20/07/2025
Many supposed pundits talk about poverty or financial hardship out of a suspicious mindset of 'superior. morality' These pundits might do better to fight those social ills by leveraging other mindsets, ones where we learn to acknowledge that being wealthier isn't always about injustice or "zero sum games". Wealth naturally creates further wealth if people learn how to wisely share and distribute it.
From Farnam Street Sunday newsletter:
" Charlie Munger once asked me: ‘How can someone give away fifty percent of profits and make billions more than if he’d kept it all?’ Before I could answer, he told me about Les Schwab, a tire shop owner who understood incentives better than almost anyone.
What Schwab discovered will change how you think about business and life.
Here are a few of his lessons:
1. Win Win, The Math of Generosity: Les discovered that splitting profits 50/50 with store managers didn’t cut his wealth in half, it multiplied it. His reasoning was pure math: “If I share half the profits, I still have half. And if Frank makes more money, he’ll work harder to make the store successful. If the store is more successful, my half is worth more than my whole used to be.” You get rich by making others rich. (...) "