We are now living in an age of nearly infinite leverage
Nearly infinite leverage
Nearly infinite leverage
We are now living in an age of nearly infinite leverage
And all the great fortunes, they're created through leverage
So your first job, obtain leverage
You can obtain leverage, through permission, take taking risks, getting people to work for you, or by raising capital or you can get leverage permissionlessly by learning how to code or becoming a good communicator, podcasting, broadcasting, creating videos, writing, et cetera, et cetera, et cetera
And that's how you get leverage
That's how you get leverage
But once you have leverage, what do you do with it?
Well, the first part of your career's spent hustling to get leverage
Hustling to get leverage
Once you have the leverage then you wanna slow down a bit
Because your judgment really matters
It's like you've gone from steering your sailboat around to now you're steering an ocean liner or a tanker
You have a lot more at risk but you have a lot more to gain as well
Nearly infinite leverage
Nearly infinite leverage
We are now living in an age of nearly infinite leverage
And all the great fortunes, they're created through leverage
So your first job, obtain leverage
You can obtain leverage, through permission, take taking risks, getting people to work for you, or by raising capital or you can get leverage permissionlessly by learning how to code or becoming a good communicator, podcasting, broadcasting, creating videos, writing, et cetera, et cetera, et cetera
And that's how you get leverage
That's how you get leverage
But once you have leverage, what do you do with it?
Well, the first part of your career's spent hustling to get leverage
Hustling to get leverage
Once you have the leverage then you wanna slow down a bit
Because your judgment really matters
It's like you've gone from steering your sailboat around to now you're steering an ocean liner or a tanker
You have a lot more at risk but you have a lot more to gain as well
Network effects, network effects
Free leverage
[Chorus]
Network effects, network effects, network effects
Free leverage
Network effects, network effects, network effects
Free leverage
Bob Metcalfe, who created Ethernet famously coined Metcalfe's Law, which is the value of a network is proportional to the square of the number of nodes in the network
(Nodes in the network)
(Nodes in the network)
Free leverage
[Chorus]
Network effects, network effects, network effects
Free leverage
Network effects, network effects, network effects
Free leverage
Bob Metcalfe, who created Ethernet famously coined Metcalfe's Law, which is the value of a network is proportional to the square of the number of nodes in the network
(Nodes in the network)
(Nodes in the network)
I think of all the forms of leverage, the best one in modern society and people are gonna, this is glib, this is overused, and this is why I tell people, learn to code
We have this idea that in the future, there's gonna be these robots and they're gonna be doing everything
And that may be true
But I would say the majority of the robot revolution has already happened
The robots are already here and there are way more robots than there are humans
It's just that we packed them in data centers for heat and efficiency reasons
Put them in servers, they're inside the computers
And all the circuits, the robot mind inside that's doing all the work
And so every great software developer, for example, now has an army of robots working for him at nighttime while he or she sleeps
We have this idea that in the future, there's gonna be these robots and they're gonna be doing everything
And that may be true
But I would say the majority of the robot revolution has already happened
The robots are already here and there are way more robots than there are humans
It's just that we packed them in data centers for heat and efficiency reasons
Put them in servers, they're inside the computers
And all the circuits, the robot mind inside that's doing all the work
And so every great software developer, for example, now has an army of robots working for him at nighttime while he or she sleeps
The most interesting and the most important form of leverage is this idea of products that have no marginal cost of replication
This is the new form of leverage
This is only invented in the last few hundred years
It got started with the printing press
It accelerated with broadcast media and now it's really blown up with the internet and with code
So now you can multiply your efforts without having to involve other humans and without needing money from other humans
This song is a form of leverage
This album is a form of leverage
Not long ago, I would have had to sit in a lecture hall and lecture each of you personally and I would have maybe reached a few hundred people and that would have been that
30 years ago, I would have to be lucky to get on TV which is somebody else's leverage
This is the new form of leverage
This is only invented in the last few hundred years
It got started with the printing press
It accelerated with broadcast media and now it's really blown up with the internet and with code
So now you can multiply your efforts without having to involve other humans and without needing money from other humans
This song is a form of leverage
This album is a form of leverage
Not long ago, I would have had to sit in a lecture hall and lecture each of you personally and I would have maybe reached a few hundred people and that would have been that
30 years ago, I would have to be lucky to get on TV which is somebody else's leverage
[Chorus]
A powerful form of leverage
Is capital
Is capital
Is capital
A powerful form of leverage
Is capital
Is capital
Is capital
And this one's a little less hardwired into us because large amounts of money moving around and being saved and being invested in money markets, these are inventions of human beings in the last few hundred, to a few thousand years
They're not evolved with us from hundreds of thousands of years
So we understand them a little bit less well
A powerful form of leverage
Is capital
Is capital
Is capital
A powerful form of leverage
Is capital
Is capital
Is capital
And this one's a little less hardwired into us because large amounts of money moving around and being saved and being invested in money markets, these are inventions of human beings in the last few hundred, to a few thousand years
They're not evolved with us from hundreds of thousands of years
So we understand them a little bit less well