All the lessons of Naval Rawikant’s podcast on getting rich
About Naval
Before talking about naval rawikant’s lesson to make a ton of wealth, first, let's talk about who he is. Naval Rawikant is one of the brightest minds in the world. He is a philosopher by heart, an innovator by mind, and a true businessman by curiosity. He has some of the best ideas and I feel that he is the guy you should listen to if you want to make money in any context.
He has invested in more than 100 companies and co-founded several successful startups. Here are some of the companies he has been associated with:
AngelList — Naval co-founded AngelList, an online platform that connects startups with investors. AngelList has become one of the most popular platforms for startup fundraising and has helped raise billions of dollars in capital.
Epinions — Naval co-founded Epinions, a consumer review site that went public in 1999 and was later acquired by?Shopping.com.
Twitter — Naval was an early investor in Twitter and has been a vocal supporter of the company. He has also been an active user of the platform.
Uber — Naval was an early investor in Uber, the ride-hailing company that has disrupted the transportation industry.
Yammer — Naval was an early investor in Yammer, a social networking platform for businesses that was later acquired by Microsoft.
Clearview AI — Naval has invested in Clearview AI, a facial recognition startup that has been controversial due to its use by law enforcement agencies.
Foursquare — Naval has invested in Foursquare, a location-based social networking platform that has evolved into a location data company.
Coinbase — Naval has invested in Coinbase, a cryptocurrency exchange that has become one of the most popular platforms for buying and selling cryptocurrencies.
Notion — Naval has invested in Notion, a productivity and collaboration tool that has become popular with remote workers and teams.
These are just a few of the companies that Naval has been associated with. He has also invested in many other startups and has been a mentor to countless entrepreneurs.
So now that we know who we are talking about, let's get to some of the most insightful pieces of advice I found in his?podcast. Check this out for sure if you want to grow in life and become a successful person.
Seek Wealth, Not Money or Status
What does this mean? Are not wealth and money the same thing? Nope, they are not. Wealth is anything that keeps working while you sleep to make you money and is an asset that generates passive income. Money is just a piece of paper which means “I owe you something”.Now why should you not seek money but wealth? That is because when you are trying to trade your time with money, there is a huge limitation to your earning potential which is your time. Instead, when you invest in assets that generate passive income, you can use your time the way you like without worrying about money. Seeking wealth can be difficult tho because it requires you to work a shit ton to actually create an asset. Whether it be building a website, a product, or making youtube videos. These things require a lot of effort to start but when they boom, they boom exponentially.
We should not seek status because the inherent problem with playing status-centric games is that status is built on the concept that someone has to be of lower status for you to be of upper status. That is not the case with money or wealth. That is because our whole society can be wealthy. So not everyone can be high status but everyone can be high income. It is also important to keep in mind that wealth is not made by taking money from others, It's made by providing others value?and helping each other out.
Free Markets Are Intrinsic to Humans
Well,?what differentiates other animals and species of animals from us humans??It is that we have the?built-in ability to keep track of our debits and credits. If today, I give you a valuable piece of information, you will keep that in mind and possibly try to give me some information of equivalent value.
Types of lucks
There are 4 different types of luck that can influence our success, each with its own unique characteristics.?Blind luck, for example, is when something?happens by chance?or coincidence that is completely out of our control. It may work out in our favor, but we had no influence on the situation. On the other hand,?persistent luck is the result of hard work, determination, and perseverance.?By creating opportunities for ourselves, we increase our chances of success. Most families want us to get lucky this way. Spotting?luck is when we are skilled or knowledgeable in a particular field and can recognize when a lucky break comes our way.?This sensitivity to luck can lead to more opportunities and greater success. Finally,?attracting luck?is the most elusive and unpredictable type. It often comes as a result of?having a unique character, mindset, or brand that draws luck toward us.?While luck can play a role in all types of success, by understanding these different types, we can learn how to increase our chances of success and make the most of the opportunities that come our way.
Inputs and outputs shouldn't match
you should be looking for a career where?your hard work doesn’t always correlate with your success. Take marketing, for instance. A clever, well-executed marketing campaign can reach millions of people and boost sales through the roof, but a poorly executed campaign can fall flat and be a waste of time and resources. Or consider a career in research and development. One discovery can change the course of an entire industry, while months or even years of work can lead to no meaningful breakthroughs. On the other hand, if you’re looking for a career where your effort and output are closely related, think about something like carpentry. Even the most skilled carpenter still needs to put in a certain amount of time and effort to build a quality piece of furniture or structure.?By understanding the disconnect between effort and outcome in certain careers, you can make more informed choices about where to focus your time and energy for the greatest potential payoff.
