99% SUCCESSFUL People Think Like This - RICH Mindset ft. Sandeep Jethwani | FO 50 - Raj Shamani
Summary
TLDRIn this engaging discussion, the speaker delves into the concept of wealth, highlighting how a small percentage of people hold a significant portion of the country's wealth. The conversation explores the true meaning of wealth, emphasizing time freedom over material possessions. The speaker reflects on personal experiences with wealthy individuals and the importance of trust in wealth management. They also discuss India's economic phases, the shift towards wealth creation, and the role of expertise and compounding in building and retaining wealth. The conversation concludes with insights on the power of storytelling and future investment strategies.
Takeaways
- 🤔 Wealth is not just material possessions but the freedom to do what you want, when you want, without sacrificing personal time on things you dislike.
- 💼 The traditional FIRE (Financial Independence, Retire Early) movement is not about retirement but about the freedom to pursue passions and interests without work constraints.
- 💡 Wealthy individuals often have the luxury of time, which allows them to explore new ideas and opportunities without the pressure of a daily job.
- 📈 Wealth creation is about making enough money to buy out time for personal freedom and helping others do the same, fostering a collective creation mindset.
- 💰 The concept of wealth varies; for some, it's about having disposable income to invest in ventures that generate more wealth and opportunities.
- 🔑 Trust is a critical factor in wealth management; wealthy individuals often rely on experts to manage their finances due to the high stakes involved.
- 🌐 The compounding effect of trust, expertise, and consistent decision-making in favor of stakeholders is essential for long-term wealth retention and growth.
- 🚀 Embracing uncertainty and taking calculated risks are key traits of successful entrepreneurs and wealth creators.
- 🎯 The ability to envision and believe in a future-oriented story, like Tesla's impact on electric vehicles, can drive wealth creation through innovation and disruption.
- 📚 Education should focus on concepts like compounding and probability, which are vital for understanding wealth creation and making informed decisions.
- 🌟 The next big opportunity for India may lie in businesses that revolve around the flow of money, such as credit, lending, and insurance, as the economy develops and individuals have more disposable income.
Q & A
What is the main theme discussed in the video script about wealth and its distribution in India?
-The main theme discussed is the concentration of wealth among a small percentage of the population in India and the concept of wealth as not just material possessions, but as the freedom to do what one wants when they want.
How does the script define 'real wealth'?
-The script defines 'real wealth' as the freedom to do what you want when you want, rather than just the material things one owns.
What is the speaker's view on the FIRE (Financial Independence, Retire Early) movement?
-The speaker is not a big fan of the FIRE movement, as they believe that what people truly desire is the freedom to do what they want when they want, not necessarily early retirement.
What role did the acquisition of Flipkart by Walmart play in wealth creation in India?
-The acquisition gave many young people a significant amount of money, which they then used to start new businesses, potentially creating billions of dollars of wealth and employment opportunities.
Why do some people struggle to become wealthy according to the script?
-Some people struggle to become wealthy because they may not have had the opportunity to discover their talents and passions due to societal pressures and the obligation to conform to traditional career paths.
What is the concept of 'trust' in the context of wealth management discussed in the script?
-Trust is highlighted as a crucial factor in wealth management, where the wealthy rely on experts to manage their money and trust plays a significant role in building long-term relationships and ensuring responsible management of wealth.
What does the script suggest about the importance of storytelling in wealth creation?
-The script suggests that storytelling is essential in wealth creation, as it helps to convey a vision or belief that can attract investment and drive the development of new industries or businesses.
How does the script relate the concept of 'compounding' to various aspects of life?
-The script relates 'compounding' to career growth, reputation building, and trust development, emphasizing that consistent, small efforts over time can lead to significant outcomes in various life aspects.
What are the three phases of India's wealth journey as discussed in the script?
-The three phases are income management, wealth management, and wealth creation, with the latter being the phase where people focus on generating wealth and freeing up their time to pursue their interests.
What is the script's perspective on investing in the future versus investing in the present?
