There should always be a delay between the time you do something, and when you get paid for the work you did. That means you’ve created an asset or product or invested capital that’s making money for you. What you want to avoid is exchanging your time directly for an hourly wage. As Nassim Nicholas Taleb says, “If someone pays you for anything other than a specific transaction, you are a slave.”
Read MoreIf you’ve played around with OpenAI’s ChatGPT or Dall-E programs, you know that the “robot army” has arrived to carry out your orders. But now, you don’t even have to speak their “language” to control them. Text-based interfaces allow you to give instructions in your language, and the artificial intelligence will carry it out in theirs. The days of having to learn how to code are quickly disappearing - just give good prompts, get good results. And when everyone has infinite leverage, your judgment and taste are what matter.
Read MoreThe world is flush with quick dopamine. You can make a TikTok video in minutes and get thousands of views in seconds. A Twitter thread that took you ten minutes to write can go viral with millions of impressions overnight. And it feels really good. It becomes brutally hard to stick with things that take much longer. But that’s where the real competitive advantage lives. When you do things that take years, not days, you compound your efforts with small, incremental gains, and immediately escape competition from anyone with a shorter time horizon. The longer it takes to do, the larger the competitive advantage in doing it.
Read MoreThere is no easy way to build wealth. If there were, everyone would already be rich. As Charlie Munger says: “It’s not supposed to be easy. Anyone who finds it easy is stupid.” There are no shortcuts. Every “get rich quick” scheme gets the person selling the scheme rich, not you. Stop cutting corners and start focusing on creating value instead. Start compounding small amounts of money and skill and watch it grow for decades.
Read MoreIf you are young, inexperienced, and have no idea where to start your wealth creation journey, then great. You have the best chance of getting rich.
Read MoreWealth is not an end in itself. What money buys is the freedom of your time to design a lifestyle you love. We are all here for such a short time - years pass in the blink of an eye. Don’t spend your life chasing more wealth than you need for the sake of making money. Get paid, then cash out.
Read MoreCreativity isn’t an exact science. The best work doesn’t happen on command and when you try and push to make it happen, the work often falls flat. That’s why you should always try and sell your creativity by the execution, not by the hour. When you charge by the hour, it eliminates the magic AND you’re often giving the exponential upside of the project to someone else. Own your upside and keep the magic alive.
Read MoreIf you want to get wealthy, you have to create value AND expose yourself to the upside of the value you create. Most people who work a 9-5 job create value in their position. But they’re usually not paid proportionally to the value they create. If they were, the employer wouldn’t make any money off the employee and the work they do. The key to wealth is simple: create value, then capture it.
Read MoreDrop servicing is the practice of selling a service to a customer for a certain price (say $100). Then hiring someone else to provide the service for the client at a lower price ($50), and pocketing the difference.
Read MoreTo build wealth, you want to expose yourself to situations where uncertainty (unpredictability) is a positive force for you, not a negative one. You want to make bets in areas where surprises push to the upside because of positive Black Swan events.
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