Credit Rating and Required Rate of Return: Suppose you and Warren Buffett borrow money from a bank. The bank will assess your credit ratings differently. Maybe the bank could offer Warren Buffett a loan without interest since it can be advertised as a bank used by the renowned investor. However, it will likely charge you interest because you have a lower credit rating and less fame than Warren Buffett. The interest rate each borrower faces, based on their creditworthiness, is called the required rate of return for creditors. Under the same conditions, the cost of poverty is much higher for the poor than for the rich. Poverty inherently involves costs. - Joseph’s “just my thoughts”
Wise people don’t need managing, foolish people are unnecessary to manage, those who love you don’t require managing, and those who don’t love you aren’t worth managing. This is why I need to be more of ‘me’ rather than trying to conform to others; it also explains why the world is more likely to function properly if I take good care of myself. It doesn’t mean you have to live selfishly, but it does mean you’d better accept altruistic selfishness . - Joseph’s “just my thoughts”