-The script suggests that investing in the future has the potential for disproportionate returns compared to investing in the present, which may yield average returns.
What advice does the script give about dealing with uncertainty and insecurity in the pursuit of wealth creation?
-The script advises embracing uncertainty as a natural part of growth and wealth creation, and dealing with insecurity by acknowledging it and using it as a motivator to learn and grow rather than a barrier.
Outlines
😀 Wealth Inequality and the Concept of True Wealth
The paragraph discusses the stark wealth inequality in India, where 1% of the population owns one third of the country's wealth. It emphasizes the difference between the common perception of wealth as material possessions and the true meaning of wealth as the freedom to do what one wants, when one wants. The speaker shares personal experiences from interacting with the wealthy in India, highlighting their luxury of time and the realization that wealth is about not sacrificing time on things one dislikes. The conversation also touches upon the ' FIRE ' movement and the desire of people to have the freedom to pursue their interests rather than just retiring early.
🤔 The Shift in India's Wealth Mindset and Trust in Expertise
This paragraph delves into the changing mindset towards wealth in India, moving from income management to wealth management and potentially towards wealth creation. The speaker discusses the rapid increase in investment accounts, indicating a growing interest in making money work. The paragraph also explores the reliance on expertise when dealing with high-stakes decisions like health and wealth management. The wealthy are portrayed as individuals who trust experts to manage their wealth, focusing on whether they can trust the person with their money rather than the specifics of investment strategies.
💡 The Power of Trust and Its Role in Wealth Retention
The role of trust in personal and financial relationships is the central theme of this paragraph. It discusses how trust can provide leverage, allowing individuals to delegate responsibilities and create more time for themselves. The speaker shares anecdotes about trust in business relationships and how it can lead to better performance and commitment. The paragraph also highlights the idea that trust is a compounding asset that needs continuous investment and that it is crucial for wealth retention as well as accumulation.
🚀 The Importance of Storytelling in Wealth Creation
This paragraph discusses how storytelling can be a powerful tool in wealth creation. It highlights the ability of stories to convey complex ideas, inspire action, and create emotional connections. The speaker shares examples of successful individuals who have used storytelling to their advantage, building brands and creating lasting wealth through the power of narrative.
Mindmap
Keywords
💡Wealth Inequality
💡Wealth Management
💡Time as Wealth
💡Compounding
💡Trust
💡Expertise Gap
💡Retirement
💡Economic Situation
💡Entrepreneurship
💡Investment
💡Scarcity Mindset
Highlights
Wealth inequality in India is stark, with 1% of the population owning one third of the country's wealth.
The wealthy understand the importance of time and the freedom to do what they want when they want.
Wealth is not just material possessions but the freedom to do what you want without sacrificing your time.
The FIRE movement's goal of early retirement is misunderstood; it's about the freedom to do what you want, not necessarily quitting work.
India's economic situation has historically led to a scarcity mindset and a race for limited opportunities.
The concept of wealth varies; for some, it's having the time to pursue passions without financial constraints.
India's wealth journey has evolved from income management to wealth management and is now entering a wealth creation era.
The 'Flipkart Mafia' is an example of wealth creation, where former employees have started new ventures, potentially generating billions in wealth.
Wealth creation is about freeing up time to pursue passions and helping others do the same, creating a cycle of wealth generation.
Trust is a critical component in wealth management; the wealthy rely on experts they trust to manage their finances.
The power of storytelling is essential in wealth creation, as it can attract investment and drive innovation.
Compounding is a fundamental concept for wealth creation, whether in money, trust, or expertise.
Investing in the future, rather than the present, can lead to disproportionate wealth creation.
The importance of not breaking the thread of compounding in any field of work for long-term success.
The next big opportunity for India may lie in businesses where the flow of money dictates success, such as credit, lending, and insurance.
The need for an education system that teaches concepts like compounding, storytelling, and future thinking.
