Hi Readers,
Today I’m going to write one of my favourite blogs on this website about. What I’ve learnt from billionaires from studying their working and living ways. And what are the five essential lessons that I am attempting to practise in my own life in order to increase my wealth.
I’m not preoccupied with becoming a billionaire, but there are some ideas and procedures that I’m attempting to implement in my own life that will help me to get wealthier and live a more satisfying life. I’m going to summarise some of the fundamental themes that these billionaires have utilised to build their fortunes. Furthermore, if you want to increase your wealth, upscaling is arguably the most important thing you can do.I continuously telling you on this channel that you need to improve your skills. You may get the book “21 Success Secrets of Self-Made Billionaires.” It’s a fantastic novel.
1. Asymmetric Risk
Now, the first thing I’ve learnt from billionaires is to take asymmetric risks in life. This is a topic I’ve already discussed. But let me illustrate this notion by using Elon Musk as an example. Here’s a terrific quote by Elon Musk that I’d like to share with you. According to the Elon Musk, “My profits from PayPal takeover were $180,000,000. And $100 million was invested in SpaceX, $70 million in Tesla, and $10 million in SolarCity. I had to borrow money to pay my rent.” Now, if we look at the attitude of these billionaires, such as Elon Musk, we can see that they do take this type of risk. It seemed insane to us. I would not have taken such a risk in my life if I had $180,000,000. But here’s Elon, who made $180 million and spent it all in developing new firms. This is the idea behind asymmetric risk. So let us immediately grasp it. In layman’s terms, asymmetric risk means that you incur very high risks and receive extremely high benefits in certain areas of your life.
For example, you will typically see billionaires begin their business path at a young age. They improve their risk-taking abilities with time. They keep taking chances.Little by little, they aggregate gain confidence and they end up building this mindset of taking asymmetric risks also.
So you will see people like Elon Musk betting on some new age investment instruments. You will see people like Jeff Bezos going and starting like very audacious ideas. You will see people like Bill Gates trying to tackle the world’s most difficult diseases and problems that are plaguing the entire world. So this is what is meant by asymmetric risks. The risks are also super high and the rewards are also super high. Now you asked me the question that how can we develop this system? Now I’m no expert but I can at least share my perspective and what I am doing. So I’m doing three things.
First thing is that I’m attempting to apply this asymmetric risk strategy in a tiny quantum. So, for example, if I’m investing ten lakh rupees, I’ll probably keep one lakh for investing in a somewhat higher risk asset. This is not, by the way, investment advice. This is exactly what I’m doing.
Similarly, Second if I have to wait in my career possibilities and am in a corporate position, I will attempt to do a little more risk work over the weekend and start a side hustle alongside that corporate job. The notion is that by taking these little, incremental steps over time, I will gradually gain confidence. This is the most crucial factor. It’s not like you and I will win $180,000 in the lotto tomorrow. We’ll end up investing all of that money, like Elon Musk, in a variety of different businesses. We simply cannot do it. We don’t have that kind of risk tolerance. Even risk-aversion develops with time. This is an extremely essential topic.
Third, if you go talk to someone who starts firms or is creative, they are generally bursting with ideas. For example, anytime I go out and talk to a co-worker, they are constantly full of fresh ideas. They will have 10 thoughts flying through their heads and will say, If this specific initiative fails, I’ll go on to option B, C, or D. So they have options B, C, and D and they recognise that they are continuously thinking creatively about it. So, to summarise the first argument, if Elon Musk had lost that $180,000,000 and Tesla and SpaceX had not worked out, I can nearly guarantee that he would have thought out something new. Why? Because he learnt to take chances over time. He gradually gained confidence in his ability to complete tasks.
And, third, he understood instinctively that he was super-creative and would come up with fantastic ideas and execution methods.
