For those who don’t know him, Naval Ravikant is a thinker, a philosopher, and the Co-founder and CEO of AngelList. Through podcasts and his Twitter Account, Naval share deep thoughts on Technology, Investing and everything around the sphere of Startups Eco-System.
In one of his latest tweetstorms, Naval shared a great thread on “How to Get Rich Without Getting Lucky”. This thread is one of the best and practical ideas you will ever come across. It goes to show that ethical wealth creation is possible enough in places where it’s no news if there is no corruption scandal.
Below are the ideas on how to get rich ethically from Naval. All the ideas are quoted from his original tweet.
How to Get Rich Without Getting Lucky by Naval
1. “Seek wealth, not money or status.” ~ Naval
-> Wealth: Having Assets that earn while you sleep.
-> Money: How we transfer time and wealth.
-> Status: One’s Place in the Social Hierarchy
2. Understand that ethical Wealth creation is Possible
-> If you secretly despise Wealth, It will elude you.
3. Ignore people playing status games.
-> They gain status by attacking people playing wealth creation games.
4. You are not going to get rich renting out your time.
-> You must own equity (a piece of a business) to gain Financial Freedom.
5. You will get rich by giving society what it wants but does not yet know how to get at scale.
6. Pick an industry where you can play long term games with long term people.
7. The Internet has massively broadened the possible space of careers.
-> Most people haven’t figured this out yet.
8. Play Iterated games.
-> All the returns in life, whether in wealth, relationships, or knowledge, come in Compound interest.
9. Pick business partners with high intelligence, energy, and, above all Integrity.
10. Don’t partner with cynics and Pessimists.
-> Their beliefs are self-fulfilling
11. Learn to Sell. Learn to Build.
-> If you can do both, you will be unstoppable.
12. Arm yourself with Specific knowledge, Accountability, and Leverage.
13. Specific knowledge is the knowledge that you cannot be trained for.
-> If society can train you, it can train someone else, and replace you.
14. Specific knowledge is found by pursuing your genuine curiosity and passion other than whatever is hot right now.
15. Building specific knowledge will feel like play to you but will look like work to others.
16. When specific knowledge is taught, it’s through apprenticeships, not schools.
17. Specific knowledge is often highly technical or creative.
-> It cannot be outsourced or automated.
18. Embrace accountability, take business risks under your own name.
-> Society will reward you with responsibility, equity, and leverage.
19. The most accountable people have singular, public, and risky brands: Oprah, Trump, Kanye, Elon.
20. “Give me a lever long enough, and a place to stand, and I will move the earth.” ~ Archimedes
21. Fortunes require leverage, Business leverage comes from Capital, People, and Products with no marginal cost of replication (code and media)
22. Capital means money.
-> To raise money, apply your specific knowledge, with accountability, and show good judgment.
23. Labor means people working for you.
-> It’s the oldest and most fought-over form of leverage.
-> Labour leverage will impress your parents, but don’t waste your life chasing it.
24. Capital and labor are permissioned leverage.
-> Everyone is chasing capital, but someone has to give it to you.
-> Everyone is trying to lead, but someone has to follow you.
25. Code and media are permissionless leverage.
-> They’re the leverage behind the newly rich.
-> You can create software and media that works for you while you sleep.
26. An army of robots is freely available
– it’s just parked in data centers for heat and space efficiency. Use it.
27. If you can’t code, write books and blogs, record videos and podcasts.
28. Leverage is a force multiplier for your judgment.
29. Judgment requires experience but can be built faster – by learning foundational skills
30. There is no skill called “business”.
-> Avoid Business magazines and business classes.
31. Set and enforce an aspirational personal hourly rate.
-> If fixing a problem will save less than your hourly rate, ignore it.
-> If outsourcing a task will cost less than your hourly rate, outsource it.
32. You should be too busy to “do coffee,” while still keeping an uncluttered calendar.
33. Reading is faster than listening. Doing is faster than watching.
34. Work as hard as you can.
-> Even though who you work with and what you work on, are more important than how hard you work.
35. Study microeconomics, game theory, psychology, persuasion, ethics, mathematics, and computers.
36. Become the best in the world at what you do.
-> Keep redefining what you do until this is true.
37. When you’re finally wealthy, you’ll realize that it wasn’t what you were seeking in the first place.