--- title: "Meaning & Key Takeaway of: Profits are not made by differential…" description: "\"Profits are not made by differential cleverness, but by differential stupidity.\" — David Ricardo" image: "https://sms4smile.com/quotes/i/dd2/david-ricardo-9461_cleverness_profits-are-not-made-by-differential-cle_1413102.jpg" --- # Profits are not made by differential cleverness, but by… ![“Profits are not made by differential cleverness, but by differential stupidity.” quote by David Ricardo](https://sms4smile.com/quotes/i/dd2/david-ricardo-9461_cleverness_profits-are-not-made-by-differential-cle_1413102.jpg) [Download](https://sms4smile.com/quotes/i/dd2/david-ricardo-9461_cleverness_profits-are-not-made-by-differential-cle_1413102.jpg) [Open image](https://sms4smile.com/quotes/i/dd2/david-ricardo-9461_cleverness_profits-are-not-made-by-differential-cle_1413102.jpg) > “Profits are not made by differential cleverness, but by differential stupidity.” [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Success stems from exploiting others' mistakes, not just clever ideas. **In simple terms:** Profit comes from others' errors. Key Takeaway Identify and capitalize on market inefficiencies. Themes economics competition strategy inefficiency Mood analytical critical Type theoretical strategic When to use this quote - investment - business planning - risk assessment - innovation Key Concepts comparative advantage market dynamics Questions to Reflect On - What ethical boundaries exist in exploiting inefficiencies? - How can one create value without depending on others' mistakes? A Different Perspective Relying on others' errors can be unethical and unsustainable. ★ ★ ★ ★ ★ No ratings yet [Cleverness](https://sms4smile.com/quotes/about/cleverness/) [Cleverness Differential](https://sms4smile.com/quotes/about/cleverness-differential-4985191/) [Differential Cleverness](https://sms4smile.com/quotes/about/differential-cleverness-4985189/) [Differential Stupidity](https://sms4smile.com/quotes/about/differential-stupidity-4985188/) [Made](https://sms4smile.com/quotes/about/made/) [Profit](https://sms4smile.com/quotes/about/profit/) [Profits](https://sms4smile.com/quotes/about/profits/) [Profits Differential](https://sms4smile.com/quotes/about/profits-differential-4985190/) [Stupidity](https://sms4smile.com/quotes/about/stupidity/) ## Related quotes > [Profits might also increase, because improvements might take place in agriculture, or in the implements of husbandry, which would augment the produce with the…](https://sms4smile.com/quotes/david-ricardo/profits-might-also-increase-because-improvements-might-take-place-in/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [Nothing contributes so much to the prosperity and happiness of a country as high profits.](https://sms4smile.com/quotes/david-ricardo/nothing-contributes-so-much-to-the-prosperity-and-happiness-of-a/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [A rise in wages, from an alteration in the value of money, produces a general effect on price, and for that reason it produces…](https://sms4smile.com/quotes/david-ricardo/a-rise-in-wages-from-an-alteration-in-the-value-of-money-produces-a/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [The facility of obtaining food is beneficial in two ways to the owners of capital, it at the same time raises profits and increases…](https://sms4smile.com/quotes/david-ricardo/the-facility-of-obtaining-food-is-beneficial-in-two-ways-to-the/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [Whenever, then, the usual and ordinary rate of the profits of agricultural stock, and all the outgoings belonging to the cultivation of land, are…](https://sms4smile.com/quotes/david-ricardo/whenever-then-the-usual-and-ordinary-rate-of-the-profits-of/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [The variation in the value of money, however great, makes no difference in the rate of profits.](https://sms4smile.com/quotes/david-ricardo/the-variation-in-the-value-of-money-however-great-makes-no-difference/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [There can be no rise in the value of labour without a fall of profits.](https://sms4smile.com/quotes/david-ricardo/there-can-be-no-rise-in-the-value-of-labour-without-a-fall-of-profits/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [There