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Small Brain: The Three Prime Assets

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Summary

This article discusses the three prime assets of humans: effort/skill, time, and stored value. It explains how humans are constantly exchanging effort and time for value, and how time is valuable due to its limited nature. It also discusses how money functions to store value and how human preferences for spending time can change the value of an object or experience. Lastly, the article explains that taking risks can be valuable, as it can lead to more value-accretive opportunities.

Q&As

What are the three prime assets for humans?
The three prime assets for humans are effort/skill, time, and stored value.

How do humans assign value to their time?
Humans assign value to their time based on the manner and environment in which they experience its passing, a subjective assignment of value.

What is the function of money?
The function of money is to store value because it is easy to exchange for assigned value.

How is the value of a skill determined?
The value of a skill is determined by supply and demand; how much demand there is relative to the supply of that skill.

How does risk-taking increase value-accretive potential?
Risk-taking increases value-accretive potential by creating a risk premium; those who go to school for the skill have fewer competitors and are able to charge a premium for their time.

AI Comments

👍 This article is an incredibly insightful and thought-provoking read. It dives deep into the fundamentals of how markets work, and provides a great mental framework for understanding how to think about them.

👎 This article is too long and contains too much unnecessary detail. It could have effectively explained the same concept in much fewer words.

AI Discussion

Me: It's about the three prime assets: effort/skill, time, and stored value. It talks about how these three things make up the human equation and how they are all related. It also goes into how money is only as useful as how much it can be exchanged for, and how skill is a lever to exchange less time for more money.

Friend: Interesting! It's definitely an interesting perspective. What do you think the implications of this article are?

Me: Well, I think it's a reminder of the value of our time, effort, and stored value. We should be mindful of how we're exchanging them and how they can help us get closer to our goals. It also provides a framework for thinking about markets, and how to profit from them. Finally, it's a reminder that risk-taking can be a valuable service, and that comfort should not be taken for granted.

Action items

Research the concept of risk premium and how it affects markets.
Develop a framework for understanding markets and how to profit from them.
Experiment with different ways to assign value to risk and measure the results.

Technical terms

E=MC²: This is the famous equation developed by Albert Einstein that states that energy (E) is equal to the mass (m) of an object times the speed of light (c) squared.
Laws of thermodynamics: These are the four laws of thermodynamics that describe the behavior of energy and matter in a closed system.
Non-fungible: This refers to something that is not interchangeable or exchangeable for something else of equal value.
Liquid markets: These are markets where assets can be easily bought and sold without any significant restrictions.
Fickle: This means to be unpredictable or changeable in one's opinions or loyalties.
Delusion: This is an erroneous belief or impression that is held despite evidence to the contrary.
Lever: This is a tool or device used to increase the force applied to an object.
Supply and demand: This is an economic concept that states that the price of a good or service is determined by the amount of supply and the amount of demand for that good or service.
Risk premium: This is the extra return that an investor receives for taking on additional risk.