I recently read “The Almanack of Naval Ravikant” and I recommend it to everyone. This is a book about the venture capital AngelList CEO Naval Ravikant’s own writings on wealth, philosophy, and investing.
There is a way to succeed
Laviken is still young, and many of his ideas are very advanced and fit the pulse of contemporary society. If you really think through and practice what Laviken says in the book, it will work for most people. After reading this book, I can’t help but recall of several books that I have read that have far-reaching influence like For example, books like “Rich Dad, Poor Dad” and “Secrets of the Millionaire Mind” that I wrote on this blog.
This is also what I have always believed, there is no 100% formula for success to follow, but there are ways. The principles that the characters in these books have lived through, proven to work, and do prove to be doable are the methods of success.
Accumulate wealth instead of making money
“A high salary doesn’t make you rich, intellectual property does.” Those who really make a lot of money own a part of a product, business, or intellectual property. Real wealth is usually created by starting your own business or by investing as a minority shareholder in a company. If you don’t have a business of your own, there is no path to financial freedom. Because “you can’t get rich by renting out your time cheaply.” You have to have intellectual property rights, your own business, or some equity.
“Pursue wealth, not money or status”. Wealth is an asset that still makes money while you sleep. Money is just a means of converting time and wealth. Status is where you are in the social class system. Making money isn’t a thing to do—it’s a skill to learn.
Time and compound interest
Whether it’s wealth, relationships, or knowledge, “all the rewards you get in life come from compounding.” Make money with your head, not your time. You can never get rich by renting out your time. You can’t get rich by spending time saving money, but you can get rich by saving your time.
“People who are too smart don’t get rich because someone will always give you a good enough job.” “We waste time short-term thinking and busy work. Buffett spends a year making decisions , act in one day. Do it for decades.” Act fast and be patient with results. The wealth of the last generation was created by leveraging capital, such as Buffett. But not in this day and age.
Productize yourself, the core of Almanack of Naval Ravikant
Capital and labor are levers that require permission to use. Everyone is chasing capital, but someone has to pay. Everyone wants to lead others, but someone has to be a subordinate.
One of the most important things I get from “The Almanack of Naval Ravikant” is – Products or services with zero marginal cost are brand new levers, including books, media, movies, and software; software is the most powerful, you only need a computer, and you don’t need permission from anyone.
Keep in mind — you don’t need other people to help or provide you with funds to multiply your efforts. Writing programs, writing books, recording podcasts, tweeting, sharing videos on YouTube, you don’t need permission to use them. This is the reason why the new type of leverage is equal, and everyone can use it. They can make money for you while you sleep — this is the fundamental difference from other similar books wrote decads ago, and is why I highly recommend “The Almanack of Naval Ravikant”.
The Internet has greatly broadened the possibilities for careers; but most people don’t yet understand this.
Your feelings don’t tell the truth — they just tell you some estimates of the truth. Almost all biases are time-saving inspirations. For important decisions, let go of memory and identity and focus on the problem. Very smart people are often extraordinary because they insist on thinking about everything on their own.
The more you know, the less diversity you have (note: he means not having to dance with the crowd).
Ignore that noise. The market will decide.
Happiness and success
Happiness comes from contentment. Success comes from dissatisfaction and choice. Grind and sweat, toil and bleed, face the abyss. It’s all about overnight fame.
Bryce Pascal: “Everyone’s trouble comes because he can’t sit quietly in the room alone.” (Note: Charlie Munger had the same saying) Yes, you are successful.
Outlook on life
If you can’t see you work with someone your whole life, don’t work with them for even a day. Advice for your younger self: “Be yourself.” If you want to do something later, do it now. No later. Inspiration is fleeting –- act immediately. The hardest part is not doing what you want to do — it is knowing what you want to do.
Holding back means spending years in bad relationships and bad jobs, not minutes. Courage is not rushing into a machine gun nest. Courage is not caring what others think.
Health, love and your mission, in that order, nothing else matters.
Further reading for The Almanack of Naval Ravikant
If friends are against Naval. If Laviken’s book is of interest, see Naval. Laviken’s excellent interview article “How to Get Rich” published on his website, thanks to a friend who is a venture capitalist, Mr. Jacky Pan, for his enthusiastic recommendation.
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