want to build long-term wealth. Listen now!
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The Property Couch 