Tag “success”

How to get rich by Naval: a summary of the podcast and tweet storm ★

Last week I discovered the Naval podcast’s episode on how to get rich and wrote a summary of it. The episode is 3,5 hours long, so if you’re short on time, read this summary to get core ideas and tenets of this conversation.

There’s also a transcript of the episode on Naval’s website. But to me it also seems to be too long to absorb.

On wealth and money

Wealth is about independence and freedom. Wealth is creating abundance. It’s a positive-sum game.

Status is a ranking hierarchy. It’s a zero-sum game. Status games are about putting someone down. Don’t play them.

Money is social credits. It’s how we transfer wealth.

Everyone can be wealthy. It’s literally a question of education and desire.

Creating wealth should be consistent. Create opportunities, businesses, investments. Wealth is about having more options, more businesses and more things you can do and compound in the long-term.

Wealth is bounded with a skillset, it has nothing to do with luck. Build your character and make it become your destiny. That’s what people call “luck”.

Calm mind, fit body, a house full of love. Those things can’t be bought. You have to cultivate them and work on them. Your health, mental health, your relationships.

On building wealth

Extreme people get extreme results. You can’t be normal and expect normal returns.

You won’t get rich by putting in more hours of work or working for someone. It’s not the way to build wealth. Inputs equal outputs.

When you work for someone you’re not creating anything new for society, you’re replaceable.

Ways to get wealthy are to buy equity or to start a business.

The higher level of creativity in your profession the more likely it will have disconnected inputs and outputs, and more leverage.

The most dangerous things are heroine and monthly salary. They’re similarly very addictive. Live below your means.

Play stupid games, get stupid prizes.

To get rich give society what it wants but yet don’t know how to get that at scale. But don’t build one thing, build many: hundreds, thousands, etc.

Entrepreneurship is about distributing what rich people used to have to everybody. It’s an act of creating smth new from scratch, predicting society will want it, and then figuring out how to scale it and deliver it to everybody in a profitable way and self-sustaining.

Escape competition with authenticity. When you’re competing with someone that’s because you’re copying them. You’re trying to do the same.

Don’t copy, don’t imitate. Do your own thing. No one can compete with you on being you. The more authentic you’re the less competition you’re gonna have.

Play long-term games with long-term people. In this case we’re baking a pie together. In short-term game we’re cutting the pie.

Pick an industry for the long-term work to compound the results. Get traction and don’t let go.

Every time you reset, you will have to start from scratch. Hopping from one sphere to another is not a good idea.

The purpose of having wealth (money) is that money allows you not to be in a particular place at a particular time to do things you don’t want to do. Money solves all your money problem.

You really have to be right once. As an entrepreneur you fire many shots, but you really need to get right once.

Eventually you get what you deserve. Immediate doesn’t work. You have put it hours and time before you see a significant results. Keep doing and keep doing and don’t track hours, time and energy you’ve put in. It can easily be 10−20 years. Five years is an exception. There are no get rich quick schemes.

Your outcome formula might look like this: distinctiveness of your specific knowledge x how much leverage you can apply to that knowledge x how often your judgement is correct x how singularly accountable you are for the outcome x how much society values what you’re doing x how long you can keep doing it and improving through reading and learning. [Sketch it out as a math equation]

Don’t lean on the data too much. You’re better off picking the one biggest thing. Ask yourself what is it I am good at according to the observation and according to people that I trust and that market values? Those two variables are good enough to get you going. And if you’re good at it you’ll keep it up. And if you’re good at it you’ll develop the judgement. And if you’re good at it people will give you resources. All other pieces will fall in place. Market place is inevitable if you do what you love doing and the market wants it.

On relations with people

Pick smart, energetic and those who have a high integrity partners. Both in personal life and at work.
True motivation is intrinsic. You can’t talk people into something if they don’t have it in them.

Signals are what people do despite what they say. And subtle signals are the most important. People are ugly consistent.

Find irrationally ethic people. Be a rational optimist and partner with this kind of people. Shoot holes and things as long as they come with solutions.

Self-esteem is a reputation you have within yourself. High self-esteem is about loving up to high moral standards for yourself, not for someone else.

