May 8, 2024

The curve is sloping downward, the market has spoken

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Each additional unit of investment is yielding progressively diminishing returns.

And the future value is next to nothing.

Have you ever reached that point in your life before?

It activates a hearty cocktail of emotions. There’s sadness in saying goodbye to something that outlived its usefulness. There’s relief in letting go of an obligation that is no longer paying dividends.

There’s regret in wondering if maybe you should have dropped this goddamn albatross years ago. There’s also excitement in seeing what new investment will fill the void.

What curve is sloping downward in your life? Where have you reached the point of diminishing returns?

Thank god the market had spoken. Anytime you realize that each additional unit of investment is yielding progressively diminishing returns, it’s a beautiful thing.

Especially if you can find a way to have your cake and eat it too. Or as my grandfather likes to joked, kill two stones with one bird.

There’s a concept in the business word called the final mile, which is the last stage in the delivery of media communication or physical goods to a consumer. Last mile logistics are notoriously costly and require a significant amount of planning to be timely and efficient.

Amazon, for example, utilizes a vast network of third party services and its own fleet of vehicles to deliver packages to its customers over the last mile.

Do you know what percent of the total shipping costs it is? Forty. Nearly half of the total fulfillment resources are dedicated to that final five thousand two hundred and eight feet.

Forty percent is bonkers. And yet, it’s where that company thrives. Amazon didn’t join the trillion dollar club because of dumb luck.

What’s fascinating is, when it comes to other areas of our lives, the final mile can be something worth eliminating. In a way that doesn’t hurt the overall experience.

You would dramatically increase your future value. By eliminating the final mile, you could prioritize the most rewarding aspects of your work, while strategically circumventing the costly and less rewarding aspects.

Eat as much cake as you want.

What legacy investment is yielding progressively diminishing returns?