Hey RRs! Sumitra Ladia. Let us continue our discussion on the book ‘The Almanack of Naval Ravikant’ by Eric Jorgenson. Today, we will discuss the chapter ‘Building Judgment’ of Part-1: Wealth.
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The first part is titled ‘Judgment’.
Judgment is the wisdom of knowing the consequences of our actions. Accordingly, we should take decisions after analyzing their long-term impact. The hard work and the time we invest into something is not as important as the judgment we make.
Playlist - Ch-1 to 6 - • The Almanack of Naval ...
The next part is ‘How to Think Clearly’.
According to the author, smart people think clearly and have their basic concepts really strong. In fact, the smartest people can explain things to a child as they know their concepts from the fundamental level. Once our basics are clear, we can go on to rederive the tougher concepts from them.
Man, generally is unable to see reality because of the preconceived notions we have about certain things. Since the monkey mind is devoid of sense and judgment, it will always react to things in the way we usually see them. For example, if we are convinced that our business is doing well, we will tend to ignore any negative signs. And when suddenly our business faces a downfall, we will suffer huge losses.
Thus, it is very important to accept the reality, face the truth, and accordingly make meaningful change and progress. Let's not keep ourselves away from reality. However, we must keep our ego aside if we wish to embrace the truth. The smaller our ego is, the easier it will be to embrace reality.
In order to think clearly, one needs to take out time and space. Let's not feel hesitant to take a day off from work when we don’t have to bother with schedules and meetings. This is the time we can keep to ourselves for thinking properly and making wise decisions and judgments.
The next part is ‘Shed Your Identity to See Reality’.
Our habits accumulated as a whole build us and our identity. The author thinks that creating identities keeps us away from seeing the truth. So, it is wiser to shed such an identity that doesn’t let us accept the real world unfiltered.
Suffering in the long term can teach two very valuable lessons. The first is that it can make us accept the world as it is. The second is that it can make our ego change in a harder way.
The next part is ‘Learn the Skills of Decision-Making’.
Decision making is an art and we must learn it to the core. If we can make right decisions 80 percent of the time as compared to someone who makes right decisions 70 percent of the time, there are high chances we will be able to earn far better than that person.
The next part is ‘Collect Mental Models’.
If we don’t have the ability to make good judgments, an easier way out is to eliminate the wrong judgments. After all, it is about avoiding incorrect judgments.
The principal-agent relationship in every business is worth discussing. When we feel we are the principal, we will take the effort to do our work better.
While taking a particular decision, if we realize that we are unable to make a choice, the answer is simply no. If we are skeptical about selecting a career field or choosing a life partner, the answer is no. This is because the world is huge and there are tons of options available for us. So, the answer should be yes only and only if we are pretty certain about our choice.
If we have two choices which are relatively equal, we should take the path which seems more difficult in the short run. This is because the one which looks easy in the beginning will give us pain in the long term.
The next part is ‘Learn to Love to Read’.
Let's get into the habit of reading. If we don’t like the idea of reading a new book every month, let's just re-read our favorite books that inspire us every time we read them. Eventually, we will absorb the ideas of the books. Let's not force ourselves to read for an hour every day.
Key takeaways from the chapter are:
1. Hard work and talent has no substitute so let's not stop learning and brushing our skills.
2. While hard work is overrated, making the right judgment is underrated. Let's learn to make informed choices.
3. In order to understand difficult concepts, let's get our basic concepts in place first.
4. Let's not our monkey mind fall prey to societal norms and notions.
5. Let's learn to accept our reality.
6. Our habits build our identity
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