2. Very at ease with uncertainty
This gets us to the second lesson, which is that billionaires are at ease with uncertainty. This is a critical issue, and it is summarised in this line from Steve Jobs. So allow me to read this to you. According to Steve Jobs, “I mistakenly picked a College that was almost as expensive as Stanford, and all of my working-class parents’ money were squandered on my College expenses. I couldn’t see the point after six months. I didn’t know what I wanted to do with my life. So I chose to withdraw and believe that everything will work out.” So, what are some of the most important things you can learn? So we can obviously see from this chat that Steve Jobs was an extremely positive person. Number two, he was at ease with uncertainty. One of the most important things to note is acceptance. We all have questions in college, such as, “What happens if I don’t find a job after studying?” IIT, Delhi or Bombay? What will I do if I do not receive a high package? Will I be able to do something significant with my life? So the bottom line is that many of us, including myself, are occasionally conditioned in such a way that, you know what? Consider the worst-case situation. That is not the way you approach anything in life, especially in this day and age when there are so many alternatives. So you shouldn’t be afraid to ask, “What if I put my money in the stock market?” What will happen if I lose everything? No. Study it, comprehend it, invest in it, and then wait and see. Similarly, if I don’t go for placement and instead try to develop my own business, I have a wonderful concept, but I’m not really sure. What happens if that start-up fails? So, what will I do? Why are you having negative thoughts? You should not be pessimistic, but rather enthusiastic, and we should be at ease with ambiguity. Let me simply speak about uncertainty without presenting this message. Uncertainty simply means that nothing is certain to happen. Unfortunately or thankfully, we live in a world where nothing is ever certain.
So there are three things I can recommend to help you become more adept at dealing with ambiguity.
One is to improve your critical thinking skills. Simply said, critical thinking indicates that if you have an idea, you must examine if that concept will work or not, for example, I will make and sell this pen. Consider seriously why this proposal will be successful or fail. For example, the competition may be fierce. So, what are you going to do to beat this competition? That is a component of critical thinking. Similarly, you must consider the entire process. Critical thinking also implies that you have a firm grasp on objectively assessing your own strengths and flaws. So you’d know it, you know what I mean? I’m attempting to start a business. I’m not good at marketing. So give me a chance to figure out how to address that problem. So being impartial and having the capacity to think critically are quite crucial. It enables you to cope with uncertainty.
Second, you must be positive because your brain will believe anything you tell it. For example, if you tell your brain that you know what, I will never be able to dead lift 85 kg, you will never be able to achieve it. You will not even attempt it by putting on your shoes and standing in front of a barbell. However, if you teach your brain, condition it, practise it, and remain hopeful, you may make little steps forward and that seemingly impossible objective may become attainable.
Finally, I refer to it as the safety net hypothesis. Simply put, safety net theory states that once you comprehend that you know what, I have X amount in my bank account, now I can go ahead and start taking more and more chances. So you’ve made a safety net. Now I’m not sure what that X value should be. You should do your own reasonable analysis and see some of my previous films where I have discussed it. To make a lengthy tale short, You must have some form of safety net in place in your profession, both financially and otherwise. It will allow you greater flexibility to deal with this uncertainty since 99.99 percent of individuals will not have the bravery to drop out of college, start a profession, and become so successful as Steve Jobs did.
3. Concentrated thought
The third thing I’ve learnt from billionaires is to keep things simple in your life and in your thoughts. This is something that Gandhiji even suggested. So I’m simply expanding on that concept and conveying it to you in a commercial environment. What do you notice when you look at a diverse group of people, such as Sri Ratan Tata or Mr. Narayan Murthy in India? They are quite basic folks. Even if you travel overseas and look at Bill Gates or Mark Zuckerberg, what exactly are they? They are not outgoing. They are simple folks that are focused on their characteristics. They are focused on what they are attempting to establish, attain, or accomplish in their lives. They are not there to brag. It’s OK for some YouTube influencers and if your livelihood depends on it, such as in Bollywood, where you have to be showy, or if your career depends on it. So, just to give you an example, if you go to YouTube, there is a Ferrari man. I’m not going to tell you his name right now. You must have seen his commercial. Isn’t that a flashy lifestyle? If it were your life, you’d know what I’m going to show my Ferrari-people and start charging them lauki and lacks for my course. That is called a profession. However, the vast majority of millionaires do not work in this field. They take a basic approach. And if you’re doing intellectual work or aren’t really in the influencer game, you don’t have to be showy. If you are straightforward, you may concentrate on expanding your skill set as well as your traits and talents in order to gain more money. I now have a more full life, among other benefits. One basic strategy that has helped me to become slightly more uncomplicated in my life and cut out fluff, so to speak, is to narrow down the decisions that I have to make with regard to energy. Mark Zuckerberg taught me a few techniques that have really aided in the simplification of my life.