Transcripts
[Music]
one percent of people in this country
own one third of the wealth of this
country see what do the really wealthy
really smart people know
they know what they want to do with
their time but why there are certain
people who are able to make wealth and
certain people are not wealthy
i was reading on your website the first
thing it says that 50 000 crore managed
in the past i was in a business where i
would sit across the table from
some of the wealthiest folks in india
okay and talk to them about how to
manage their money uh help them with
that you would meet people who are 25
crores 30 crores
and then you suddenly start feeling that
money is available like there is enough
money to go around
it's just that it is concentrated in the
hands of a few people
like india has
one of the craziest uh ginny
coefficients which is the wealth
inequality thing right okay
one percent of people in this country
own one third of the wealth of this
country that is
incredible it's mind-boggling it is
disturbing and that's when you started
feeling like how how can this be like
more broad-based like how can more
people have access to wealth the other
thing was like what does what is like
wealth for everyone right like if i ask
you what does wealth mean for you raj
having time in my hand
and
i should not sacrifice that time by
doing the things which i hate yeah
that's exactly for me also that's what i
discovered is the concept of wealth
right a lot of us believe that wealth is
things that you own
or the houses that you live in or the
cars that you drive
wealth is that what you don't see right
you don't see real wealth yeah and it
makes sense because every time you buy a
new car
you have less money in your account so
you have less wealth yeah and i agree
with you that wealth really is the
freedom to do
what you want when you want
uh and therefore it's not about retiring
it's not about like this i like i'm not
a big fan of this fire movement okay
which is retire early one thing i hear a
lot of people say is i want to retire
early i think what they really mean
is that they want to do what they want
when they want somebody who's working in
a bank retirement might mean stepping
back and writing a book yeah right
that's not retirement they want to do
what they want when they want other
things right
and i think that truly for me is wealth
and that's what i realized when i met
the really wealthy folks in india they
had the luxury of time
like they didn't have to get up in the
morning uh brush bathe have breakfast
and dash to office
like they were like okay
today i want to think about this like
what are you doing today i'm just
thinking about this new thing that i'm
going to work on right
and i think
that for me was a big realization that
how that can change the destiny of india
also in many ways
like what is the best thing about
flipkart being bought by walmart it gave
a lot of young people a lot of money to
put in and start doing their stuff
absolutely and they started so many new
businesses exactly and that's becoming
like a proper flipkart mafia now yeah
exactly there's a flipkart mafia who's
gone ahead and spawned these hundreds of
startups potentially creating
next tens of billions of dollars of
wealth for themselves and the multiple
people who work for them that is really
wealth and i think india needs uh
certain things like this they need that
we need that very very desperately every
young person who's watching this or even
in the room everybody's like hey
i want to get rich quick so that i could
retire from my job i can retire from all
the things right yeah why do you think
that is coming like why this is a
mentality all of a sudden because
aren't we all taught from the beginning
that study hard and then go to get a
good job or maybe start a business and
then do it for rest of your life like is
it that we are taught and now that is
getting challenged so why all of this
everybody's thing you know i think
that's a lot has got to do with
india's own economic situation and in
the time that we grew up i'm an 80s kid
we grew up in a time of scarcity
that there were not enough jobs and
there was a right race to get into the
limited jobs that and therefore limited
number of engineering colleges medical
schools etc and all of that so you're
constantly in that
race to
uh and i think as indians we generally
couldn't discover ourselves
uh what our true potential is
right and therefore when people make an
association with work
they it is an obligation it is something
that you have to do right
whereas actually i feel that
if we had the luxury of wealth of space
and time we could have discovered our
talents
better and differently much early on as
well
and which is why people want to then
retire like instead of like doing what
they love because they probably couldn't
discover what they really love we all
live in society where we've been taught
from from the beginning we've never been
asked
so if you go to school teachers tell you
hey this is how it needs to be done yeah
parents tell you this is the way yeah
your
uncles advisors everybody keeps telling
you you go to a job you do a job as well
most of the
old bosses they're like this is how
needs to be done yes you've never been
asked so you never question yourself and
because you never question yourself
you're not
curious enough to find out what you
really love and that's why you're like
you know one day i'll be like leave
everything and do it so is that do you
feel is the reason because we have
always thought never been asked
absolutely and i think you know one of
the
things people get really nervous is when
they're asked a question
like uh as a country
we love when somebody solves things for
us
yeah like
tells you that these are the three
things if you do and i think we are now
for the first time going through a
little bit of a shift beginning to
happen
thanks to
social media creators uh where
these questions are now are exposure to
the how globally people think
is much more than what it was say 10
years ago as somebody in finance i try
and relate everything that we see in
society
to
