The Almanack of Naval Ravikant | Eric Jorgenson on Infinite Loops

Check out Infinite Loops Episode Page and Show Notes

Key Takeaways

  • 1% of your effort can determine 99% of your results
    • One decision, such as investing in Uber, can determine 99% of your wealth
    • One decision, such as who to marry, can determine 99% of your happiness
  • Intentions don’t matter, only action does
    • We judge ourselves by our intentions but others by their actions. That disconnect is the source of a lot of problems.
  • The 40-hour workweek is outdated
    • People with high leverage jobs (designers, coders, investors) will get paid more on their performance than the number of hours worked
  • Create things that you only need to make once but you can sell to a near-infinite amount of people
    • Write a book, record a podcast, create a trading-algorithm, etc.
    • With these products, there’s a zero cost-margin to sell it to the next person
  • People who avoid risk or accountability won’t build wealth
    • “If you aren’t willing to take the risk, you shouldn’t take the upside” – Eric Jorgenson
  • When it comes to IQ, there’s little difference between 140 and 145
    • If you get to 170 or above, the chances of mental illness skyrockets
      • It would be better to have a slightly lower IQ and be happier than be a genius but unhappy

Intro

Books Mentioned

Who Is Naval Ravikant?

  • Naval immigrated from India and lived in New York as a kid
    • He went to Dartmouth and has been in the tech industry ever since
  • Naval is known for his Twitter account and podcast appearances

Eric’s Book: The Almanack of Naval Ravikant

  • Eric has spent two years creating the book The Almanack of Naval Ravikant
    • He researched Naval’s writings from the past 10 years and condensed a million words down to 50,000
      • The book covers two topics: wealth and happiness
  • Everything in the book comes from Naval
    • “Everything is directly from Naval, as close as I could get it with minor editing to make reading easy and feel personal” – Eric Jorgenson
  • How did Eric get the idea for this book?
    • He wrote a tweet asking if people were interested in a book about Naval one day and Naval retweeted it. Eric woke up and saw the post had over 5,000 people saying yes.

Lessons From Naval

  • 1% of your effort can determine 99% of your results
    • One decision, such as investing in Uber, can determine 99% of your wealth
    • One decision, such as who to marry, can determine 99% of your happiness
  • Intentions don’t matter, only action does
    • We judge ourselves by our intentions but others by their actions. That disconnect is the source of a lot of problems.
      • “We’re geniuses in seeing the flaws in everyone else and we are blind, deaf, and dumb in trying to see them in ourselves “ – Jim O’Shaughnessy
  • The 40-hour workweek is outdated
    • We’ll see more and more people being paid by their output instead of their inputs
      • People with high leverage jobs (designers, coders, investors) will get paid more on their performance than the number of hours worked
  • Create things that you only need to make once but you can sell to a near-infinite amount of people
    • Write a book, record a podcast, create a trading-algorithm, etc.
      • With these products, there’s a zero cost-margin to sell it to the next person
  • People who avoid risk or accountability won’t build wealth
    • “If you aren’t willing to take the risk, you shouldn’t take the upside” – Eric Jorgenson

Being Too Smart Can Backfire

  • When it comes to IQ, there’s little difference between 140 and 145
    • If you get to 170 or above, the chances of mental illness skyrockets
      • It would be better to have a slightly lower IQ and be happier than be a genius but unhappy
  • Our brains get around 100,000 bits of data every second but it screens almost all of it out because if it didn’t we would go crazy
    • A lot of people with schizophrenia have really high IQs but they have a filter failure and experience information-overload
      • Jim’s relative has an extremely high IQ but suffers from schizophrenia

Play > Work

  • Stop relying on willpower, especially if it’s for doing something you hate
  • You want to find activities in life where it doesn’t feel like work, it feels like play
    • Some people like Jamie and Jim find reading 10-Ks fun, others don’t
      • If you find a job that feels more like play than work, you’ll excel at it and enjoy it much more
  • Similarly, education is most effective when it’s also entertaining 

Additional Notes

  • Preference falsification is the act of communicating a preference that differs from one’s true preference
    • E.g: A lot of people said they wouldn’t vote for Trump because they didn’t want to admit it publicly but most Americans ended up voting for him
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Notes By Alex Wiec

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