Wednesday, November 18, 2020

Counted and Contained

One of the most important lessons in the world of money is that “Price is not Value”.

We half wish that it was, because of a love for scorecards and a way of measuring progress. If you can measure something, you can control it. People partly love big salaries because it is a conspicuous sign that you are making it in the world. Unfortunately, all a big salary means is that there is an undersupply of the thing that you are providing. Or there are significant barriers to entry. Or there is a lack of transparency. There is a container that creates the ability to earn more, but it is not value. There are lots of valuable things that are abundant. A high price is just an indication of scarcity.

Not everything that counts can be counted and contained. Not all good ideas are good business ideas. Not all good business ideas are good ideas.


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