Wednesday, June 23, 2004

Love and Capital

by Asim Jalis

There is a deep connection between passion and capital. Love is a capital good, not in a metaphorical sense but in a very concrete and real sense. It's like a factory or an assembly line. Here is why: Love is a catalyst that multiplies the effect of your effort. If you do what you love you can create 10 times more value for the same effort as the person who is doing it as work. Love is the ultimate leverage. Add this to the list of forms of capital and put it on top of the list. The margins on work are tiny. You can barely make enough to survive. The only way to make real money is to leverage effort with raw unadulterated love. Lovingly crafted buildings, the precision engines of Mr Soichiro Honda, the music of Mr J S Bach, these are all more than the sum of their parts, because they are all effort multiplied by love. When you see things that are so lovingly crafted, they seem a bargain even at full price. What is the connection between this passion and money? To practice your passion alone in a quiet room all by yourself creates value but not enough of it. For real wealth to be created the passion must produce value for other people. Multiply your efforts with your passions and then multiply it with the number of people that you create value for. This is your total output. If you create value for people, then in time the system will burst at the seams with value and the value will come back to you in many forms including cash. You just have to trust the process. The important thing is not the amount of money flowing back but the amount of value being created. The money is a side-effect of the value creation. It is not an alternative to it or a substitute for the value creation.