Three Leverage Types

A framework for understanding the three main types of leverage that can be used to scale businesses and create impact.

Three Types of Leverage

• Human Capital Leverage

  • Having other people do work for you
  • Example: Running a company but not writing daily emails/content
  • Allows scaling beyond personal time limitations

• Media Leverage

  • Content that multiplies impact beyond time invested
  • Example: 1 hour podcast being listened to for thousands of hours
  • Amplifies reach and influence without additional effort

• Financial Capital Leverage

  • Using money to influence and create change
  • Two main purposes:
    • Maximizing financial returns
    • Influencing world in desired direction
  • Allows allocation of "units of energy" to companies/causes

Key Insights on Financial Capital

• Not recommended when:

  • Having very little capital to start with
  • Returns won't meaningfully change your life
  • Money gets locked up without significant impact

• Better alternatives for small capital:

  • Investing in yourself
  • Buying back your time
  • Taking entrepreneurial "shots on goal"

Philosophical Framework on Investing

• Builder vs Allocator Mentality

  • Builders create direct value
  • Allocators optimize existing value
  • Building generally more fulfilling than pure financial arbitrage

• Life Stage Considerations

  • 20s focused on ego/achievement
  • 30s shift toward meaning/soul
  • Need to balance financial success with meaningful impact

• Warning Signs of Over-Focus on Financial Games

  • Getting caught in "financial arbitrage circle jerks"
  • Pursuing purely mechanical investment decisions
  • Losing sight of real-world impact and meaning