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What I’ve learned from Naval on wealth

    1. “So, my definition of wealth is much more businesses and assets that can earn while you sleep.”

    2. Specific knowledge

    It reminds me of the concept of skill stacking by Adams Scott.

    The idea is to develop your expertise in few areas you are talented and interested in. The combination of these skills is what makes you unique on the market.

    The more those skills are complex to learn, are gained by experience, reflections, and self-learning, the more valuable they are.

    “Specific knowledge cannot be taught, but it can be learned.”

    “When I talk about specific knowledge, I mean figure out what you were doing as a kid or teenager almost effortlessly.”

    3. The specific knowledge of Naval

    "I have some sales skills, which is a form of specific knowledge.

    I have some analytical skills on how to make money. And I have this ability to absorb data, obsess about it, and break it down—that is a specific skill that I have. I also love tinkering with technology. And all of this stuff feels like play to me, but it looks like work to others."

    4. Long term game with long term people

    “All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest.”

    “The most important skill for getting rich is becoming a perpetual learner.”

    5. Take accountability

    "There’s not really that much to fear in terms of failure, and so people should take on a lot more accountability than they do."

    So what?

    Even if you failed, you rarely risked your life.

    Naval defends the idea that it’s worth taking the accountability and the risks.

    When he started to go public with his personal philosophy, people around told him that he will lose his entrepreneur’s credibility. He took risks, put his name out. Today his internet popularity has become a big asset.

    I often see people thinking too much about risks associated with new opportunities. They often miss the train.

    6. Build or buy equity in a business

    "If you don’t own a piece of a business, you don’t have a path towards financial freedom."

    My way to do it. A lazy and easy one is to enter the market as a long term investor using ETF (exchange traded funds) as a tool.

    7. Leverage

    “Fortunes require leverage. Business leverage comes from capital, people, and products with no marginal cost of replication.”

    "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."

    8. Run uphill

    "Take always the most difficult path

    short term suffering, long term gain"

    How do you recognize which path? It’s difficult to start but you always feel better after.
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