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...
Metcalfe’s Law states that the value of a communication network is proportional to the square of the number of users connected to it, represented by the formula N(N-1)/2, where N is the number of terminals (users). In other words, if there is only one cell phone in the world, it holds no value. The same applies to computers and software. Consequently, mobile communication service providers strive to distribute mobile phones to consumers, even going so far as to subsidize them. The value of language follows the same principle. However, the impact can vary significantly depending on who is connected to this network. If you are in the business of building networks, you must implement a strategy to quickly attract the most influential users to your network. Therefore, an entrepreneur must clearly and concisely define who their customers are and why they should engage with their network. - Joseph’s “just my thoughts”