🦉Turning $1M Into $1B+: A Masterclass From The Indian Warren Buffett and much more
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Turning $1M Into $1B+: A Masterclass From The Indian Warren Buffett - Mohnish Pabrai
Being better at business will make you a better investor, and vice versa. Your brain uses the same part for either activity.
Your brain is the fastest-growing organ for the first five years of your life. Then, from age 11-20, your brain starts to specialize. Unfortunately, our education system doesn’t recognize this.
Stories about Warren Buffet that you have probably never heard. His first business was called Stable Boy Selections, where he provided tips on race track bets at Ak-Sar-Ben Race Track (Nebraska spelled backward). His second business venture was fixing scrapped pinball machines (leveraging his friend Don Danly, a mechanically inclined tinkerer). Warren and his tinkerer friend created a company called Wilson Coin Amusement Company, run by a fictitious Mr. Wilson, who employed these two 15-year-olds to place these pin bowl machines in barber shops at 50-50 split. They scaled this business to 40 barber shops. Warren and Don also fixed up a beat up Rolls Royce they purchased for $300 and put in $50 to fix it. They rented this car for weddings at $100 on the weekends and drove to high school in
Mohnish Pabrai's investment philosophy: Heads I win, Tails I don’t lose much: Look for things where the odds are asymmetrically in your favor. This goes for people and investing. Look for these in industries that are hated and unloved. Mohnish is considering investing in coal at the minute.
For 99% of humans, investing in long-term Index funds is the way to go. Unless you have the talent, experience, and patience to analyze what a business is worth, buy them way below their worth and hold them for a long time.
#1 trait of being a good investor is patience. If you can sit and watch the paint dry, you will make a good investor.
Compounding is the 8th wonder of the world. Here are the three variables that matter when it comes to compounding. 1. The starting capital. 2. Annualized returns 3. Length of the runway
When you own (even partially) a small, profitable, stable business, find something else to do with your time and let this investment mature. The biggest decision Berkshire & Hathaway made was never to sell their good bets like Coke and See's Candies.
Trouble is opportunity. Always look for what is hated and unloved. There lies the opportunity.
Read this book if you are interested in investing.
Charlie Munger's biggest teaching is 'Be useful to others, selflessly.'’
See's Candies was one of the most crucial purchases for Berkshire & Hathaway. They paid 25 million, which has turned into billions and enabled Berkshire & Hathaway to invest in Coke. See's Candies also taught Warren Buffet and Charlie Munger the importance of branding. They raised See's candy prices by over 10% year over year and met with no resistance from the consumer because of a strong brand-based demand.
Better entrepreneurs know how to minimize risk.
Ideas are like assholes; everyone has one. It’s the implementation that matters. You can tell your competitor all your trade secrets, but it won't elicit any behavioral change because that requires action, and action is uncomfortable.
Charlie Munger recommended that you be a harsh judge of people's character. Don't waste your time if the person is not exceptionally better than you. Only cultivate deep friendships with people who are exceptional.
According to Adam Grant, There are three types of humans - Givers, Takers, and Matchers. You should seek out to be a giver and seek out the givers. The Universe always conspires to help the givers. The best way to get everything is not to ask for it. Focus on giving instead.
Did you know?
What country nods to say no?
There are few exceptions, with some countries swapping the meanings between nodding and shaking head: in Greece, Macedonia, Bulgaria, and Albania, a single nod of the head up (not down) indicates a "no”.
Category - Health & Wellness
Episode: Dr. Gary Steinberg - How to improve brain health and offset neurodegeneration
Podcast episode length: 1 hour 55 mins
A stroke is a heart attack of the brain. 85% of strokes are due to a clot. 13% are caused by hemorrhage (bursting of a blood artery or vessel)
Smoking and hypertension both increase the chance of stroke.
Neurosurgery is not as invasive. A skilled neurosurgeon can go through the groin and reverse the catheter into a very specific region of the brain. There are focus beams (cyber knives) and lasers to make precise entries.
Electrodes can be placed in the brain to treat Parkinson’s, epilepsy, and pain from neuralgia.
To avoid having a stroke, limit your consumption of alcohol (0-2 drinks per week is ok) and avoid consuming drugs such as cocaine, heroin, etc.
In rare instances, neck manipulation by a chiropractor can rupture an artery, resulting in a clot/stroke.
Vagus Nerve stimulation, coupled with physical therapy and the use of stem cells, can regenerate brain tissue after a stroke or injury. This was previously thought to be impossible. The 'dead' tissue can be regenerated.
Stem cells release extra proteins and modulate the immune system, resulting in healing.
Lowering the body temperature by 1-3 degrees can protect the brain post-injury.
Podcast episode length: 1 hour 35 minutes
Humans are machines designed to have grandchildren and spread our genes by helping our kin survive.
Studies show that identical twins feel the strongest attachment and emotions towards each other compared to regular siblings. It comes down to identical physical features that make them relate more deeply.
Humans are hard-wired to like and prefer people with similar interests and physical features. In addition, different accents act as a primal marker for differences in culture and, therefore, create distance, caution, or potentially a dislike.
Some differences between men and women:
Most men are sexually interested in women and vice versa. This is the physics of sex for our species, but we take it for granted.
The desire for sexual variety, frequency of sex, and casual sex.