is no way of keeping profits up but by keeping wages down…](https://sms4smile.com/quotes/david-ricardo/there-is-no-way-of-keeping-profits-up-but-by-keeping-wages-down/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [During the period of capital moving from one employment to another, the profits on that to which capital is flowing will be relatively high,…](https://sms4smile.com/quotes/david-ricardo/during-the-period-of-capital-moving-from-one-employment-to-another/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [Too many people are apt to redeem their profits too quickly. In a huge bull market they wind up with piddling profits, only to…](https://sms4smile.com/quotes/martin-zweig/too-many-people-are-apt-to-redeem-their-profits-too-quickly-in-a-huge/) [Martin Zweig](https://sms4smile.com/quotes/author/martin-zweig/) > [“All men can see these tactics Whereby I master; But out of which evolve profits None can see the character. Strategy without character Is…](https://sms4smile.com/quotes/amah-lambert/all-men-can-see-these-tactics-whereby-i-master-but-out-of-which/) [Amah Lambert](https://sms4smile.com/quotes/author/amah-lambert/) > [Chasing profits and building a long-term profit model are two different things.](https://sms4smile.com/quotes/lewis-howes/chasing-profits-and-building-a-long-term-profit-model-are-two/) [Lewis Howes](https://sms4smile.com/quotes/author/lewis-howes/) > [I don't think anyone went the polls and said, 'I am casting my vote to make sure that Wall Street has better chances to…](https://sms4smile.com/quotes/elizabeth-warren/i-don-t-think-anyone-went-the-polls-and-said-i-am-casting-my-vote-to/) [Elizabeth Warren](https://sms4smile.com/quotes/author/elizabeth-warren/) > [When people make donations to non profits, they want to know that their money goes to good use.](https://sms4smile.com/quotes/sam-simon/when-people-make-donations-to-non-profits-they-want-to-know-that/) [Sam Simon](https://sms4smile.com/quotes/author/sam-simon/) > [Companies are not charitable enterprises: They hire workers to make profits. In the United States, this logic still works. In Europe, it hardly does.](https://sms4smile.com/quotes/paul-samuelson/companies-are-not-charitable-enterprises-they-hire-workers-to-make/) [Paul Samuelson](https://sms4smile.com/quotes/author/paul-samuelson/) ## More by David Ricardo > [It appears to me that one great cause of our difference in opinion on subjects which we often discuss is that you have always…](https://sms4smile.com/quotes/david-ricardo/it-appears-to-me-that-one-great-cause-of-our-difference-in-opinion-on/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [To alter the money value of commodities, by altering the value of money, and yet to raise the same money amount by taxes, is…](https://sms4smile.com/quotes/david-ricardo/to-alter-the-money-value-of-commodities-by-altering-the-value-of/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [Like all other contracts, wages should be left to the fair and free competition of themarket, and should never be controlled by the interference…](https://sms4smile.com/quotes/david-ricardo/like-all-other-contracts-wages-should-be-left-to-the-fair-and-free/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [During the period of capital moving from one employment to another, the profits on that to which capital is flowing will be relatively high,…](https://sms4smile.com/quotes/david-ricardo/during-the-period-of-capital-moving-from-one-employment-to-another/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [There is no way of keeping profits up but by keeping wages down…](https://sms4smile.com/quotes/david-ricardo/there-is-no-way-of-keeping-profits-up-but-by-keeping-wages-down/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [If the quantity of labour realized in commodities, regulate their exchangeable value, every increase of the quantity of labour must augment the value of…](https://sms4smile.com/quotes/david-ricardo/if-the-quantity-of-labour-realized-in-commodities-regulate-their/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [Whenever the current of money is forcibly stopped, and when money is prevented