Why did Naval mention that "Reading is leverage"?

Okay, let's dive into Naval's fascinating point.

Why Is "Reading the Ultimate Leverage"? Naval's Statement is Packed with Insight

Hey there! Really glad you're curious about Naval's thought. This phrase might sound a bit mystifying, but its meaning is actually quite down-to-earth and genuinely eye-opening once you grasp it.

Let's break down what "Leverage" means in simple terms first.

Imagine trying to move a huge, heavy rock. Pushing with your bare hands, you just sweat bullets and it doesn't budge. But give yourself a long enough stick and a fulcrum to place it under the rock, and lever – voilà, the rock moves!

In this scenario:

Your physical effort is the "input".
Moving the rock is the "output".
That stick is the "leverage".

The essence of leverage is: using a small input to gain a disproportionately large output.

Naval believes that the key factor creating vast differences between people in modern society is understanding and skillfully utilizing leverage. He mentions several types of leverage:

Labor Leverage: Hiring people to work for you. The oldest form.
Capital Leverage: Using money to make more money, like investing.
The New Leverage (Infinite Leverage): Code and Media. You write software, record a podcast, or write an article. This can be copied and consumed an infinite number of times by others with almost zero additional cost to you.

Alright, setup complete. Now let's see why Reading is the most fundamental and arguably the most powerful form of this leverage.

1. Reading is Leverage on "Time and Wisdom"

This is the core point.

Imagine a top expert in a field, say Charlie Munger. He spent his entire lifetime learning, practicing, making mistakes, and distilling wisdom, ultimately packing it all into a book like Poor Charlie's Almanack.

You? You only need to spend a few dozen dollars and maybe ten to twenty hours to "download" the essence of his life's wisdom into your brain.

What are you leveraging? You're leveraging the author's entire lifetime.
What's your input? A few dozen dollars and ten to twenty hours.
What's your output? Potentially life-changing mental models, valuable lessons that prevent future pitfalls.

The return on investment here is incalculable! You're having a conversation with the brightest minds in history, getting them as private tutors, all at a cost so low it's negligible. You don't need to know them personally or check their schedule. Anytime, anywhere, pick up a book and gain something valuable.

Isn't this the ultimate time leverage?

2. Reading is Leverage on "Decision Quality"

Our lives are the sum of countless decisions, big and small. Which university to attend? What major to choose? Which company to join? Who to marry? Should I invest in this project?...

The quality of your decisions directly shapes your life trajectory.

So, how do you improve decision quality? The answer is by building a better "Mental Models" toolkit. Mental models are like tools in your brain. The more tools you have, and the better they are, the stronger your problem-solving abilities.

Read economics, and you understand "opportunity cost."
Read physics, and you grasp "critical mass."
Read biology, and you comprehend "natural selection."

Wisdom from different disciplines becomes your mental "checklist" when making decisions. Facing complex problems, your mind isn't blank anymore. Instead, you can analyze from multiple angles, leading to better choices.

One good decision can yield benefits for years or even decades to come. The seed for that great decision might have been planted by a book you read one afternoon.

Reading, by elevating your cognition, leverages the direction of your future life.

3. Reading is the Fuel for Creating "New Leverage"

Remember that New Leverage we discussed – code and media?

Want to write code? You need to learn programming languages first. How? Reading books and documentation is fundamental. Want to build a media presence, create insightful articles, or produce thoughtful videos? Where do your viewpoints and material come from? The most reliable and systematic source is extensive reading.

Reading itself might not generate money directly, but it provides the essential raw materials needed to create new leverage. It's like adding fuel to your "leverage manufacturing machine." Thought without input is like water without a source, and reading is the most efficient, cheapest form of input.

The more books you absorb into your mind, the more mental "chemical reactions" occur between the ideas. This significantly increases the likelihood that you'll generate unique insights and create valuable content (media) or tools (code).

To Summarize

So, when Naval says "Reading is leverage," we can understand it like this:

It has an extremely low cost: The price of a few books is trivial compared to the potential returns.
It leverages massive intangible assets: Others' time, wisdom, and experience.
It boosts your most important ability: Decision-making, thereby leveraging your entire life trajectory.
It's the foundation for building your own leverage: Providing a continuous stream of fuel to create code or media.

Simply put, reading is upgrading your underlying operating system. While others are tackling problems with outdated systems, you've installed the latest, most powerful mental software through reading. Faced with the same challenges, your efficiency and effectiveness naturally outpace the rest.

That's why Naval champions reading so strongly. It's one of the most equitable, accessible, and profoundly underrated superpowers. Hope this explanation helps!