Origins of Physics
Physics was invented before chemistry. In fact Isaac Newton, the guy who wrote the very first book on physics is why we call non-quantum physics Newtonian physics.
Isaac Newton was a proponent of alchemy. Today alchemy is usually thought of as a kind of magic to turn dirt into gold or turn iron in the gold but back before they understood chemistry, alchemy was the predecessor to chemistry. The word alchemy is related to the word chemistry. Isaac Newton was also interested in alchemy.
He was interested in it as a form of science just like he was interested in physics.
Prime Directive Of All Business
Every single company has one main goal and that is to get a positive ROI. ROI stands for return on investment. Every single business is an attempt to spend money and use that money to buy raw materials and then reform those raw materials and a higher order goods.
If you can spend, for example, $1000 on everything, including the raw materials the labor the electricity the advertising the overhead and you turn around and sell those higher-order goods for $1500 you’ve made a profit of $500 that’s a positive ROI at 50%.
On the other hand if you spend $1000 and you try to make something and you hire people you spend money on electricity and overhead and everything and you only get back $500, you’ve spent $1000 to make $500 which means you’re down 500 bucks or you have a negative ROI of 50%.
Buy Low Sell High
Investors also hope to have the best ROI. If you buy a stock for $100 and you sell that stock a year later for $150 that’s a 50% increase or 50% ROI. One of the things that venture capitalists do as they invest in companies. If you’re venture capitalist and you invest $1 million in a company you hope to get back more than $1 million. That’s the only reason that a venture capitalist would ever invest in any company.
They have a positive idea, they have a positive expectation they’re going to get back more out of the system than they put in. The problem in today’s economy is, is that many venture capitalists today are investing in companies but they don’t really care of the company itself actually makes a profit or not.
It’s very likely for a venture capitalist today to make money by investing in a company that will never ever even make a product. The reason this is possible is because of something called the greater fool theory.
Monkey Banana ROI
If you think about ancient animals evolving on planet Earth, you can imagine two different types of animals. One animal would look out into the world and see a piece of food and they would have this kind of strange genetic programming that would say spend up to 1000 calories of energy to get that food and hope for the best. If they spent 1000 calories of energy to get food that was only worth 500 calories that would be a -500 calorie loss. That will be a loss of 500 cal or a negative ROI, a negative calorie ROI of 50%.
On the other hand you can imagine a bunch of animals that had some kind of an intuition of which pieces of food represented positive calorie ROI, and which pieces of food didn’t, if you can imagine a monkey sitting at the bottom of the tree and the monkey would look up and see a banana and the monkey would have some type of intuition to know whether or not it was worth getting that banana or not.
If the banana had 300 calories and the monkey could climb up and down the tree and only spend 200 calories, then that banana would represent a net gain of 100 calories. On the other hand, if a monkey looked up the tree and saw banana that was 200 calories, but he kind of guessed that it might take 500 calories to climb up and get the banana that banana would represent a net loss of 300 calories.
The rational decision on the monkey’s part would be to not go after that banana. All humans, all animals have this deep genetic programming to maximize ROI. To look out into the world and ask ourselves, “How can I maximize my return while minimizing my effort?”
This comes across in every single thing we do. If you are on a job interview you want to convince them to pay you as much money as you can get them to while promising them the least amount of work. If you’re the guy doing the hiring, you want to get that you want to be able to pay the candidate the least amount of money possible while convincing them to do the most amount of work.
If you’re buying a an item that is allowed to have negotiations you will want to get the cheapest price possible, whereas the guy selling it wants to get the highest price possible. When it comes to looking out into the world and trying to maximize your ROI, there are really two basic things that will help you increase your ability to maximize your ROI.
Increase Your Skills
That is the number of skills you have and the long view. How long your view is. The number of skills you have and how long your view is. If you have very few skills and you have a very short-term view under which you measure ROI, it’s going to be very easy for people to manipulate and exploit you.
On the other hand, if you have a large number of skills a large number of highly refined skills and you have a very long view, it’s going to be much easier for you to maximize your ROI over the long term. No matter what you do for living, what you do for fun, consider the idea that increasing your skills and increasing your view, the time period under which you attempt to maximize your ROI, those two things will always help you.
The problem with the greater fool theory with these venture capitalists is they’ll invest $1 million in the company and all they really need to do is create a whole bunch of buzz for that company. If they buy a company, if they invest in the company for $1 million and they can turn around and sell that investment to another venture capitalist for $2 million.
Double Your Money
That’s a 100% return on their investment. They don’t care if that company will eventually go bankrupt. They don’t care if that company will ever actually make any products. They don’t care that company eventually has to fire all their employees.
It turns out that most venture capitalists have this added to this greater fool theory. This idea that if I buy this company all I need to do is find somebody that’s a greater fool than me to buy it for a higher price than I paid for it. It turns out that most companies in the world today are either being inflated by these venture capitalists who are playing the greater fool game or they’re being completely inflated by debt.
Once you involve debt into the situation, you don’t really ever have to worry about getting a positive ROI. If you’re a company that is not allowed to use debt you have to get a positive ROI. You have to get more back than you must otherwise you go out of business.
Debt Hides Inefficiencies
On the other hand, if you keep borrowing money, if you keep increasing your debt, you don’t really ever need to worry about getting a positive ROI. It turns out that most companies today are not existing because they continuously create positive ROI.
Most companies today exist because they keep borrowing more and more money to cover up the fact that they’re not making any profits whatsoever.
If you think about the history of science starting with Isaac Newton when he wrote the first book on physics, a lot of scientific discoveries were driven by business people that were looking for cheaper and more efficient ways to turn lower goods into higher-order goods with which they can make a profit.
Always Driven For Profits
A lot of the greatest discoveries of the Enlightenment were driven by people that were looking for ways to increase their profitability. While it does seem silly to think about using alchemy to take up rock and hopefully turn it into a piece of gold, before they understood anything about chemistry that was actually legitimate question.
If you have a pound of metal a pound of iron that’s worth $1000 and you think if I can turn this pound of iron into a pound of gold that’s worth hundred thousand dollars, if I can figure out a way to do that that’s less than $99,000 I can make a profit.
This is a legitimate question before anyone ever understood chemistry. If I can put any kind of energy or money into a system and get back out more that I put in, then that is a profitable endeavor. That’s what’s been driving science and all business since the dawn of time.
Mind Persuasion has plenty of books and courses to teach you how to speak hypnotically and persuasively.