economy right and
like i personally feel there are three
phases of
india's wealth journey the first phase
was income management
right and a large part of our population
still doing that which is that
here is a certain amount of salary you
make
you make your ends meet within that and
you practically retire with nothing
there was a survey and people were asked
that how will you survive post
retirement
60 people said my children will support
me
yeah okay uh
so that was the
era
and in some cases still is the era of
income management and i think when i say
error it's not that
uh it's like distinctive periods in time
even today there are parts of our
country which are dealing with that the
second was this whole wealth management
era
and it's a very recent era it's like
probably the last four five years where
people have for the first time realized
that the import you have to save money
and find ways of
employing that money right
like
one interesting uh
the first like bse is it gives out the
data of number of accounts that were
opened in by investors right
from we went from one crore to two crore
accounts in
about 1300 days which is about three and
a half years
we went from nine crore to ten crore
accounts like that one crore was added
in
barely 90 days three months time wow so
imagine three and a half years it took
us to go from one crew to two crore
accounts
and from nine to ten which is adding
that one crore took us only three months
which means that people are for the
first time now thinking about putting
money some to work right
but that is still a wealth management
error where you have money
you just wanted to earn some return
i think that the real
uh potential of india will get unlocked
when we enter the wealth creation era
okay where people start thinking how do
i really create wealth and which is free
up my time to do what i want to do when
i want to do it what i'm
really excited about is we are seeing
signs of that like
entrepreneurs potential entrepreneurs
there's this conversation you go to a
cafe in bangalore
on the adjacent table somebody is
pitching to the new co-founder somebody
is pitching to an investor i think parts
of our country are entering that wealth
creation era
and i think that is the solve for
where we are today so wealth creation
technically you said it means
just like you make
enough money so that you buy out time to
do things which you love yeah and then
you help other people to do the same
thing yeah so that you all collectively
keep doing you all get in the creating
zone rather than managing so yeah yeah
so like for me also like the first
startup
which we had uh which was 2008 to 2021
uh
helped us create deserve in many ways
because it freed us up personally
from the obligation of working in a job
right
and today we can
uh
deploy whatever we have learned over the
last couple of decades
to be able to helping other people with
their wealth creation journeys fair and
i think which is why it's a huge
leverage
for individuals and for the country so
there's a misconception or probably
right thing that a lot of wealthy people
know what to do with their money is that
right or wrong see what do the really
wealthy really smart people know
they know what they want to do with
their time somebody
who sold a business made thousand crores
they really know what they want to do
next
right
some people might do a
become a yoga
monk some people might travel some
people might start a new business some
people might start a new foundation to
help other people right so there are
many other things they know what they
want to do with their time yeah when it
comes to money
majority of them
rely on expertise
because at that level the stakes become
so high you need somebody else to handle
it for you like i have a construct in my
head which is that
there are low stake
things and they're high stake things
high stake things is health your money
low stake things are what you want to
wear where do you want to travel to
vacation etc
now in low stake things
you don't need expertise
because you can spend your time etc
and figure that out but when it comes to
high stake activities that's when you
really rely on expertise
imagine like if i
had a health issue would i should i
google it
and self-medicate myself and you'd
advise against that and the same thing
with money and i think the really
wealthy folks have figured this out like
look at the la the most wealthy folks in
the world right they've set up these
family offices they've set up full teams
to help them with their money even the
people who are not as wealthy as them
are relying on experts to handle it for
them yeah so i think what
do they spend time on when it comes to
their money is figuring out whom they
can trust
with their money are there components of
how you can find these people and what
do they look for they're trying to
figure out whether they can trust you
and it's not about
where you will invest their money it's
not about how much fees will you charge
them
it's not about what is your
scientific strategy and because that's
all a given like
yeah i mean if you don't like have
transparency and if you don't have a
logic around how you deploy people's
capital you shouldn't be in the room to
begin with
but what they really figure out is
can does this guy have the right
ethical
uh you know frameworks does this guy
have the right
intent at heart
uh to grow my capital
and which is why a lot of these
discussions when it comes to
uh money are discussions like these
in most cases you're not discussing
what you will do with it or what
portfolio or which mutual fund or what
stock or which bond
that discussion doesn't come up it's
more about these conversations that what
sandeep like how how do you think
i should be deploying my money
or
what do you think i should be doing and
what they are assessing in that
conversation is can i trust this person
and once they do that
then
it it creates a responsibility on the
person that they've trusted
right my like i wrote about this this
recently uh
you know there was there's this tech
entrepreneur uh i met him for the first
time in early 2008.
