The Naval Podcast -Judgment Is the Decisive Skill in an Age of Infinite Leverage

Check out Naval’s Episode Page & Show Notes

This podcast clip is part of a conversation between Naval Ravikant (@naval) and Babak Nivi (@nivi). Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.

Key Takeaways

  • First aim to get leverage, and once you have leverage – your judgement becomes the most important skill
    • How do you get leverage?
      • Get it permisionlessly – learn to code, create podcasts, become a good writer
      • Through permission – get people to work for you, or raise capital
    • “All the great fortunes are created through leverage”
  • In high leverage positions (like a CEO), most of the time you’re paid based on your judgement ability
  • Definitions:
    • Wisdom is knowing the long-term consequences of your actions
    • Judgement is wisdom on a personal domain (wisdom applied to external problems)
  • True judgement ability comes from experience
    • “Intellect without any experience is often worse than useless”
      • You get the confidence that intellect gives you along with some credibility, but because you had no skin in the game and no real experience….”you’re just throwing darts”
  • The people with the best judgment are actually among the least emotional
    • “The thing that prevents you from seeing what’s actually happening are your emotions; our emotions are constantly clouding our judgment” 
  • Let’s sum up:
    • First you’re accountable for your judgement
    • Judgement is the exercise of wisdom
    • Wisdom come from experience
    • That experience can be accelerated through short iterations
  • “Investment books are sort of the worst place to learn about investment”
    • To get good at investing, you need broad-based judgement and thinking – the best way to obtain this is to study everything (including a lot of philosophy)
      • Philosophy makes you more stoic/less emotional and more likely to make better decisions (so you have better judgement)
  • The more outraged somebody gets, the worse their judgment probably is
    • “If someone’s constantly tweeting political outrage and seems like an angry person, you don’t want to hand them the keys to your car let alone the keys to your company”

These notes were edited by RoRoPa Editing Services

Bookmark
Facebooktwitterredditmail