Compared to the era of a self-sufficient barter economy, everyone’s happiness is greater in the exchange economy, where each person divides their labor into what they do best and exchanges what they produce. This is because the division of labor is more efficient than self-sufficiency in productivity and can further reduce production costs. At this point, a means of exchange agreed upon by society is required, which is called money (currency). In other words, in the exchange economy, specialists who excel in one field are more advantageous for survival than ordinary people. An all-round player is more likely to face starvation. Therefore, a generalist is only advantageous for survival when they can organically integrate their diverse abilities in a specific field or situation, while also managing and restricting the scope of their activities and conditions. - Joseph’s “just my thoughts”
Warren Buffett, who has amassed 99% of his wealth since the age of 50, revealed that the secret lies in “compound.” When you lend money, interest is added to the principal as income. Initially, interest is applied only to the principal, but compound interest is applied to both the principal and the accumulated interest. Therefore, at first, it seems negligible, but over time, significant wealth growth takes place. The same principle applies to reading: even if your reading speed is slow, consistently reading just a few books each day can lead to a wealth of knowledge. After a year, this accumulated knowledge creates a network effect, allowing you to quickly absorb new information. Consequently, your reading speed increases dramatically, leading to an exponential growth in the volume of material you can handle. This exemplifies the compound interest effect. Even small, consistent actions taken daily can build up and create a compound interest effect over time. Cartoonist Lee Hyun-se sta...