Robinson Crusoe Economics

Sunday, August 30, 2020 Francisco 0 Comments

The way to get A is not to strive for A directly. Invest in some tools, take some steps around to strive for A later. Go to college and make nothing to gain more later.


I believe Amazon did exactly that, they invested in process, machines, systems instead of going for profits immediately.


From Seeking Alpha, 

Brenda Jubin

The Dao of Capital: Austrian Investing In A Distorted World by Mark Spitznagel (Wiley, 2013) is a beautifully crafted book, one I can recommend to readers of all political/economic persuasions. Yes, Ron Paul wrote the foreword and the book will undoubtedly appeal to Fed bashers, but its main line of reasoning transcends ideological divides.

Spitznagel advocates a roundabout (shi, Umweg) approach to investing, which involves "waiting and preparing now in order to gain a greater advantage later." (p. 3) Admittedly, waiting and preparing can be, and usually is, a painful process. Think of Robinson Crusoe who sacrificed time that could have been spent catching fish by hand or with a crude spear in order to build a simple boat and a fishing net. He went hungry for weeks in order to position himself for a larger catch later on. "This is Umweg: Crusoe ultimately catches more fish by first catching fewer fish, by focusing his efforts in the immediate toward indirect means, not ends." 


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