Naval Ravikant is an Indian American entrepreneur and investor. This Silicon Valley legend is a self-made multi-millionaire, entrepreneur, investor, adviser & influencer. He’s wildly popular on Twitter! His reputation precedes him as a modern business/life philosopher. This book is collection of his tweets and his views on the same. One can easily read this in a couple of hours (feel free to skip some of detailed explanation but his original tweets (marked in shade in book), they are pure joy to read).
Naval’s background in his own words:
We were poor immigrants. My dad came to the US—he was a pharmacist in India. But his degree wasn’t accepted here, so he worked in a hardware store. Not a great upbringing, you know. My family split up.
I was a totally unknown kid in New York City from a nothing family, an “immigrants trying to survive” situation. Then, I passed the test to get into Stuyvesant High School. That saved my life, because once I had the Stuyvesant brand, I got into an Ivy League college, which led me into tech. Stuyvesant is one of those intelligence lottery situations where you can break in with instant validation. You go from being blue collar to white collar in one move.
I was born poor and miserable. I’m now pretty well-off, and I’m very happy. I worked at those.
I’ve learned a few things, and some principles. I try to lay them out in a timeless manner, where you can figure it out for yourself. Because at the end of the day, I can’t quite teach anything. I can only inspire you and maybe give you a few hooks so you can remember.
Some of his tweets (coped from his book) are:
How to Get Rich (Without Getting Lucky):
- Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.
- Understand ethical wealth creation is possible. If you secretly despise wealth, it will elude you.
- Ignore people playing status games. They gain status by attacking people playing wealth creation games.
- You’re not going to get rich renting out your time. You must own equity—a piece of a business—to gain your financial freedom.
- You will get rich by giving society what it wants but does not yet know how to get. At scale.
- Pick an industry where you can play long-term games with long-term people.
- The internet has massively broadened the possible space of careers. Most people haven’t figured this out yet.
- Play iterated games. All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest.
- Pick business partners with high intelligence, energy, and, above all, integrity.
- Don’t partner with cynics and pessimists. Their beliefs are self-fulfilling.
- Learn to sell. Learn to build. If you can do both, you will be unstoppable.
- Arm yourself with specific knowledge, accountability, and leverage.
- Specific knowledge is knowledge you cannot be trained for. If society can train you, it can train someone else and replace you.
- Specific knowledge is found by pursuing your genuine curiosity and passion rather than whatever is hot right now.
- Building specific knowledge will feel like play to you but will look like work to others.
- When specific knowledge is taught, it’s through apprenticeships, not schools.
- Specific knowledge is often highly technical or creative. It cannot be outsourced or automated.
- Embrace accountability, and take business risks under your own name. Society will reward you with responsibility, equity, and leverage.
- “Give me a lever long enough and a place to stand, and I will move the earth.” —Archimedes
- Fortunes require leverage. Business leverage comes from capital, people, and products with no marginal cost of replication (code and media).
- Capital means money. To raise money, apply your specific knowledge with accountability and show resulting good judgment.
- Labor means people working for you. It’s the oldest and most fought-over form of leverage. Labor leverage will impress your parents, but don’t waste your life chasing it.
- 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.
- 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.
- An army of robots is freely available—it’s just packed in data centers for heat and space efficiency. Use it.
- If you can’t code, write books and blogs, record videos and podcasts.
- Leverage is a force multiplier for your judgment.
- Judgment requires experience but can be built faster by learning foundational skills.
- There is no skill called “business.” Avoid business magazines and business classes.
- Study microeconomics, game theory, psychology, persuasion, ethics, mathematics, and computers.
- Reading is faster than listening. Doing is faster than watching.
- You should be too busy to “do coffee” while still keeping an uncluttered calendar.
- 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.
- 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.
- Become the best in the world at what you do. Keep redefining what you do until this is true.
- There are no get-rich-quick schemes. Those are just someone else getting rich off you.
- Apply specific knowledge, with leverage, and eventually you will get what you deserve.
- When you’re finally wealthy, you’ll realize it wasn’t what you were seeking in the first place. But that is for another day.
- Summary: Productize Yourself
Some of other parts which resonated with me.
- The most important skill for getting rich is becoming a perpetual learner. You have to know how to learn anything you want to learn. The old model of making money is going to school for four years, getting your degree, and working as a professional for thirty years. But things change fast now. Now, you have to come up to speed on a new profession within nine months, and it’s obsolete four years later. But within those three productive years, you can get very wealthy.
- Basic arithmetic and numeracy are way more important in life than doing calculus. Similarly, being able to convey yourself simply using ordinary English words is far more important than being able to write poetry, having an extensive vocabulary, or speaking seven different foreign languages.
- Knowing how to be persuasive when speaking is far more important than being an expert digital marketer or click optimizer. Foundations are key. It’s much better to be at 9/10 or 10/10 on foundations than to try and get super deep into things.
- An old boss once warned: “You’ll never be rich since you’re obviously smart, and someone will always offer you a job that’s just good enough.”
