Worth a Read: "Of Dollars and Data: What Will Always Be True," by Nick Maggiulli
Eric Franklin
One way to make money in markets is to have solid mental models and the fortitude to endure the periods of irrationality that are part and parcel of complex adaptive systems. Nick Maggiulli traverses from nature to business to investing and back again within a great blog post based on concepts from "Scale" (a book which is steadily being bumped up my reading list). Enjoy.
“As the number of employees increases, company revenue increases slightly exponentially/superlinearly. To be exact, every time the number of employees doubles (a 100% increase), revenue goes up by 112% (more than double). This corresponds to the slope of the line above at 1.12 (on a log-log scale). Note that this does not imply causality between these two metrics, but that, in a successful business, they tend to move together in some organic fashion.”
