One common myth about money is falling into the fairness trap with value relativity. When the quality of work is hard to judge, we tend to value those who work longer and harder more highly. This is a fairness trap. A novice locksmith might take a long time to open a locked door, while an experienced one can do it instantly. People often pay higher wages to novice locksmiths who have spent more time working. Even if the lock is damaged due to clumsy work and they are charged for replacement, people might still tip because the locksmith worked hard and did his best for a long time. When paying for something that’s difficult to evaluate, people care about fairness. But the real reason to call a locksmith is to avoid the embarrassing situation of being unable to enter the house quickly. I don’t know if this is true, but a woman once asked Picasso to draw her portrait, and he did it in 30 seconds. When she asked how much she should pay, Picasso said her $500. She complained that this was o...
Founded in 1991, the American craft beer company, New Belgium Brewing Company, is unique because its employees hold all the shares. Since 1996, the founding couples have distributed 10% of their shares to employees annually as incentives, and they have now completely transformed the company into an employee-owned entity. Currently, the founders hold no shares in the company. Furthermore, all employees receive financial training to enhance their management mindset. Training in financial statements, which includes everyone from minor clerks to executives, is standard practice for the company. Running a company without the ability to read financial statements is like signing a contract without understanding the terms. - Joseph’s “just my thoughts”