Thread Review: How to get rich (without getting lucky) by Naval Ravikant (@naval)

Naval Ravikant (@Naval) 

Wealth creation is a process and not an event. This is one of the dictums that the thread is aimed at underpinning while disputing with the vice versa. It is a process that involves being tactical, owning equity, hard work, building specific knowledge and leverage. Published on twitter back in May 2018,  the thread also serves to draw a clear and thick line between success and wealth creation that has confounded the majority. Truth to tell, this thread is such a quick-fix-mentality dismantler.

Many of the dogmas in this thread are sure-fire and incontrovertibly veritable since they have been echoed by a divergent number of writers over the years.

Concomitant to being a quick-fix-mentality dismantler, the thread serves as a reminder that employment is not slavery where a man pays you to build his dream forgetting yours, but a means of applying the specific knowledge built to generate money that is then used to transfer wealth. One of the tweets read, “…Build a specific knowledge and leverage on it with accountability. Business means capital, and capital means money. To get it, sell the specific knowledge that you have built”

After the introduction, Ravinkat goes straight to the point by drawing a thick line between wealth, money and social strata. In his words, wealth is having assets that earn money while asleep. This resonates with the definition that Robert Kiyosaki gave in his book, rich dad poor dad, that assets are any items that bring money your way, contrary to the definition given by the school teacher. Money, predominantly confused as wealth, is a means by which we transfer time and wealth while status is the place one occupies in the social hierarchy. This is a major eye-opener.

Wealth is having assets that earn while you sleep (@vaval)

Here are the individual tweets in the thread in regard to Wealth, Equity, leverage, tactics and specific skills:

Wealth, Money and Status 
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 position in the social hierarchy.

Understand that ethical wealth creation is possible. If you secretly despise wealth it will elude you.

You may also like how to deal with the cash crunch

Tactics
Play iterated games. All the returns in life, whether in wealth, relationship or knowledge come from compound interest.

Pick business partners with high intelligence, energy and above all, integrity.

Do not partner with cynics and pessimists/ their beliefs are self-fulfilling.
Learn to build, learn to earn. If you can do both then you will be unstoppable.

Understand that ethical wealth creation is possible. If you secretly despise wealth it will elude you. (@naval)

Equity 
You are not going to get rich by renting out your time. You must own equity- a piece of a business- to gain financial freedom.

You will get rich by giving society what it wants but does not yet know how to get it, 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, so unfortunate that most people have not figured this out yet.

Specific Knowledge

Arm yourself with specific knowledge, accountability and leverage.

Specific knowledge is the knowledge that is cannot be trained for. If society can train you then it means 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.

The only time the specific knowledge is taught is through apprenticeship and not in school. It is highly creative and technical, rarely outsourced or automated.


Leverage

Capital means money. To raise money, apply your specific knowledge with accountability and show resulting good judgement.

Capital and labour 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.

Code and media are permissionless leverage. They are the leverage behind the newly rich. You can create software and media that works for you while you sleep.

Fortunes require leverage. Business leverage comes from capital, people and products with no marginal cost of replication (code and media)

Judgement requires experience but can be built faster by learning foundational skills.
Leverage is a force multiplier for your judgement.

If you cannot code, write books and blogs, record videos and podcasts.
Labour means people working for you.

Share on Google Plus

About Jesse Mugambi

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.