How to get started with leverage, and why.

Image Credit: https://www.math.nyu.edu/~crorres/Archimedes/Lever/LeverIntro.html

I’ve been thinking a lot about leverage recently.

It all started when I decided to spend the first 6 months of 2022 reading as much as I could about the mental models that Charlie Munger and Warren Buffets rigorously use. One thing that struck me whilst reading was how leverage seems to be the foundation (or the “message”) of so many important mental models.