Akimbo: A Podcast from Seth Godin Leverage and gearing (E)
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Dec 25, 2024 Discover the power and pitfalls of leverage through personal stories and real estate insights. Explore how leveraging assets can build wealth but also pose risks to sustainability. Delve into the impact of creative destruction, and learn how to adapt in a rapidly changing economy. Plus, uncover the complexities of starting a business with friends, from profit sharing to planning for smooth exits. It's a rich discussion on resilience and strategic decision-making.
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Bongo Board Incident
- As a child, Seth Godin broke his wrist when his sister jumped on a bongo board, demonstrating leverage's power.
- This exemplifies how a small force can have a large impact, much like financial leverage.
Leverage's Cultural Impact
- Leverage allows for greater power exertion but has increasingly shaped our culture in recent centuries.
- Borrowing money, though requiring interest payments, offers potentially higher returns than using personal savings.
Pin-Making Machine Example
- In the 1890s, pin-making machines offered significant productivity gains compared to manual labor.
- This enabled manufacturers to use leverage, borrowing money to buy machines that quickly paid for themselves.