A lot of the people I follow/pay attention to on the Internet were talking about Navalmanack this week. Essentially, the book is a curation of the thoughts of Naval Ravikant, founder of AngelList, who is revered as a kind of wisdom-dispensing guru in Silicon Valley.
One chapter stood out to me in particular, mostly because it’s something I already spend a lot of time thinking about. The tweet that inspired the chapter is: If you don’t own a piece of a business, you don’t have a path towards financial freedom.
The chapter makes the argument that even traditionally highly paid careers (medicine, law, etc.) amount to essentially trading time for money. Alternatively, owning a business (or piece of a business) is a way of separating your inputs from your outputs. Your equity in a business can earn while you’re sleeping. This equity could be in the form of stocks or owning an actual company.
Even if you love what you do, I think this is a useful mental model for understanding part of how the market works. And is also a big part of the reason why I encourage everyone I can to start investing. To quote Naval, ownership is important.
Pete’s Picks ✅
YouTube channel: I heard about the channel Primitive Technology on a podcast and have enjoyed quite a few videos thus far. John, the host, shows how to build primitive structures and tools like huts, kilns, stoves, bricks, etc.
Newsletter: I signed up for the trial of Trends and have been blown away so far. Trends is the premium offering from The Hustle and is full of, well, trends and also industry deep dives, databases, and interviews. If you’re at all interested in business, this is for you.