What do you get when you combine ignorance and money ?



" Give me a lever long enough and a fulcrum on which to place it, and I shall move the world. "

—Archimedes—

A lever is a simple machine consisting of a beam or rigid rod pivoted at a fixed hinge or fulcrum.

Simple machine that essentially consists of a bar that rests or can rotate on a point (fulcrum) and is designed to overcome a force (resistance) by applying another force (power).

It is one of the six simple machines identified by Renaissance scientists, along with the wheel and axle, force multipliers, inclined plane, pulley, screw and wedge.

A lever can be used to maximize the mechanical force applied to an object, increase its speed or the distance it travels, through the application of a proportionally smaller amount of force.

Depending on the proximity or distance of the fulcrum from the body to be moved, more or less applied force will be required and a greater or lesser effect will be achieved.



There are three types of lever, depending on the relative position of the resistance point, the power point and the fulcrum. Each one has different characteristics and will have a relatively different effect.

First degree lever: The fulcrum is between power and resistance, achieving that the applied power can be much less than the resistance to overcome, that is, it maximizes power. However, the transmitted speed and the distance traveled by the body are sacrificed.

Second degree lever: The resistance is between the power and the fulcrum, so the power will always be less than the resistance, even if it does not achieve greater displacement or distance traveled (but saving energy is extremely useful).

Third degree lever: The power exerted is between the fulcrum, at one extreme, and the resistance, at the other. The applied force is greater than the resulting one, but it is possible to extend the transmitted speed or the distance traveled by the body.


When you combine ignorance and leverage, you get some pretty interesting results.

—Warren Buffett—


This model applies to virtually all areas of life, such as within the financial field, where debt allows you to leverage to buy an asset. Leverage can apply also to the social field, where you can
leverage your friends and the environment, to carry out group activities like sports.

At this point, the Internet should be highlighted, since, among other models such as compound interest and the network effect, it enhances leverage.

The Internet allows easy replication and distribution of work that would just need to be carried out once and then leveraged thousands of times.
Examples would be music, podcasts, blogs, books, computer programs, applications, etc.

Examples that take advantage of the other commented models are available on the Internet, such as compound interest and the network
effect.









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