Randomized Evidence

Before starting this topic I would like to give credit to the Original Author Burke Hedges who wrote the book called ” Parable of Pipeline”. This video explains exact story of Pablo and Bruno which changed their life.

Let me explain this story in short.
Suppose that all the wells that supplied a village dried up. So the Mayor of that village called together a town meeting to discuss how to get water from a fresh water source that was 2 miles away and put it back into the well that supplied the village. For every gallon of water that was put into the well, that person made a dollar. Now here’s the catch. It doesn’t matter how the water gets there, just as long as it does.

Since everyone knows they will get paid a certain amount of money for every gallon of water they supply to the well, they start carrying buckets. They trade their Time for dollars doing manual labor.

The illustration below is an example of what the people pipeline builders do.They are researching and learning they start to build pipelines that connect from the fresh water source to the village well. By the way, this doesn’t happen overnight. Let me ask you a question. When your pipeline is only half way finished, how much water is flowing to the village? None right; so how much money are you making? None. Often times while pipeline builders is building their pipeline they are getting laughed at because they aren’t making any money. They are still building their pipeline but once that pipeline is connecting the well to the fresh water supply, the pipeline builders now has a system that does the work for them (the pipeline is the system). Now all they have to do is maintain the pipes here and there and every time someone turns on their faucet to get water, That person is generating Passive Income. Now they have time to do what they want and even the know-how that if they choose, can build more pipelines. So what does this mean?


Comments on: "Parable of Pipeline:Ultimate way to accumulate wealth" (2)

  1. […] Parable of Pipeline Like this:LikeBe the first to like this post. Comments (2) […]

  2. Concept nicely illustrated on the images! :=

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