The Almanack of Naval Ravikant

Getting rich is about knowing what to do, who to do it with, and when to do it. It is much more about understanding than purely hard work. Yes, hard work matters, and you can’t skimp on it. But it has to be directed in the right way.

Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.

You’re not going to get rich renting out your time. You must own equity—a piece of a business—to gain your financial freedom.

Pick an industry where you can play long-term games with long-term people.

Don’t partner with cynics and pessimists. Their beliefs are self-fulfilling.

Learn to sell. Learn to build. If you can do both, you will be unstoppable.

Arm yourself with specific knowledge, accountability, and leverage.

Specific knowledge is knowledge you cannot be trained for. If society can train you, it can train someone else and replace you.

Specific knowledge is found by pursuing your genuine curiosity and passion rather than whatever is hot right now.

Building specific knowledge will feel like play to you but will look like work to others.

When specific knowledge is taught, it’s through apprenticeships, not schools.

Specific knowledge is often highly technical or creative. It cannot be outsourced or automated.

Embrace accountability, and take business risks under your own name. Society will reward you with responsibility, equity, and leverage.

“Give me a lever long enough and a place to stand, and I will move the earth.”

“Give me a lever long enough and a place to stand, and I will move the earth.” —Archimedes

Code and media are permissionless leverage. They’re the leverage behind the newly rich. You can create software and media that works for you while you sleep.

Leverage is a force multiplier for your judgment.

There is no skill called “business.” Avoid business magazines and business classes.

Reading is faster than listening. Doing is faster than watching.

Work as hard as you can. Even though who you work with and what you work on are more important than how hard you work.

Become the best in the world at what you do. Keep redefining what you do until this is true.

but the better part of a decade may be figuring out what you can uniquely provide.

Technology democratizes consumption but consolidates production. The best person in the world at anything gets to do it for everyone.

No one can compete with you on being you. Most of life is a search for who and what needs you the most.

“Escape competition through authenticity.” Basically, when you’re competing with people, it’s because you’re copying them. It’s because you’re trying to do the same thing. But every human is different. Don’t copy.

The best jobs are neither decreed nor degreed. They are creative expressions of continuous learners in free markets.

It’s much more important today to be able to become an expert in a brand-new field in nine to twelve months than to have studied the “right” thing a long time ago.

Intentions don’t matter. Actions do. That’s why being ethical is hard.

99% of effort is wasted.

When you find the right thing to do, when you find the right people to work with, invest deeply.

I say this because you should be very thoughtful and realize in most things (relationships, work, even in learning) what you’re trying to do is find the thing you can go all-in on to earn compound interest.

you should be very thoughtful and realize in most things (relationships, work, even in learning) what you’re trying to do is find the thing you can go all-in on to earn compound interest.

When you’re dating, the instant you know this relationship is not going to be the one that leads to marriage, you should probably move on.

when you find the 1 percent of your discipline which will not be wasted, which you’ll be able to invest in for the rest of your life and has meaning to you—go all-in and forget about the rest.

But usually, the real wealth is created by starting your own companies or even by investing. In an investment firm, they’re buying equity. These are the routes to wealth. It doesn’t come through the hours. [78]

If it entertains you now but will bore you someday, it’s a distraction. Keep looking.