Whoever first said that knowledge is power was probably selling encyclopedias. Knowledge is a tool, like money and influence. Tools are only powerful if they are used effectively. How, then, do you make a headful of knowledge into a powerful tool?

1. By seeing clearly what can be done.

2. By seeing clearly your own limitations.

3. By acting on what you know.

Wise Action, Not Knowledge, Is Power

Investors often learn so much that they think they can consistently predict the course of the stock market. In reality, there are probably fewer than ten old investors that have never lost money. Wise investors know that the best they can do is get the odds in their favor, so they'll have more wins than losses. You have to see the limitations of knowledge.

I can read about how to sing, and even get advice from a voice coach, but I can't sing well. I'm not saying that I could never sing well, only that right now I cannot. If I'm not willing to do what is necessary, then I would be wise to look for a non-singing way to make money. You have to see our own limitations.

The most important part of making knowledge into power, is to act. You can study political philosophy and every aspect of the political process for a decade, and still have no power. Power is in the effective application of what you know.

Imagine an inventor with a hundred ideas on paper. He has a head full of knowledge, and a creative imagination, but nothing to show for it. Now imagine a simple man with one new invention, who understands the limits of innovation without marketing, and sees his own limitations in that area. He seeks out the people that can help, and makes a million. Now that's power.