How to get rich Flashcards
Wealth
Businesses or assets that earn while you sleep - a positive-sum game (not zero-sum)
What is the purpose of wealth?
To provide freedom
Money
How we transfer wealth (e.g. debits and credits); IOUs from society
Two games people play
Money game and status game
Status
Ranking in the social hierarchy - zero-sum game (e.g. politics, sports)
Capitalism
The exchange between humans (information, money, etc) that is natural to the human species
Takers and makers
Need more makers to make an organism (or economy, or country) to work
How to get rich?
Inputs don’t match outputs; outputs exceed inputs; use tools and leverage to create the disconnection between inputs and outputs
The fundamental property of the internet
It connects everyone to everyone (it’s superpower)
Work with people that are ‘hii’ in 3 key areas
High energy (obsession), intelligence (skills), integrity (signals)
Skills needed to get rich
Specific knowledge, accountability, leverage, judgment, life long learning (specific knowledge that you care about; found by pursuing the things that you’re really curious about and naturally good at)
Accountability
Reputational skin in the game
What is a network effect?
When each additional user adds value to the existing user base (e.g. language)
Wisdom
Knowing the long-term consequences of your actions
Judgment
Wisdom applied to external problems