Face-to-face aggression and violence
Parental inclinations
Sexual infidelity and jealousy (would you rather your girlfriend have casual sex with someone once or fall in love with another person? Emotionally, there is a difference, and men and women react to each differently)
Men are more conscious of infidelity (No mother has ever given birth to a child and wondered if that was her baby; men mostly do whether they like to admit it or not)
Humans are one of the few species that have recreational sex.
Environmental security hypothesis: Studies have shown that men are more attracted to thinner women when the economy is thriving and heavier women when the economy is struggling (the rationale is that heavier women can withstand a famine if needed).
The number of divorces recorded in the year Charles Darwin was born was 4.
The size of male testes indicates the potential sperm count in a male and the propensity for reproduction.
Evolutionary biology gives us the option and freedom to choose our destiny by proving that we aren’t simply doomed and destined by our genes. We can influence our trajectory by controlling our environment and, thus, our choices.
John Toby’s crumbling genome theory of population claims that modern technology and medical advancement are rescuing genomes that would not have survived in the past. So, nature’s compensation or mutation is to create other ways to slow down or eradicate gene replication. The theory claims mental disorders, declining sexual desire, and impotency are those mutations.
Category - Self Improvement & Lifestyle design
Episode 142 - Adopting a VC mindset: Achieve more by thinking and communicating like a Venture Capitalist - Ilya Strebulaev
Podcast episode length: 21 mins
VCs make faster and more efficient decisions by asking why we should not (in their case, invest). But this can be applied to any decision. This mental framework assumes you will proceed, which gets you a step closer to action already. So, if you can't detect any good reasons for not proceeding, you're already in action mode, which creates excitement and momentum.
You should Implement these 3 VC ideas:
1. Say No more often.
2. Think long term.
3. Think differently by questioning the existing definitions and assumptions
To create excitement about a topic, use familiar terms and combine them with new terms and ideas. This combines familiarity with novelty which will make people feel comfortable and curious.
Invest in building a diverse network - outside your current domain or industry.
Effective communicators convey the simple truths. Don’t overcomplicate your message.
3 ingredients to effective communication - Listen, Listen and Listen.
Learn more about the Venture Mindset.
Episode: Be Necessary with war journalist Sebastian Junger
Podcast episode length: 40 minutes
When you truly understand how fragile life is, you will make the most of the time you have.
How well would you do in real adversity, high-risk, life-or-death situations? For thousands of years, humans have been proving this to themselves. With modern comforts, humans don’t get tested. This is a problem. The remedy is to challenge yourself and put yourself in difficult positions intentionally. Do a hard workout. Have a hard conversation.
Are you necessary? Humans desire to be a part of something meaningful. That is why soldiers miss combat. Perhaps it's not the combat; it’s the camaraderie they miss, the idea of being a part of something bigger and worth fighting for. Each person's contribution holds a deeper meaning. Each person is needed. How can you cultivate a purpose and meaning? Example: Your purpose can be to provide financial freedom to your family. Be a role model to your children. Work 10/week for a local charity with a worthy cause. Help teach underprivileged kids in your community.
Cultivate skills and capacity that make you valuable and necessary to the people around you. Be useful and dependable. This will bring you honor, joy, and fulfillment - things you cannot buy.
Category - Productivity & Business
Episode : Peak Energy - Set smart priorities for success
Podcast episode length: 44 minutes
Key productivity philosophies:
1. Happy people are productive people.
2. One tweak can lead to massive productivity gains.
3. Your systems should be simple and actionable.
You will be more productive when you manage your time, energy, and attention (TEA).
Determine whether you are a night owl or an early riser. Align your most important tasks around times when you feel energized and creative.
Move around in between tasks to create more energy.
Take dedicated breaks where you physically walk away from work - unplug.
Create automated gaps between meetings using apps such as Outlook or Calendly. These gaps will provide time to mentally prepare for the next meeting rather than exhausting yourself from a meeting marathon.
Deep questions with Cal Newport
Episode 301: Reclaiming time and focus with Jordan Harbinger
Podcast episode length: 1 hour 33 minutes
Slow productivity: Aim to produce high-quality stuff over long periods of time
Committing to doing less things does not mean you are doing less with your life. You are controlling the admin overhead that comes with every Yes you say. So, by saying No, you are creating more time to invest in things that really matter.
Switching between tasks is less efficient for your brain than doing one task at a time. So, don't try to work on your next presentation; answer emails simultaneously. It’s the equivalent of an athlete taking Tequila shots every ten minutes during a game.
Be known for protecting your time instead of saying Yes to any project thrown your way.
Category - Relationships & Love
Category - Relationships & Love
458: When expectations are not met
Podcast duration: 46 minutes
What should you do when your partner is not what you expected? Start by writing down what behaviors are creating this perception. For example, you always have to ask them to do certain things (take the garbage out or put away the dishes etc.)
Realize that you are comparing these expectations to your family. You had a 20+ year runway with your family to establish behavioral expectations. So, you probably don’t even remember working through the same friction with them. So, I shouldn’t have to ask you to do X is not a rational expectation early on in the relationship.
Communicate your expectations clearly. Ask your partner how they fell about your asks and if they need something from you. For example, you want them to pick up the kids every Thursday. Would they like a reminder on Wednesday?
Tell your partner what you like or dislike clearly, then reinforce it. If you like being hugged while cooking, tell your partner. If they hug you while cooking, tell them you liked it. This will reinforce that behavior.
I hope this was helpful.
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Much Love
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