The Naval Podcast – Labor and Capital Are Older Forms of Leverage

Check out Naval’s Episode Page & Show Notes

This podcast clip is part of a conversation between Naval Ravikant (@naval) and Babak Nivi (@nivi). Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.

Key Takeaways

  • “Give me a lever long enough, and a place to stand, and I will move the Earth” – Archimedes
    • “Fortunes require leverage. Business leverage comes from capital, people, and products with no marginal cost of replication.”
  • Labor is the oldest form of leverage
    • Ex. – Having X amount of people work under you
    • But society overvalues labor as a form of leverage – why?
      • Mainly – managing other people is messy and requires tons of leadership skills
    • Aim to instead have the minimum amount of people working for you which will allow you to use the other forms of leverage (below)
  • Capital is a more preferable, and probably the most powerful, form of leverage
    • But how do you obtain capital?
      • “If you have specific knowledge in a domain, are accountable, and have a good name in that domain – people are going to give you capital as a form of leverage which you can use to then go get more capital”

These notes were edited by RoRoPa Editing Services