4. Self-assured and Contrarian:
The fourth key is that you must be confident and contrarian. Mark Cuban is a typical example in this regard. Now, Mark Cuban is a millionaire headquartered in the United States, and I respect him for his philosophy and thought process, as well as his ability to stand firm and be a contrarian in life. So allow me to give you two instances. Now, Mark Cuban was one of the first billionaires to enter the cryptocurrency field, backing a slew of NFT-based ventures. He’s also a Polygonmatic investor in the India blockchain area. He discusses Dodge Coin, Shiba Coin, and how he teaches his son about finance by asking him to invest in these types of assets. He received a lot of flak for it, but he stayed firm because he realises that if youngsters can have fun while investing, those notions would likely stick with them. As a result, he tried using these assets to instruct his children. So that is also a parenting lesson for me. That if you believe something is truly beneficial to your child and it is supported by logic, you must go ahead and do it. Some simple theory is that if you don’t know what you desire, the world will tell you. The majority of the time, we end up choosing something we don’t love, which may not be a very healthy way of spending your life. So, just because you are a contrarian does not mean you are incorrect; as long as your contrarianism or capacity to think differently than others is supported by logic, basic analysis, and logical reasoning, it is perfectly fine for you to stand apart from the herd. Similarly to what Mark Cuban does, the third thing I’ve learned from billionaires is what’s known as long-term thinking super important, one of the most essential skills I’ve learned as an entrepreneur. And this is really effectively summarised by the passage regarding Jeff Bezos. So Jeff Bezos claims that when he has a nice quarterly conference call with Wall Street, people will come up to him and say, “Congratulations on your quarter.” And I’d want to thank you. But what I’m thinking is that that quarter was three years ago. Bezos, for example, stated that he and his team are now working on a quarter that would be revealed in 2023. So this post was written in 2022. So he figures at least three years ahead.
When you lead a corporation with a market cap of more than a trillion dollars, like Amazon, Facebook, Apple, you need to having this long-term thinking approach helps organisations focus on planning and where they should put their energy, according to Bezos. This is such an essential statement because every billionaire who has gotten to that stage has done so by thinking long term and foregoing short-term gains. For example, most of the time in our corporate jobs, we are preoccupied with the next promotion and then we are done. That is what surrounds our lives. The following promotion. Then I’ll go on to the next step in my career. So we go from promotion to promotion in our careers. Most people may not find it gratifying. As a result, it is critical to consider the long term as well. So, how do you put that into practise? So I’ll call it carrying two objectives at the same time. One large aim and one little aim. For example, if you are attempting to carry two large objectives simultaneously, For example, I will also drop 30 KG and clear the exam. In addition, I will prepare and clear it. Also, because there is so much rivalry like Bitcoin, that is a pretty lofty ambition. Furthermore, logically speaking, dropping 30kg in a year is really difficult. So there are two major objectives. A better strategy would be to carry one large objective and one modest goal. That might be a significant objective.
Okay, three years from now, I’m going to clean it and do whatever I need to accomplish at that time. And my minor objective would be to reduce carbohydrates. Isn’t that it? So I’m going to limit my carb intake as much as possible. That is a straightforward aim. Instead of two bowls of rice, I’m going to have one bowl of rice. That’s all. That is what you do. So it’s an easier method to execute that doesn’t deplete your will power too much because when we choose two extremely heavy goals and attempt to execute both at the same time, we fail, we feel super-stressed, our will power gives out, and we end up reaching neither of those goals.As a result, if we practise this one large goal, one modest goal technique over time, we become more strategic thinkers and begin to think in a broader time horizon.
5. Long-term thinking capacity
So, to summarise five particular things discussed today, the first is to take asymmetric risks like Elon Musk. Number two, like Steve Jobs, you should be good with ambiguity. Sri. Ratan Tata is ranked third. Mr. Narayan Murthy, you should simplify your lifestyle so that you can focus on your Trait in the majority of occasions. Fourth, be confident and contrarian, like Mark Cuban, and fifth, cultivate the capacity to think long term, like Jeff Bezos.
Conclusion:
As conclusion, asymmetric risk means that you incur very high risks and receive extremely high benefits in certain areas of your life. Billionaires begin their business path at a young age. They improve their risk-taking abilities with time. And they build this mindset of taking asymmetric risks also. Steve Jobs was an extremely positive person, and very at ease with uncertainty.
Entrepreneurs should not be afraid to ask, “What if I put my money in the stock market?”. What will happen if I lose everything? Study it, comprehend it, invest in it, and then wait and see. One of the key things I’ve learnt from billionaires is to keep things simple in your life and in your thoughts. Being impartial and having the capacity to think critically are quite crucial. The fourth key is that you must be confident and contrarian – self-assured and confident.
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