and i said i want to come to your office
he's like no i'm going to and we're
talking about money so i want to meet
you outside so we met at this
there's this hotel called sun and sand
uh
inju at that point i don't know what
it's called now so we met i remember the
sunset was it was happening at that
point
and
all we did all he did was talk to me
about my background like
where did i grow up what did i do etc a
few days later i get a call saying that
you know i'm transferring my portfolio
to you now you handle it
all that happened a few years later we
became close friends uh i asked him uh
over a drink
about that first meeting and said so he
said i was figuring out whether i can
really trust you
and i said why because he said trust
gives me leverage
like now that i trust you
i don't have to be involved at all yeah
and it's opened up a whole
part of my life and time which otherwise
i would be micromanaging trying to
figure out where to deploy
and he he said that look you're gonna do
it full time that's all you do so i know
you'll do a better job than me all i
need to know is whether you have my
interest at heart and i think that's
like generally in life
trust is crazy leverage i feel like
how we build our teams right is also
about trust that if you have a trusted
person
then you as a founder can step back and
do so much more yeah and i think trust
creates that sense of
responsibility on both sides
okay uh like if you are entrusted with
something
you will rise to the occasion and
deliver for that person it's not about
the economics
[Music]
but you will go out of your way to help
the guy whom you've tried who has
trusted you and said that raj you're
handling this for me i don't now care
and imagine like that's like i've heard
team members tell me this that you know
i i'm under tremendous pressure why we
have not like he said no because you've
left it to me
like you're not interfering in that and
i think like and that for me is like
something that i really believe is
is something
to spend time on like
we should be spending time on figuring
out who we can trust why do you think
certain people
depicts more trust or certain brands
depict more trust because and certainly
we will not on trust right and it's like
a very deep uh
topic to delve into i feel like
we all are looking in general in life
for hacks
right trust is one of those things where
there are no hacks
right there's no like this if you do
this somebody will trust you if you do
this somebody will trust you trust is
one of those things that you to live on
a daily basis and then it compounds
and when it compounds it snowballs into
something very massive look at the tata
brand for example in india right
it is trusted because
people believe that over time
over hundreds of years or maybe a many
decades they have done right by the
consumer by the various stakeholders
that and therefore today that brand
commands significant uh trust so i think
trust is again one of those compounding
things that you have to keep investing
into if you want to build it as an asset
right so which means that on a daily
basis take those decisions
which are in the interest of the
stakeholder you're talking to so if
you're
let's say you have an employee
in your company like how are you doing
right by him or her
on a daily basis and not just like at
the appraisal cycle similarly if you
have a customer as a business you're
faced with so many different decisions
at some point right where you can cut
quality
increase prices increase the margin and
so on
but the thing is that do you take those
decisions when you're under pressure or
do you say no i will not break the
compounding of trust i will do right
by my user or client or
whoever is consuming my service on a
regular basis so that is i think at the
top
the long term trust creation when it
comes to people however on the other
hand there are like certain types of
people you trust
people like in our business on the
investing side it's about are you
willing to listen to the
user
the client the person who's placing
money with you because if you're not
listening
then uh
you're just projecting your own biases
onto their portfolio we go to a doctor
there are some doctors which are whom
you instinctively trust
because about it's about the way how
they communicate what you have right
yeah like and the best of doctors by the
way can you can go in and
they'll tell you
quietly examine you write out a
prescription and send you out
but you'll be like wait a minute like
what just happened like i'm not sure
that did he actually figure
but and they might have like but then
there's other doctor who will actually
explain to you what
happened right so those are like
individually
category level differentiators but at
the overall level i think trust is a
compounding game yeah so would you feel
that
people who are highly trusted are the
ones who attract wealth more see again