On learning

Not everything can be taught, but everything can be learned.

Arm yourself with specific knowledge. It’s about pursuing your innate talents, passion and curiosity. It’s not about going to school.

Learn to sell and to build. Combine of that is a huge superpower. This combination is unstoppable.

Building is about staying out of the noise. When you’re starting out, choose building. But later down the line it’s getting exhausting, because building requires a lot of focus. But sales skill is scaling better over time.

I don’t know smart people who don’t read. They read all the time. Develop love for reading. For many of you it can feel like a chore. So here’s a trick: read what you love until you love to read. It’s that simple.

Read original, foundational books in the field you’re interested in. Nail basics of math, physics, and science. After that you won’t be afraid of any other books. It’s like laying a foundation for a skyscraper. It must be solid.

Today it’s not the means of learning is what scarce. Internet has an abundance of knowledge and information. It’s the desire that is scarce. And we lose it through life. As children we have innate curiosity, we ask lots of questions. But schools replace it with compliance. You need creativity to learn and find novelty. The foundation of learning is math and logic. They are the path to understanding a scientific method. It’s the way to separate truth from false.

Be careful reading other people’s opinions. Even be more careful about reading facts. Many so called facts are just opinions with a veneer around them. What you are looking for are principles and algorithms, not facts.

Go through a book slowly. As Bruce Lee said, “I don’t fear a man who knows thousand kicks and thousand punches. I fear the man who’s practiced one punch a thousand times.” It’s an understanding that comes through repetition, usage, logic and foundation is what really makes you a smart thinker.

Five most important things to learn in life are: reading, writing, arithmetic, persuasion (talking), computer programming. If you’re good at those things you’re set for life.

Business is not a skill. It’s too broad. And the worse way to learn doing business is to go to a business school. All you get there are anecdotes which they call case studies. The truth is that you never can understand them until you’re in the position of those who’ve had that experience. The foundations will serve you so much better.

Reading is the best way to learn fast. Not listening or watching. With podcasts and videos it’s hard to rewind, revisit, turn into a summary, or even quote.

You’re going to learn on the job by opening a retail shop down the street.

Putting a thousand of hours doing one this is a misinterpretation of learning. Repeating things won’t teach you that much. Whereas putting is a thousand iterations makes the difference. Learning curve is across iterations. Trying new things, strategies, packages, branding, fonts, design, positioning—all that are iterations.

There are no get rich quick schemes. If someone promises and sells you a way to get rich quick they’re making money of you. It’s their quick way to get rich quick, not yours.

You don’t want to learn how to be fit from a fat person. You don’t want to learn how to be happy from a depressed person. You don’t want to learn how to be rich from a person who makes their money by telling other people how to be rich. These people should go make their money elsewhere.

On work

Your work should feel like play to you and look like work to others.

Just do the thing you want to do. Have an action bias. Think big.

Focus on the thing you’re really into. Follow your own obsession. Build things naturally, don’t try to do them too deliberately, for money.

Double down on things you’re natural at. Combine them with other your skills.

Starting over and doing something new is painful. Because you’re wandering an uncertain territory and high odds that you will fail. So it’s a good skill to be comfortable with frequent small failures.

Entrepreneurs are people who bleed a little every day. They’re losing money, they’re constantly under the stress, all the responsibility is upon them. But when they win they win big. On average they’ll make more.

My hourly rate was 5,000 $.

If you can outsource or don’t do things that cost less than your hourly rate, don’t do them. Hire other people, delegate and outsource it.

Paul Graham: you should be working in your product, finding a market for, exercising, and eating healthy food. That’s it.

You should set an absurdly high hourly rate so it would be worth sacrificing your time to other people.
Work as hard as you can. Pick the right thing to work on, hire the right people for that job, then work hard.

Decide what you should be working on
Surround with the best people possible to work with
Work as hard as you can in the end

Sprint, rest, reassess, and then you try again. It’s more like a lion hunting, not a marathon. Maybe a marathon of sprints.

Inspiration is perishable. Do it right away while it’s burning.

Have impatience with actions and have patience with results.

Solve problems as soon as possible.