Use the power of internet for endless possibilities
the internet has?massively broadened the possible space of careers. The internet has the power to connect every human to each other on the planet, allowing people to reach a broader audience for their products, talents, and skills. It enables any niche interest to scale out as long as you are the best at it. For example, a video blogger like PewDiePie can build a substantial following and make millions of dollars playing video games. Similarly, Joe Rogan can make over $100 million annually from his podcast. The internet enables people to escape competition by being authentic and unique in expressing their creativity.?The internet allows individuals to be completely different and unique, giving them the freedom to find their own audience, build wealth, create a product, and make people happy.
Long-term games with long-term people
Playing long-term games with long-term people means building relationships and working in an industry where you can trust the people you are working with, and where you are committed to staying for the long haul. This allows you to?benefit from compound interest, as you build up trust, goodwill, and expertise over time, leading to greater rewards at the end of the cycle. In Silicon Valley, for example, trust comes from the network of people in a small geographic area, and over time, you figure out who you can work with and who you can’t. When you keep switching industries or groups, you are starting from scratch, and you do not know who to trust, which makes it harder to play the long-term game. On the other hand, when you work with long-term people, everyone benefits and grows richer over time.
Be a rational optimist
Rational optimism is a mindset that balances a clear understanding of reality with a positive outlook on the future.?This mindset is crucial for achieving success in any area of life, from personal relationships to professional endeavors.
To be a rational optimist, one must first be rational. This means having a clear and objective understanding of the world around us, including its challenges and limitations. It also means being able to assess risks and challenges in a logical and pragmatic manner, rather than succumbing to fear or pessimism.
At the same time, rational optimists must also be optimistic about their own potential and the potential of the world around them. This means having confidence in one’s own abilities, as well as a belief that positive change is possible. This optimism is not blind or naive, but rather based on a realistic assessment of the opportunities that exist in the world.
One of the key benefits of rational optimism is that it allows individuals to take risks and pursue ambitious goals. When one is both rational and optimistic, they are able to identify opportunities and take calculated risks, knowing that the potential rewards are worth the effort. This mindset is essential for achieving success in any field, whether it be business, science, or the arts.
Rational optimism is also beneficial for personal well-being. When one is optimistic about the future, they are more likely to experience positive emotions and maintain a positive outlook on life. This can lead to better relationships, improved health, and a greater sense of overall satisfaction with one’s life.
However, it is important to note that rational optimism is not a cure-all for life’s challenges. There will always be setbacks and obstacles to overcome, and even the most rational and optimistic individuals will face failure at some point. The key is to maintain a balanced perspective and to learn from these setbacks, rather than allowing them to derail one’s overall sense of optimism and positivity.
Build and sell
to be unstoppable, one should learn to build and learn to sell. Building refers to the creation of a product, which can include design, development, manufacturing, logistics, and more. Selling, on the other hand, includes marketing, communication, recruiting, fundraising, and PR. The Silicon Valley startup model tends to work best when two founders have complementary skills: one is a world-class builder, and the other is a world-class seller. However, when one individual can do both, they have true superpowers and can create entire industries. Building and selling can be an effective strategy for creating wealth, whether you’re starting a business, creating a product or service, or simply selling your skills as a freelancer. Here are a few ways in which building and selling can help you create wealth:
It provides a source of income: By building and selling a product or service, you can generate income that can help you achieve financial independence. This income can be reinvested into your business or used to build your savings and investments.
It allows you to leverage your skills and expertise: Building and selling a product or service allows you to leverage your skills and expertise to create something that has value in the market. By doing so, you can charge a premium for your products or services, allowing you to increase your income and build wealth over time.
It can create passive income streams: Building and selling can also create passive income streams that provide ongoing income without requiring ongoing effort. For example, you might create an online course or write an e-book that can be sold repeatedly without requiring additional work on your part.
It provides opportunities for investment: Building and selling a business can also provide opportunities for investment. For example, you might attract investors who are willing to provide funding in exchange for equity in your company. This can help you grow your business and create wealth over time.
