Summary

“I did not intend to get rich. I just wanted to get independent.” – Munger Place yourself, your business, and other people you know, on this list. Level 0: Complete financial dependence on the kindness of strangers who have no vested interest in your success. Panhandling when unable to work, or companies reliant on raising money from first-time investors who don’t care if you fail. Level 1: Complete financial dependence on people who want you to succeed because they like you and their reputation is attached to your success. Children under age 15 – supported by their parents and generally too young to work – fall into this category. So do companies backed by friends and family who don’t intend on getting their money back. Level 2: Complete financial dependence on people with a vested interest in your financial outcome. Unprofitable-but-promising businesses backed by investors who could earn a meaningful return on their investments, and are thus likely to keep supporting you. Level 3: Ability to partially support ...