Conversation

What’s percent of your income is return on risk as opposed to compensation for effort? I don’t mean in a tax sense of capital gains. I mean any part of your income that’s due to a risk you took with uncertain return that could have been 0. I think mine has been ~15-30%.
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Rents, passive income, capital gains are tax-legible subsets of the larger nebulous category of return on risk. The optimal is probably <30% otherwise you suffer curse of resources.
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Hard to actually estimate. For eg carefully researched conservative investments are mostly return on effort even if treated as return in risk. You put in effort to lower the courage needed. The courage needed to take an irreversible action is the actual measure of risk.
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Not really. It’s more that courage doesn’t actually teach you very much even though returns can be high. It’s good to be courageous, but to the extent it’s a substitute for thought, you give up learning and growth.
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Replying to @vgr
Is it mostly the volatility aspect of the curse of resources?
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Eg: meta-multiple choice test a) Lazy and not cowardly: guess, score 25% b) Industrious and cowardly: study, score 100% c) Lazy and courageous: steal answers, score 100% d) Industrious and courageous: phone in test you don’t care about, score 60%, do something better with time
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