It allows you to build assets: Building and selling can also allow you to build assets that have value in the market. For example, if you build a successful business, you might be able to sell it for a profit, providing you with a significant source of wealth.
In conclusion, building and selling can be a powerful strategy for creating wealth. By leveraging your skills and expertise, creating passive income streams
领英推荐
Math+logic=Disruption
Mathematics and logic are critical to understanding the world around us and making informed decisions. Mathematics provides a framework for understanding patterns, relationships, and quantitative data. It allows us to solve problems, make predictions, and analyze complex systems.
Logic, on the other hand, provides a foundation for critical thinking and reasoning. It helps us to identify and evaluate arguments, recognize fallacies, and make sound judgments. By developing a strong foundation in mathematics and logic, we can better navigate the complexities of the world and make informed decisions.
Furthermore, as technology continues to advance, these skills become even more essential. Computer programming, for example, relies heavily on mathematics and logic. Programming requires a strong understanding of mathematical concepts such as algorithms and data structures, as well as logical reasoning skills to debug code and create efficient programs.
Additionally, these skills are transferable to many different fields, not just those traditionally associated with math and logic. For instance, a strong foundation in logic can be applied to legal reasoning, philosophy, and even creative writing. Similarly, mathematics is used extensively in fields such as economics, engineering, and even art and design.
Accountability to get leverage
Accountability is a powerful tool that we can use to get leverage in our lives. It means taking ownership of our actions, holding ourselves responsible for the outcomes, and being willing to make changes when necessary. By embracing accountability, we can create positive change in our lives and achieve our goals.
One of the main benefits of accountability is that it helps us to focus on our goals. When we take ownership of our actions, we become more aware of the steps we need to take to achieve our goals. We start to see the obstacles in our way and begin to develop strategies to overcome them. This focus helps us to stay on track and make progress toward our objectives.
Accountability also helps us to develop self-discipline. When we hold ourselves accountable, we are more likely to stick to our commitments and follow through on our promises. This can be particularly helpful when we are trying to form new habits or make significant changes in our lives. By holding ourselves accountable, we can develop the self-discipline we need to succeed.
Another benefit of accountability is that it helps us to build trust with others. When we take ownership of our actions and hold ourselves accountable, we show others that we are reliable and trustworthy. This can lead to stronger relationships with friends, family, and colleagues, and can help us to achieve success in our personal and professional lives.
Of course, accountability is not always easy. It requires us to be honest with ourselves and to acknowledge our mistakes and shortcomings. It can be tempting to avoid accountability, blame others for our problems, or to make excuses for our failures. However, when we do this, we miss out on the opportunity to learn and grow.
To embrace accountability, we need to be willing to take risks, make mistakes, and learn from our experiences. We need to be willing to admit when we are wrong, apologize when necessary, and make amends when we can. By doing this, we can develop the resilience we need to face challenges and overcome obstacles.
In conclusion, accountability is a powerful tool that can help us to achieve our goals, develop self-discipline, build trust with others, and grow as individuals. It requires us to be honest with ourselves, to take ownership of our actions, and to be willing to make changes when necessary. By embracing accountability, we can create positive change in our lives and achieve our full potential.
Product and media
the most interesting and important form of leverage is products that have no marginal cost of replication, which is the ability to create products that can be reproduced without incurring additional costs. This has been made possible by the printing press, broadcast media, the Internet, and coding. Combining leverage through labor, capital, and products is a magic combination that can help tech startups make huge outsize returns. Moreover, product and media leverage is permissionless, meaning that they don’t require someone else’s permission for one to use them or succeed. Code-based leverage is the most powerful form of leverage in modern society since it lets one control an army of robots that work tirelessly, provided they are given precise instructions. Therefore, coding is a valuable skill since it allows one to speak the language of the robot, thereby harnessing its power. Also, a distribution network to get it to the world. It’s not enough to just have a great product, you also need to be able to get it to people. And that’s where media comes in. The combination of a great product and a strong media presence can be incredibly powerful.
So, if you have a product that can be replicated at no cost and you have a media presence to get it out there, you have a very powerful combination of leverage.
And what would you say to somebody who is looking to leverage their own product or their own content? The first thing you need to do is focus on creating something of value. You can’t just create something and expect it to go viral. You need to create something that people actually want and find useful.