wealth is one of those things it's not a
race right it's not like a sprint where
you have to get wealthy by the time your
x years and so on okay
it's about again that same thing
flexibility do what you want when you
want
and
there are cases where people attract
wealth in a very short span of time but
are they really able to
uh
retain wealth i think that is
a function of how continually trusted
they are
because there are times when you make
money in the short run and then you look
look back and today let's say 10 years
later that person is you don't hear
about them anymore and the reason is
that
they couldn't retain that trust
they did something some shortcuts along
the way
which caused them to lose that wealth so
i think trust
the
uh
trust is something that
will allow you to
accumulate but also retain uh wealth
why do you think certain people are
wealthy and certain people are not like
because everybody wants to create wealth
yeah i'm sure that nobody gets up in the
morning and be like
right everybody's thinking about it
reading about it finding ways to do it
they're going to the job in a hope that
they'll be able to do it they're doing
starting their businesses to do the same
thing
but why there are certain people who are
able to make wealth and certain people
are not wealthy if you look at a lot of
mutual funds and you look at the funds
performance right i was recently looking
at a data that one asset management
company put out
and they said that
the performance of
this fund has been over many years 19
annualized
and i was like wait a minute like this
fund must have really made a lot of
money for people
so we looked at the data of how much
money actual investors made in that
particular font we looked at when money
came in when money went out and we
modeled that to figure out
and actual returns of
investors in that fund was 12 to 13
which is six percent
lower than what the fund actually made i
call this the expertise gap a lot of
times when it comes to managing your
money
you need somebody to hold your hand
and tell you and help you with what is
right at which point of time
otherwise our emotions kick in
and take control of that situation right
so i think
that for me is uh
is the reason why some people
continuously make wealth with their
investment and some people don't which
is the use of real expertise is that
happening or not
uh when it comes to high-stakes things
like money when it comes to life i have
a different theory everything in life
compounds i like i wish and i try and do
that with my kids i try and explain to
them this concept of
making money on money which is
essentially compounding over time right
because trust compounds as we spoke
but also everything that you do in your
career also compounds right
sometimes there's a temptation that
for the same job i'm getting 15 higher
in another company
maybe i should make a switch and if you
look at it in a completely dispassionate
rational basis maybe that is the right
thing
but what you are breaking is the
reputation
that you created in company a when
you're switching to company b you're
starting reputation afresh so you're
breaking the compounding of that
reputation
right and that then hurts in the long
run
so when people ask me should i like i
have this new job offer should i take up
etc
my first thing is to them is that ask
yourself are you breaking compounding in
any way form
uh that could hurt you in the in the
long run and i think like that for me is
like a big lesson of wealth creation
like don't break the thread
of compounding in any
any field of your work and the problem
with compounding is when you're living
that moment it doesn't feel like a
progress yeah right because it's like
0.01 on a daily basis
but
over time it becomes something magical
and very large there's this amazing book
one of the most favorite
things i've read uh ever is this book
called range by david epstein
which is as you know about uh gender
lists
and what are generalists they've tried
different things but over time they've
accumulated
uh
insight in that field right like we
talked about roger federer who uh
played tennis much later in life and
played a lot of other sport right he was
building a sense in i mean not
consciously maybe but around sport
right which then got channeled into
tennis and once they he got into tennis
he built on top of that right he played
for many years after that i would think
that
uh if it's conscious if it's thoughtful
it is potentially compounding too and
here's you here's how i look at you give
an ex beautiful example let's say
if you are leading a team in finance
then you're leading a team in
pharmaceuticals then you're leading a
team in
let's say law your compounding would be
in leading in leadership in the
leadership and i'll trust you on that
yeah not trust you on pharmaceuticals or
health or money or anything absolutely
