Why do you say, “Get rich without getting lucky”?
In 1,000 parallel universes, you want to be wealthy in 999 of them. You don’t want to be wealthy in the fifty of them where you got lucky, so we want to factor luck out of it.
But getting lucky would help, right?
Just recently, Babak Nivi, my co-founder, and I were talking on Twitter about how one gets lucky, and there are really four kinds of luck we were talking about.
The first kind of luck is blind luck where one just gets lucky because something completely out of their control happened. This includes fortune, fate, etc.
Then, there’s luck through persistence, hard work, hustle, and motion. This is when you’re running around creating opportunities. You’re generating a lot of energy, you’re doing a lot to stir things up. It’s almost like mixing a petri dish or mixing a bunch of reagents and seeing what combines. You’re just generating enough force, hustle, and energy for luck to find you.
A third way is you become very good at spotting luck. If you are very skilled in a field, you will notice when a lucky break happens in your field, and other people who aren’t attuned to it won’t notice. So, you become sensitive to luck.
The last kind of luck is the weirdest, hardest kind, where you build a unique character, a unique brand, a unique mindset, which causes luck to find you.
For example, let’s say you’re the best person in the world at deep-sea diving. You’re known to take on deep-sea dives nobody else will even dare to attempt. By sheer luck, somebody finds a sunken treasure ship off the coast they can’t get to. Well, their luck just became your luck, because they’re going to come to you to get to the treasure, and you’re going to get paid for it.
This is an extreme example, but it shows how one person had blind luck finding the treasure. Them coming to you to extract it and give you half is not blind luck. You created your own luck. You put yourself in a position to capitalize on luck or to attract luck when nobody else created the opportunity for themselves. To get rich without getting lucky, we want to be deterministic. We don’t want to leave it to chance. [78]
Ways to get lucky:
• Hope luck finds you.
• Hustle until you stumble into it.
• Prepare the mind and be sensitive to chances others miss.
• Become the best at what you do. Refine what you do until this is true. Opportunity will seek you out. Luck becomes your destiny.
It starts becoming so deterministic, it stops being luck. The definition starts fading from luck to destiny. To summarize the fourth type: build your character in a certain way, then your character becomes your destiny.
One of the things I think is important to make money is having a reputation that makes people do deals through you. Remember the example of being a great diver where treasure hunters will come and give you a piece of the treasure for your diving skills.
If you are a trusted, reliable, high-integrity, long-term-thinking dealmaker, when other people want to do deals but don’t know how to do them in a trustworthy manner with strangers, they will literally approach you and give you a cut of the deal just because of the integrity and reputation you’ve built up.
Warren Buffett gets offered deals to buy companies, buy warrants, bail out banks, and do things other people can’t do because of his reputation. Of course, he has accountability on the line, and he has a strong brand on the line.
Your character and your reputation are things you can build, which will let you take advantage of opportunities other people may characterize as lucky, but you know it wasn’t luck. [78] My co-founder Nivi said, “In a long-term game, it seems that everybody is making each other rich. And in a short-term game, it seems like everybody is making themselves rich.”
I think that is a brilliant formulation. In a long-term game, it’s positive sum. We’re all baking the pie together. We’re trying to make it as big as possible. And in a short-term game, we’re cutting up the pie. [78]
How important is networking?
I think business networking is a complete waste of time. And I know there are people and companies popularizing this concept because it serves them and their business model well, but the reality is if you’re building something interesting, you will always have more people who will want to know you. Trying to build business relationships well in advance of doing business is a complete waste of time. I have a much more comfortable philosophy: “Be a maker who makes something interesting people want. Show your craft, practice your craft, and the right people will eventually find you.” [14]
And once you’ve met someone, how do you determine if you can trust someone? What signals do you pay attention to?
If someone is talking a lot about how honest they are, they’re probably dishonest. That is just a little telltale indicator I’ve learned. When someone spends too much time talking about their own values or they’re talking themselves up, they’re covering for something. [4]
Sharks eat well but live a life surrounded by sharks.
I have great people in my life who are extremely successful, very desirable (like everybody wants to be their friend), very smart. Yet, I’ve seen them do one or two things slightly not great to other people. The first time, I’ll say, “Hey, I don’t think you should do this to that other person. Not because you won’t get away with it. You will get away with it, but because it will hurt you in the end.”
Not in some cosmic, karma kind of way, but I believe deep down we all know who we are. You cannot hide anything from yourself. Your own failures are written within your psyche, and they are obvious to you. If you have too many of these moral shortcomings, you will not respect yourself. The worst outcome in this world is not having self-esteem. If you don’t love yourself, who will?
I think you just have to be very careful about doing things you are fundamentally not going to be proud of, because they will damage you. The first time someone acts this way, I will warn them. By the way, nobody changes. Then I just distance myself from them. I cut them out of my life. I just have this saying inside my head: “The closer you want to get to me, the better your values have to be.” [4]