On meetings

No meetings on the calendar: ruthlessly and constantly decline meetings. If someone wants a meeting, see if they can do it on a phone call, or an email, or a text message.

Do walking or standing meetings, also they should be short and certain.

Busy calendar and busy mind will destroy your ability to build something valuable in this world. You need a free time and free mind.

On accountability

Accountability is a risky, double edged thing. It allows you to get credit when things go well, and bear the brunt of the failure when things go badly. People who’re stamping their names on things aren’t foolish, they’re just confident.

Society says to us, “Don't stick your neck out is what.” We’re still socially hard-wired to not fail in public under our own names. But people who have an ability to do that gain a lot of power.

Clear accountability is important. It gives incentives to act and allows to avoid situation we all experience at school on a group projects when few people did most of the work and other members of the group were simply sitting there and doing nothing. Besides, accountability gives you equity, it’s the way to acquire a piece of the business.

High accountability means you’re less likely to be replaced by AI or more competent people. It also gives you equity. But equity also is a risk based instrument. It means you’re paid the last.

On leverage

To get rich you need leverage. It comes in capital, labor, media or code. To get those things you need credibility and you have to do that under your name as much as possible.

Oldest form of leverage is labor. We assume the more people is beneath you the better. But labor is the worst form of leverage you can use. Managing other people is messy, it requires a tremendous leadership skills. You want a minimum amount of people working with you.

Capital is the second type of leverage. It requires more intelligence to use and get results as the way we use capital is constantly changing. We dislike capital as we don’t really know how to be about it. It seems unfair to us. It scales very well if you learn how to manage it, but the hard part about it is to obtain it in the first place.

Apps that has no marginal cost of replication is a new form of leverage. It got started with a printing press. Now you can multiply your efforts without help of other humans and without needing money from other humans. This podcast is a form of leverage. Long ago I had to sit a lecture room and reach 20−50 people max. Today thousands of people can listen to what I say and it would me cost nothing.

Combining different leverages is where the magic hides. That’s you see tech startups skyrocketing.

The great thing about code or media leverages is that they are permissionless. You can start using them without asking anyone for a permission. Coding, writing books, recording podcasts, tweeting, youtubing are equalizing. Products created with this new kinds of leverage are equally available to everybody and they’re great at scaling as there’s no marginal cost for adding another user.

The largest budgets get the highest quality.

Productize yourself. Turn your specific knowledge into a product. Turn yourself into a product. This newsletter is called after me so I am productizing myself with this emails. Ask yourself is it authentic to who I am? Is it myself that I am projecting? Am I productizing it? Am I scaling it with labour, with capital, with media?
Making money isn’t a skill, it’s who you are stamped out a million times.

Making should be a function of your identity and what you like to do. Find three hobbies: one that makes you money, one that makes you fit, and one that makes you smarter. My hobbies would be reading, working with startups, and yoga.

On advice

You have to reject most of advice. But to do that you have to read and listen enough to learn what to reject and what to accept. You have to develop your own opinion and vision. If something doesn’t feel true to you set it down, put it aside.

Purpose of advice is different. Those are maxims to remind yourself what it really means to be in the situations you describe in the advice. Write advice for yourself. They are mental hooks. For example I tweeted someday: “If you don’t want to work with someone for life, don’t work with them for a day”. As soon as I know that I don’t see myself working with that person 10 years from now I start excavating myself from that relationship or just not to invest too much time and attention into them. Advice is a compact ways to recall your own knowledge.

QA section

  • Accountability means letting people criticize you.
  • We should eventually be working for ourselves. Manage more capital, media, and community, not a labor.
  • Evil do better at a smaller organizations than at larger ones.
  • Find time to invest in yourself. Learn something people didn’t figure out how to teach it yet.
  • The hardest thing for any founder is to find people who will work with them who have a founder mentality. This is a fancy way of saying they care enough.
  • You can get a lot out of any position you just have to put a lot into it first.
  • Judgement, accountability, specific knowledge, leverage — five components of success.
  • Early on find things you have any interest and take an accountability to offer help and a solution. If you solve a hard problem taking an accountability, people will line up behind you, the leverage will come.
  • Judgement and accountability matter much more today than the amount of hours put in.
  • Accountability is a double edged sword. If you get things right people will admire and follow you. If you get things wrong people will blame you and would love to see your head on a spike (metaphorically).

