Building vs. Betting

Building vs. Betting

Over long periods of time, building and betting can both be positive-sum games.

You can build something people want (companies, products, services), or you can bet on the continued demand for something you didn't build yourself (investing).

Everything is a question of allocation.

Allow me to oversimplify:

You have two primary resources, energy and capital.

If you are energy rich, you can take a swing at building something that doesn't exist. If it doesn't work, you're rewarded with experience. If it does, you're rewarded with capital.

If you are capital rich, you can bet on people who are energy rich to build something that doesn't exist. If it doesn't work, you're rewarded with experience. If it does, you're rewarded with capital.

Building vs. Betting by Visualize Value

Art history has witnessed a series of exponential leaps, not just in the production of art but, more significantly, in the reach that each new medium or technological innovation has enabled.
Leverage is as much about where you are standing as how much force you are applying.

If you are building something, it is far more useful to focus on the work you are doing to produce the result than the result itself.