Judgment: Leverage is a force multiplier for judgment. Your first job is to obtain leverage. You can obtain leverage through permission – by taking risks, getting people to work for you, or by raising capital. Or you can do it permissionless by learning to code or learning to communicate effectively (podcast, writing, etc).
- Once you have leverage, you need to slow down a bit. You are carrying a bigger load. So not as nimble. So judgment becomes a more important skill.
- Warren Buffet is so wealthy due to his judgment. Nobody asks him how many hours he works.
- Everything else you do is actually setting you up to apply your judgment. Why CEO’s get paid more. Their judgment is more valuable. If you are steering a $100b company, slight differences in judgment (3% more return) is massive sums of money vs a $1m company.
- Credibility requires accountability.
- Wisdom is knowing the long-term effects of your decisions. Wisdom applied to external problems is judgment.
- Intellect without experience is not useful. Why people don’t like academics.
First you are accountable for your judgment, Judgment is the exercise of wisdom. Wisdom comes from experience. Experience can be accelerated through iterations.
Nobody is going to value you more than you value yourself. You have to apply an expensive hourly rate to your time. Even if the market doesn’t support it. Look at the things you do in that context. If you want to get rich, it has to be your #1 overwhelming desire. Meaning, it has to come before everything else.
- You can’t be penny pinching to get rich. Penny Pinching often costs too much time.
- If you can not do something – or hire someone for less than your mental hourly rate – do it.
- You can do this stuff for the ‘joy of doing it’. But you probably won’t be wealthy.
- Paul Graham: You should be working on building your product, getting product market fit, and eating healthy. That’s about all you have time for on this mission.
for a full transcript + podcast (worth the listen!!) = https://nav.al/rich