Questions to ask yourself

Here’s a list of questions to ask yourself after listening to the episode:

  1. What is my specific knowledge? What is innate talent? What should I double down on doing?
  2. Who am I? What’s natural for me to do? What is the thing I am the best at?
  3. What is the thing I want to build naturally?
  4. What does it mean to be me?
  5. What am I capable of doing? What will I do for my wife, my kids, my parents? How far will I go?

How to make a great interview

No one likes taking part in a dull, predictable conversation. No one likes watching boring interviews. But all of us enjoy interviews that accidentally turn into an argument or that make us feel good about ourselves. The best way to do that is to ask thought-provoking and insightful questions such as:

  • What did you feel when your father passed away? How would you describe that feeling?
  • Why you didn’t leave the country after those events? What impact did this decision have on you?
  • What’s your attitude to those who thinks this way? Do you agree they should be…

You got the idea. Thought-provoking questions are necessary if you want your interview to be engaging and memorable both for your guest and your audience. Here’s how they contribute to that.

Thought-provoking questions:

  1. Help you stand out among other interviewers.
  2. May lead to a series of questions and topics you didn’t expect to arise.
  3. Make the interviewee look good or put them on the spot instead.

These types of questions spice things up and put your interviewee on a spot. It shouldn’t necessarily be an open conflict, but it should be provocative and hard to answer right away. Easy questions have no challenge for the interviewee. So this is one way to use those questions: create a small conflict and push the buttons that may lead to a debate.

Though there’s another way to use thought-provoking questions. Put the interviewee in a spot where they can express their opinion and prove their expertise and status. Give them the green light to show their best side. That’s why people do interviews: to build their media platform, to share their ideas with a new audience, and to feed their ego.

It’s totally fine to use insightful questions to make your hero look good in the eyes of their followers. Their answers will also make their audience feel smart, valued, and honored.

Note-taking is the key to consistent writing

Let me share two principles that help me write consistently and be abundant: write everything down and keep it simple. Let’s look at them closer.

Write everything down. It’s a fundamental principle of my writing process. I guess nothing gave such a boost to my writing as building a habit of taking notes. There are three reasons for doing that:

  1. Taking notes frees up the space for new ideas in your head. Since I’d begun writing down all the ideas that crossed my mind, the more new thoughts started coming in. My wife often observe me rushing to my desk from the bed to write down the idea that arose in my head before sleep.
  2. Writing ideas down helps to structure the knowledge and experience you’ve gained. Writing and deconstructing things I’ve learned was the easiest way to understand them much deeper and turn them into simple but efficient management principles. No video or audio can do so. Writing is the only creative process that implies analysis.
  3. Writing is the fastest and cheapest way to share your knowledge with others. Videos and podcasts require many additional skills and postproduction, while writing doesn’t take much time and energy to convey a message. Also reading is a natural way to get the idea, while a video or a podcast doesn’t allow you to skip a part of it without losing the context or some important details.

Keep it simple. I’m talking about note-taking, of course. I know that some of you may have a tendency to hunt for a new super powerful all-in-one perfect application that would empower you to start taking notes. I’ve been down that road. That’s a self-deception.

Dump this idea. Don’t wait for the perfect tool. It won’t make a difference to the world, but your writing may.

You already have a note app on your phone. It already has hashtags, folders, headings, bullet points, etc. You don’t need a list of unique features to make a grocery list, same goes for ideas. All you need is to start writing them down.

The simpler your note-taking process is, the better. I use standard Notes by Apple to jot down my thoughts. It’s enough to capture the idea that came to me and make the first draft so I could forget about it and move on. Any app that has autosave, folders, hashtags, and cloud sync will work.

This is how my note-taking system looks like

To sum up:

  • Write down all ideas that cross your mind
  • Take notes so you could forget and get back later to edit them
  • Keep your note-taking system simple
  • Use a standard app that is aimed at getting the job done
  • Use hashtags for topics and folders for projects

The next time you’re going to write something on social media, open you notes, pick one topic and simply edit this. No need to write from scratch anymore, you will always have a list of ideas to go with.

