An investment in knowledge pays the best interest.
Core idea
The highest-return investment is often in your own knowledge, judgment, and ability to think clearly. Unlike a financial asset, knowledge compounds internally and improves every future decision you make.
Practical application
Keep reading, studying businesses, and refining your decision-making frameworks. The more you understand markets, incentives, accounting, and history, the fewer avoidable mistakes you make with real money.
Why it matters
Franklin is reframing investing itself: before you invest successfully in assets, you must invest in your own mind. Intellectual compounding often comes before financial compounding.
