Creating Wealth

knowledge economyUnderstanding, recognizing, and accepting the limit imposed by their genetic weaknesses is the beginning of wisdom for all organizations.  The secret of success is finding places to employs one’s resources where those weaknesses are irrelevant

(Lester Thurow, Creating Wealth, The New Rules For Individuals, Companies and Countries In A Knowledge-Based Economy, Nicholas Brealey Publishing, 2000, p 60)

No one has ever become vey rich by saving their money. The rich see opportunities to work and invest in situations where large disequilibriums exist.  This was true for John D Rockefeeler as it is for Bill Gates.  In both cases their lifetime savings constitute a small fraction of their total wealth. Carefully saving one’s money and investing in normal equilibrium situations can one comfortable in one’s old age but never really wealthy.

(Lester Thurow, Creating Wealth, The New Rules For Individuals, Companies and Countries In A Knowledge-Based Economy, Nicholas Brealey Publishing, 2000, p 22)

Successful businesses must be willing to cannibalize themselves to save themselves.  They must be willing to destroy the old while it is still successful if they wish to build the new before it is successful. If they won’t destroy themselves, others will destroy them.”

(Lester Thurow, Creating Wealth, The New Rules For Individuals, Companies and Countries In A Knowledge-Based Economy, Nicholas Brealey Publishing, 2000, p 32)

Businesses that would grow rapidly with high profit margins must take advantage of technological disequilibriums, or create sociological disequilibriums.  All other activities are slow-growth, low-rate-of-return commodity businesses.”

(Lester Thurow, Creating Wealth, The New Rules For Individuals, Companies and Countries In A Knowledge-Based Economy, Nicholas Brealey Publishing, 2000, p 32)

 

 

 

 

Posted in Reflexive Mode, Wisdom Generator.