from settling at its just level, there are no limits to…](https://sms4smile.com/quotes/david-ricardo/whenever-the-current-of-money-is-forcibly-stopped-and-when-money-is/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [The exchangeable value of all commodities rises as the difficulties of their production increase.](https://sms4smile.com/quotes/david-ricardo/the-exchangeable-value-of-all-commodities-rises-as-the-difficulties/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [Whether a bank lent one million, ten million, or a hundred millions, they would not permanently alter the market rate of interest; they would…](https://sms4smile.com/quotes/david-ricardo/whether-a-bank-lent-one-million-ten-million-or-a-hundred-millions/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [If then the prosperity of the commercial classes, will most certainly lead to accumulation of capital, and the encouragement of productive industry; these can…](https://sms4smile.com/quotes/david-ricardo/if-then-the-prosperity-of-the-commercial-classes-will-most-certainly/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [I have already expressed my opinion on this subject in treating of rent, and have now only further to add, that rent is a…](https://sms4smile.com/quotes/david-ricardo/i-have-already-expressed-my-opinion-on-this-subject-in-treating-of/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [A BOUNTY on the exportation of corn tends to lower its price to the foreign consumer, but it has no permanent effect on its…](https://sms4smile.com/quotes/david-ricardo/a-bounty-on-the-exportation-of-corn-tends-to-lower-its-price-to-the/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [Labour, like all other things which are purchased and sold... has its natural and its market price.](https://sms4smile.com/quotes/david-ricardo/labour-like-all-other-things-which-are-purchased-and-sold-has-its/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [If a commodity were in no way useful, - in other words, if it could in no way contribute to our gratification, - it…](https://sms4smile.com/quotes/david-ricardo/if-a-commodity-were-in-no-way-useful-in-other-words-if-it-could-in-no/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) > [As the revenue of the farmer is realized in raw produce, or in the value of raw produce, he is interested, as well as…](https://sms4smile.com/quotes/david-ricardo/as-the-revenue-of-the-farmer-is-realized-in-raw-produce-or-in-the/) [David Ricardo](https://sms4smile.com/quotes/author/david-ricardo/) [Explore all 72 David Ricardo quotes ](https://sms4smile.com/quotes/author/david-ricardo/) ## More Cleverness quotes > [“Rumi observed, “Sell your cleverness and purchase bewilderment.”](https://sms4smile.com/quotes/wayne-w-dyer/rumi-observed-sell-your-cleverness-and-purchase-bewilderment/) [Wayne W. Dyer](https://sms4smile.com/quotes/author/wayne-w-dyer/) > [“Passion often makes a madman of the cleverest man, and renders the greatest fools clever.”](https://sms4smile.com/quotes/francois-de-la-rochefoucauld/passion-often-makes-a-madman-of-the-cleverest-man-and-renders-the/) [François de La Rochefoucauld](https://sms4smile.com/quotes/author/francois-de-la-rochefoucauld/) > [If we fail to appreciate the soul that Easternism gives us, then what we have is a disconnected, Greco-Roman, Western, egocentric, compartmentalized, reductionist, fragmented,…](https://sms4smile.com/quotes/joel-salatin/if-we-fail-to-appreciate-the-soul-that-easternism-gives-us-then-what/) [Joel Salatin](https://sms4smile.com/quotes/author/joel-salatin/) > [A fool is a person who guesses and gets it wrong, a clever man is one who guesses, regardless of time period, and gets…](https://sms4smile.com/quotes/voltaire/a-fool-is-a-person-who-guesses-and-gets-it-wrong-a-clever-man-is-one/) [Voltaire](https://sms4smile.com/quotes/author/voltaire/) > [Ultimately, of course, you must decide for yourself whether the subjective psychological effects created by your evolved cognitive biases reflect an objective reality, perhaps…](https://sms4smile.com/quotes/jesse-bering/ultimately-of-course-you-must-decide-for-yourself-whether-the/) [Jesse Bering](https://sms4smile.com/quotes/author/jesse-bering/) > [Limits have to be set on how