Naval Ravikant - The Most Important Skill to Become Successful [w/ Charlie Munger]

It's packed with 23 Nuggets from top Influential Doers and Entrepreneurs (in their own words), 🎆 visuals (to make it super easy to understand), and my own 💭 reflections.

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Naval comments on what he believes is the most important skill in modern world --- The ability to call decisions from a good judgement process. Big positive outcomes come from having the right judgement and using some sort of leverage (human, capital, code, media). Because of the constant and exponential technological advancement, leverage is ever increasing, and thus good judgement becomes ever increasingly important going forward into the future!

We will listen to Naval and Charlie how we can go about developing the right judgement that we need to thrive in whatever we do.

Enjoy!

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NAVAL -------------------

- Decision-making is everything

- Good Judgement + Leverage -- Huge Output (non-linear returns)

- In the modern world, leverage is ever increasing (modern tech, large workforces and more capital)

* So If you can be more right, more rational (improve judgement) --- you will get big non-linear returns in life

- The Brain -- Memory Prediction Machine -- It tries to predict the future based on what it knows from the past
** But this is a lousy way of predicting the future (coz circumstances change)

- To deal with this fact, we need to develop principles / mental models.

- Naval's best mental models come from...
• Evolution
• Game Theory
• Charlie Munger (source for tons of mental models)
** Charlie mentions we ought to operate from a "latticework of mental models"
• Nassim Taleb
• Benjamin Franklin

- We are fundamentally ignorant and have a limited prediction capability
• * A way to deal with the limits of our knowledge -- is to not try to predict what's gonna work, but rather realize what's not going to work (easier to do) and eliminate it!
** Being Successful is about knowing and avoiding the incorrect judgements.

- Mental Model's applications:
• In trusting someone
• Odds of something working out -- And how is the payout / downside relation?
• * e.g./ In Venture Capital -- The Upside is non-linear whereas the downside is capped at the initial investment.

- Set up systems, instead of Goals.
"You do not rise to the level of your goals. You fall to the level of your systems." - James Clear

- Good Judgement (from Mental Models) -- Creation of an Optimized System -- Higher odds of Success

- "I want to be the most successful version of me, while working the least hard possible"

- Once you set up good systems, the individual decision don't matter that much.

- From the pool of successful people, there are two types:
• The ones that have been consistently successful
• the ones that have had the one big hit to success.

- Money has huge "diminishing returns" (term very common in Microeconomics) after a certain point
• Thus, the billionaires has essentially overshot.
•* And that overshot, can decrease your inner freedom.

CHARLIE MUNGER --------

Learn all the big ideas in all the big disciplines (result: development of Mental Models)

Have a disciplinary approach. And practice what you learn. If you don't practice, you forget.

Marcus Tallus Cicero - "A man who doesn't know what happened before he is born, goes through life like a child"

Develop a mental latticework (of multiple models) in your head

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#NavalRavikant #CharlieMunger #SuccessSkill

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[abhinavshrivastava]

Its called approach of microanalysis...if we are able to explain consequences of our each action and behavior we can control/improve many things.

[twistedspine]

One of the rare times I disagree with Naval, because I believe the greatest investors do build wealth on picking individual businesses and betting with high conviction, but I recognize the significant amount of humility and wisdom in an approach that does its best to avoids large mistakes rather than always trying to hit a home run. He found what works for him, which is a lot of small bets hoping for one outsized return.

[WisdomGuide]

I really love your content. Thanks for organising the information .

[yourdailyremindertonotwast]

The summary in the description box is very much appreciated!

[dodolelela]

Thank you for the elaborated content! Personally you have helped me a lot

[Ramesh__V]

Thanks a lot for putting a lot of effort into organizing these videos.

[ii]

Thank you and Keep up the amazing work!

[pfuhad]

Thank you for posting this . Can you name the podcast the audio is extracted from (Naval)

[cambodianriverpig]

The most important skill to become successful is to be born in an already successful family. That's the story of 99.9% of all successful guys you see on tv.

[amdistant]

Make a youtube video of other people's videos and claim their insights as your video's insights. Pure Garbage !!