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Working through @jackbutcher& #39;s Build Once Sell Twice.
I have hundreds of takeaways, but one idea is burnt into my grey matter.
Equity and dividends.
[Thread]
I have hundreds of takeaways, but one idea is burnt into my grey matter.
Equity and dividends.
[Thread]
It& #39;s easy to measure relative success by looking at dollars flowing in.
More dollars in and we think we must be on the right track.
But dollars in is a lagging indicator, not a leading indicator.
More dollars in and we think we must be on the right track.
But dollars in is a lagging indicator, not a leading indicator.
Cash compensation is the last step in a long process of building equity.
It& #39;s an extraction of dividends from the equity we& #39;ve built up in the past.
This equity comes in the form of:
• Experience
• Credibility
• Connections
• Reputation
And this equity compounds quickly.
It& #39;s an extraction of dividends from the equity we& #39;ve built up in the past.
This equity comes in the form of:
• Experience
• Credibility
• Connections
• Reputation
And this equity compounds quickly.
But this equity is hard to see.
There& #39;s no objective "measure" of experience, credibility, etc.
But dollars are objective.
So in gauging a project or opportunity, we underweight the "compensation" of experience, credibility, and connections, and overweight the dollar amount.
There& #39;s no objective "measure" of experience, credibility, etc.
But dollars are objective.
So in gauging a project or opportunity, we underweight the "compensation" of experience, credibility, and connections, and overweight the dollar amount.
But this is short-sited.
Experience, credibility, connections, and reputation compound much faster than dollars compound.
But by extracting dividends (cash) too early, we interrupt a much more powerful compounding.
Experience, credibility, connections, and reputation compound much faster than dollars compound.
But by extracting dividends (cash) too early, we interrupt a much more powerful compounding.
This is way easier said than done.
Thinking this way - prioritizing experience, credibility, connections, and reputation - is 21st-century arbitrage.
Since others struggle to see this, it& #39;s a market inefficiency.
Exploit that inefficiency.
Thinking this way - prioritizing experience, credibility, connections, and reputation - is 21st-century arbitrage.
Since others struggle to see this, it& #39;s a market inefficiency.
Exploit that inefficiency.
I& #39;m working on a larger thread with more of my takeaways, but I just had to share this one.
Because now that I& #39;ve seen it, I can& #39;t unsee it.
Everything on Jack& #39;s website is 10% off until Friday.
It& #39;s the best investment I& #39;ve made in 2020. https://shop.visualizevalue.com/ ">https://shop.visualizevalue.com/">...
Because now that I& #39;ve seen it, I can& #39;t unsee it.
Everything on Jack& #39;s website is 10% off until Friday.
It& #39;s the best investment I& #39;ve made in 2020. https://shop.visualizevalue.com/ ">https://shop.visualizevalue.com/">...