How to deal with failure and reduce the stress it brings ★

It’s been three days since my wife and I returned home from a short trip to Ufa, the capital city of Bashkortostan. It was our first trip together in six months, so we were expecting it like never before.

We did all we could to make this trip joyful and pleasant: booked a good four-star hotel, asked our friends to recommend us good restaurants and cafes, and made a list of places to visit and local food we should try. However, everything that could go wrong went wrong on that trip.

The mishaps started right after we arrived. We planned this short vacation a month ago to get to the concert of Pompeya, a Russian indie-rock band that sings in English. The organization was so bad that there was a cram. As the gig started, soon my wife and I were squeezed between two flows of people like rye in the windmill. So, we had to leave and listened the rest of the show from the distance.

For the next two days, bad luck followed us. Everywhere we went we encountered indifference from waiters and baristas, rudeness from people in the street, and prying eyes of random passersby. In all the restaurants we visited the food was unsavory or cooked in some weird way. For example, in one place we were served an Italian pizza with dill, and in other cafe—a waiter brought eggs Benedict that were watery.

That’s how we felt during this trip at restaurants in Ufa

The city of Ufa is a nice place from an urban perspective: there are many parks and green cozy alleys, breathtaking landscapes, lots of old merchant houses, and unique local wooden architecture. But we didn’t have a chance to enjoy the city, because we didn’t feel welcome there.

Even though I can’t say our trip was a pleasant experience, we accepted it and tried our best to enjoy it anyway. As soon as we realized things weren’t going the way we wanted, we made up our minds to accept anything that would happen and live every moment as is, not trying to control the consequences of our choices.

We can’t control the outcomes

The only two things you can control in life are your perception of events and your attitude to the impact they have on your life. You have the power to make conclusions and decisions you think are best for you. But you can’t control the outcomes.

You can design a great process, tweak your mind to the right tune, thoroughly manage your daily routine, and still get the wrong result. It’s insane, but it happens every day. And when it does, it’s crucial to focus on the next attempt rather than the outcome you are aiming for.

I rewrote this post three times before I got it right

There’s no 100% working solution that will lead you to success. There are no magic pills. The previous experience that worked in the past can become a letdown or another pitfall in the present. The only reliable tactic is to keep trying and not be afraid of failure.

Failures always come with stress, and it’s a good thing. Stress kept our ancestors looking for a better place to settle. Stress and hunger kept them seeking an easier and more reliable way to get food—that's how livestock and crop production emerged.

Stress and failures are the essences of life, without them, we’d be extinct. So if you’re feeling stressed right now, that’s OK. You can’t completely remove stress from your life, but you can change your attitude toward it. Legitimize failures, let them be.

Babies are best at failing, and they don’t give a shit about it!

Think of a baby boy who learns to stand and walk. He doesn’t care if he falls a thousand times before he can stand holding onto the edge of his bed. He doesn’t give a shit! He keeps trying, and, in the end, he gets there. We are no different from them!

Another great example is people who run marathons. Marathoners don’t run a marathon on their first attempt. First, they run 1 km, then 2, someday they run 5. Then they run 10, 20, and only after years of training—a marathon. They don’t care much about failures, because it’s OK not to be capable of running 42 km from scratch.

Legitimizing failures is the healthiest way to handle stress. By changing your attitude to setbacks you can greatly reduce the amount of stress in life. This will release more time for new attempts and ideas, and allow you to see solutions that were unavailable to you before.

Pain is inevitable, suffering is optional. The same goes for failures and stress.

I kept writing (process) until I was satisfied with the final draft (outcome)

Accept failure when it comes your way. Never think you’d fail, but also never regret it when you do. Go forward, do your best, and never look back. Then it’ll be easy for you to start over as if nothing bad happened at all. That’s the best way to master the game. Any game.


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Failures are our best teachers ★

Yesterday I woke up at 5 a.m. and couldn’t sleep. Trying to fall asleep again, I caught myself ruminating the following words in my head: “Failures are our best teachers”. Suddenly the whole story started to unfold in my mind, so I jumped up, took my laptop and started typing it until I lost my train of thought.