far one can simply use the... cleverness that we have to make changes.](https://sms4smile.com/quotes/leon-kass/limits-have-to-be-set-on-how-far-one-can-simply-use-the-cleverness/) [Leon Kass](https://sms4smile.com/quotes/author/leon-kass/) > [Sometimes people try way too hard to sound clever on Facebook.](https://sms4smile.com/quotes/anonymous/sometimes-people-try-way-too-hard-to-sound-clever-on-facebook/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Many of the greatest men have owed their success to industry rather than to cleverness.](https://sms4smile.com/quotes/john-lubbock/many-of-the-greatest-men-have-owed-their-success-to-industry-rather/) [John Lubbock](https://sms4smile.com/quotes/author/john-lubbock/) > [What a curious picture it is to find man, homo sapiens, of divine origin, we are told, seriously considering going underground to escape the…](https://sms4smile.com/quotes/j-william-fulbright/what-a-curious-picture-it-is-to-find-man-homo-sapiens-of-divine/) [J. William Fulbright](https://sms4smile.com/quotes/author/j-william-fulbright/) > [“Neither the Russians nor the Americans were the cleverest people, or the most experienced, in the world that followed 1945. The French were rather…](https://sms4smile.com/quotes/t-r-fehrenbach-2/neither-the-russians-nor-the-americans-were-the-cleverest-people-or/) [T.R. Fehrenbach](https://sms4smile.com/quotes/author/t-r-fehrenbach-2/) > [Where there is simplicity, there are a hundred Angels, but where there is cleverness - there are none.](https://sms4smile.com/quotes/ambrose-of-optina/where-there-is-simplicity-there-are-a-hundred-angels-but-where-there/) [Ambrose of Optina](https://sms4smile.com/quotes/author/ambrose-of-optina/) > [Human integrity is determined by the heart, not by cleverness.](https://sms4smile.com/quotes/senora-roy/human-integrity-is-determined-by-the-heart-not-by-cleverness/) [Senora Roy](https://sms4smile.com/quotes/author/senora-roy/) > [In late modernity we grow more and more accustomed to politicians and public figures who are indebted to their appetites for their "values," to…](https://sms4smile.com/quotes/kenny-smith/in-late-modernity-we-grow-more-and-more-accustomed-to-politicians-and/) [Kenny Smith](https://sms4smile.com/quotes/author/kenny-smith/) > [The art of investment has one characteristic that is not generally appreciated. 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The notion that it…](https://sms4smile.com/quotes/george-steiner/books-are-in-no-hurry-an-act-of-creation-is-in-no-hurry-it-reads-us/) [George Steiner](https://sms4smile.com/quotes/author/george-steiner/) [Browse all 406 Cleverness quotes ](https://sms4smile.com/quotes/about/cleverness/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Profits are not made by differential cleverness, but by differential stupidity.", "creator": { "@type": "Person", "name": "David Ricardo" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/david-ricardo/profits-are-not-made-by-differential-cleverness-but-by-differential/", "about": { "@type": "Thing", "name": "Cleverness" }, "@id": "https://sms4smile.com/quotes/david-ricardo/profits-are-not-made-by-differential-cleverness-but-by-differential/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/dd2/david-ricardo-9461_cleverness_profits-are-not-made-by-differential-cle_1413102.jpg", "contentUrl": "https://sms4smile.com/quotes/i/dd2/david-ricardo-9461_cleverness_profits-are-not-made-by-differential-cle_1413102.jpg", "url": "https://sms4smile.com/quotes/i/dd2/david-ricardo-9461_cleverness_profits-are-not-made-by-differential-cle_1413102.jpg", "width": 1080, "height": 1080, "caption": "“Profits are not made by differential cleverness, but by differential stupidity.” — David Ricardo", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "David Ricardo", "item": "https://sms4smile.com/quotes/author/david-ricardo/" }, { "@type": "ListItem", "position": 4, "name": "Profits are not made by differential...", "item": "https://sms4smile.com/quotes/david-ricardo/profits-are-not-made-by-differential-cleverness-but-by-differential/" } ], "@id": "https://sms4smile.com/quotes/david-ricardo/profits-are-not-made-by-differential-cleverness-but-by-differential/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```