Once you have something of value, you need to get it out there. The best way to do that is through social media. Twitter, Instagram, TikTok, and YouTube, are all great platforms for getting your content in front of people.
And then, once you have an audience, you need to engage with them. You need to be authentic and genuine and respond to their comments and feedback. This will help you build a community around your product or content.
Ultimately, the key to leveraging your product or content is to keep creating and keep improving. You need to keep iterating and experimenting and trying new things. If you can do that, you will eventually find the combination of product and media leverage that works for you.
Pick a Business Model with Leverage
An ideal business model has network effects, low marginal costs and scale economies
Network effects-Network effects refer to the phenomenon where the value of a product or service increases as more people use it. In other words, the more users a network has, the more valuable it becomes to each individual user. This is because a larger network offers more connections, interactions, and benefits to its users. One example of this could be an application’s data or a community. If more people join a community, the community’s value increases. Similarly, if an app obtains a lot of users, like youtube then the data’s value or the advertising cost in the platform increases too.
Low marginal costs-Marginal cost refers to the cost of producing one additional unit of a product or service. When a product or service has low marginal costs, it means that the cost of producing each additional unit is very low. For example, if a company produces a software product, the marginal cost of producing an additional copy of the software is very low. Once the software has been developed and the production process is in place, the cost of producing additional copies is typically just the cost of distribution, which can be quite low. Low marginal costs are important because they allow companies to scale their production and distribution without incurring significant additional costs. This can be particularly beneficial for digital products and services, as they can be distributed over the Internet at a very low cost.
Scale economies-the more a business produces, the lower its cost per unit of production becomes. This is because certain costs can be spread over a larger number of units, such as fixed costs like rent, salaries, and equipment. For example, if a factory can produce 100 units of a product for $10,000 in fixed costs and $1,000 in variable costs, then the total cost per unit would be $110. However, if the factory can produce 1,000 units, the fixed costs of $10,000 can be spread over more units, and the total cost per unit would decrease to $20. This would result in a significant increase in profitability for the business.
Judgement is the best asset
our feelings can cloud our ability to make rational decisions. Emotions such as fear, anger, and excitement can be powerful motivators, but they can also lead us to make impulsive choices that may not be in our best interest in the long run. For example, an investor may be tempted to sell all of their stocks during a market crash out of fear, even though a more rational decision may be to hold onto some of their positions and wait for the market to recover. Similarly, an entrepreneur may be excited about a new product idea and rush to launch it without doing proper market research or testing, which could lead to failure. By keeping emotions in check, we can think more clearly and make better decisions. This is why many successful investors and entrepreneurs are often described as being unemotional or even robotic. They are able to detach themselves from their emotions and make decisions based on logic and reason.Of course, it’s important to note that emotions are a natural part of being human, and it’s not realistic to expect anyone to completely eliminate them from their decision-making process. However, by being aware of how our emotions can impact our judgment, we can strive to make more rational decisions and minimize the influence of our feelings.
One book that I will recommend to help you in this is-
Your identity is your differentiation
The phrase “Escape competition through authenticity” means that by being true to oneself, a person can stand out and differentiate themselves in a way that is difficult for others to replicate. Instead of trying to copy others or compete with them, a person should focus on their unique strengths, interests, and experiences. This can help them find their own path and create something that is truly original.
This approach is important because trying to compete with others can be stressful, demotivating, and ultimately counterproductive. It can lead to a race to the bottom, where everyone is trying to outdo each other on price or features, rather than creating something that is truly valuable and meaningful.
In contrast, by focusing on authenticity, a person can tap into their own creativity and passion, and create something that is truly unique and valuable. This can help them stand out from the crowd, and create something that is not only successful but also fulfilling and meaningful.
Find 3 hobbies
One that makes you money, one that makes you fit, and one that makes you smarter. An example would be blogging, trekking, and reading. These 3 hobbies will buy you time, life, and wellness. The key 3 things required for happiness. One more essential thing is to choose the money-making hobbies on the basis of this diagram -
This is from the book?Ikigai?.Check it out to become a better version of yourself
Keep Learning
The one thing that I would take from this podcast is to keep learning, stay curious, and keep hustling to create a perfect version of myself. Eventually, wealth comes to value providers and not stealers. So focus on giving and the receiving will be taken care of
What next
Thinking to talk about why everyone should create a LinkedIn newsletter and how it helped me till now. Till then see YOU in the next one