Half an hour later, I had a draft about the benefits that failures and mistakes bring us. Thus was born this post and Twitter thread for Timestripe.

Failures are the best teachers. Here are eight reasons why:

  1. Mistakes increase importance of wins. Failures teach us so much more than any success could ever teach. If it weren’t for our failures we wouldn’t value our wins and achievements, because there wouldn’t be anything to measure or compare them by.
  2. Continuous success blinds us with illusions. Successful projects and positive outcomes are necessary, but they don’t teach us much. Instead, they make us get along with the idea that if it worked this time it will always work in the future. But it won’t. That’s a cognitive bias we get trapped into. Failures, on the other hand, teach us that if something didn’t work it didn’t work only here and now in this very conditions, in this context, on this project. It doesn’t mean it’s impossible or it won’t work some other time in some other place.
  3. Failures teach us patience. Having failed doesn’t mean we should stop trying. Failing at something teaches us to be patient and persistent about our approach. We learn to make projects and achieve results with a small steps strategy, not by making one perfect decision.
  4. Failing shows it’s OK to be wrong. It’s not the end of the world. Everyone makes mistakes. Even the great minds did. Why should we be perfect? There’s no need for that, no one expects that from us. We’re only expected to fulfill the commitments we’ve made. Nothing else.
  5. Mistakes encourage us to enhance our process. Failures help us discover the hidden power of limitations: time, money, and our physical capabilities. Any project has a limited amount of money and a deadline. Nor can we be productive six-eight hours in a row. Limitations help us find a solution within our available sources.
  6. Failures teach us to value the way, not the goals. Failures and limitations teach us to be flexible and not to put all our money and time on one great idea that will do all the work. Instead, we become more committed to consistency and methodicality rather than an occasional success. They matter more in the long run.
  7. Having failed doesn’t equal being bad at something. In the end, failures don’t define us as bad workers and contractors, or as being bad at our craft. They only mean that we chose the wrong way to solve the problem, and now we’re going to find another one until we find the right solution.
  8. To learn and improve you should be ready to fail. Writing this thread I recalled a good dialogue from “Game of thrones” that happened between Jon Snow and sir Davos Seaworth after Jon’s resurrection:

Jon: I did what I thought was right. And I got murdered for it. And now I’m back. Why?

Sir Davos: I don’t know. Maybe we’ll never know. What does it matter? You go on. You fight for as long as you can. You clean up as much of the shit as you can.

Jon: I don’t know how to do that. I thought I did, but… I failed.

Sir Davos: Good. Now go fail again.

If you’ve failed recently, don’t panic. Don’t stop dreaming, and don’t stop moving forward. Just go fail again.


This post was initially published as a thread on Twitter and in Timestripe Journal. Subscribe to Timestripe to receive new posts right into your inbox.

Multitasking sucks

There were times when I loved doing several things simultaneously. I could make a soup and at the same time discuss another website layout, write a newsletter and watch a TV show. Over time I’ve realized that multitasking almost always sucks, and here’s why.

  1. Only few people in this world can multitask and deliver great results. There’re almost none.
  2. The desire to complete two different things at one is a pathetic attempt to buy some time. Both are likely to be done badly.
  3. Multitasking is often used in the wrong places. It leads to mistakes, sometimes fatal.

To figure out when it’s okay to multitask and when it’s not, I follow a simple method.

If the task doesn’t require thinking and analyzing new information—cleaning, washing dishes, walking through the park—it can be combined with another activity. For example, I make half of my calls and team meetings on the go, because I can move my legs without thinking about it.

However, if the task requires you to immerse yourself into the topic, to constantly assess the situation, to watch for safety—meeting with a new client, playing basketball, or driving a car—you'd better put everything else on hold and focus. Otherwise, you might miss a crucial idea of the talk or get hit in the face with a ball. And if you’re checking your phone while driving or crossing the street, you may die eventually.

I’m not a fan of multitasking, and I hate it when it is mispresented as a criterion for success. But at the same time, I love variety. I enjoy running several projects at once, meeting new people every day, and visiting different cities. The variety is in the spice of life! It inspires me and gives me food for thought. But doing several tasks at once — fuck this. It’s highly likely to turn out to be bullshit.


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