This content was created by Richard Canfield. This content was uploaded by Richard Canfield. This is a YouTube video titled "Your Dollar Can Multiply Tenfold" featuring Richard Canfield discussing the efficiency of a business model that allows capital to multiply over time, using the example of insurance companies and shared ownership in a pool of capital.
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We're not creating this magical money out of thin air. It's about recognizing that we built a business that is very efficient. And now every time that a dollar goes into the business, the business creates more dollars over that same year for the equivalent injection of capital. And as you continue to do that over a period of time, the ability for that to multiply actually becomes very high. You get to a point later on where now you're 20 years into the business and for every dollar that you put in, it's creating 3, 4, 5, 6, 7, maybe even as many as, maybe not as high as $10, but it's creating a lot of extra dollars of usable capital. The OPM you get to use is the insurance company and you co own them. You are a part owner in that big pool. They're going to let you tap into that big pool and put it to work for your needs. At the same point that you're doing that, they are putting it to work for the needs of everyone else in that pool, which includes you.