Leverage is the topic on my mind this week. An analogy someone described this week is that of the activity of a train leaving the station with someone running along side shoveling individual pieces of coal into the engine – that, is very difficult. However, when you can get many people shoveling coal, you have a much easier job – just like if you have a stockpile of coal already in the engine.

There are many applications of leverage in finance – extra help is certainly one. So is having a stockpile to draw on for fuel, and likewise, so is having access to help and fuel, which is what you get when you have a support team and access to capital and / or credit to fuel your financial ventures.