so that's how that's what you meant like
congratulations ceos are able to switch
across companies
because they've figured out leadership
they've figured out how to help people
deliver to their best potential and
that's their compounding game so for
wealth like people who end up getting
wealthy
are a who understand that there's a
price of expertise which they have to
pay yeah so either they become the
expert or they find out the expert who
can help them too absolutely right and b
is
understanding consciously the power of
compounding in every field of their life
not only just money correct because
whether it's talent whether it's the
field or the domain expertise or just
trust or relationship anything at all if
you understand that consciously you you
become this person yeah who would a you
would attract a lot of things in life
which will make it easy for you to
become a wealthy person absolutely and
you know i was telling my wife the other
day that
uh
our education system is split into
subjects right
instead what if it was split into
concepts right and compounding being one
concept
and it's
i feel like it's the most important
thing that
uh drives progress
like we look at human history there are
so many small decisions or small things
that were discovered along the way that
made human beings what they are today
right you know sapiens uh you will know
that he's written about this that these
are small things which at that point in
time doesn't seem like such a big
event right and that's how you will feel
when in your daily lives also even in
your portfolios right
because uh
one of the things about most portfolios
is people are seeking excitement
right that uh yes
this is not exciting etc let's do
something more exciting what do they do
they break compounding and move to this
new
uh
instrument or something which is
potentially fresh
and again your broken compounding uh
so i think it's about just that that
allow compounding to play out uh tim
owen spoke about this this concept of
the instant gratification
right which is sitting somewhere in your
brain trying to make you do
things which will make you happy at that
point in time and almost always they
break compounding so i feel education
also this one problem
that we have never we always are taught
about past we never talk about future
like there should be a class on future
like what would you want to build or
what would how would you want to imagine
your 10 years from now or what would you
do like
just challenge the curiosity and
possibilities so that it helps in
nurturing the thought of innovation
rather than just finding patterns of the
past no absolutely like you know i was
at a singularity university in the bay
area
i think in 2019 and it was eye-opening
thing for me i think in many ways that
contributed to me starting deserve
uh there was this uh so
you know we were a bunch of like 50 60
folks and
there was this
futurism class okay
and there was no reading material
nothing given in advance so we didn't
know what we were going in for the
professor walked in
she divided the team and the group into
like 10 groups
and said that you pick one concept
and explore that towards
uh
next level and the next level and so on
so i'll give you an example
uh she gave my team the concept of
driverless cars
right now what does driverless cars mean
driverless cars one way of thinking
about them is that you won't need to
drive anymore therefore you will have
free time
but there is also another angle to it
which is that
if there are driverless cars
will you need to own a car or not
right so that is the next level effect
because if it's a driverless car
there is no shortage of drivers anymore
and cars are easily available
why do we have a problem getting an uber
or an ola is because the driver is not
available not the car is not available
right so if drivers were not a
bottleneck
then you will have any amount of cars
available
therefore the moment you walk out you
will get a car
therefore you will not own a car
what will it mean for
companies which lend against cars and so
on so forth right
so uh and that for me was a very
eye-opening thing in that
you look at one thing and explore what
it means
and i wish like our kids were
enabled to think like that
like take
uh the like button on instagram
right
and
then what like so what will happen if
you if the if the designer who
introduced a like button
uh if you he was asked okay so what will
happen so people will change like so
what will happen so people will focus
spend more time on instagram so what
will happen they will try and look
better on instagram and so on so forth
right imagine the implication of that
one feature
which was a like button
right just just having this thought
process of what will happen next like
that one like button will
will breed an entire generation which is
which is wanting validation constantly
on everyday basis and absolutely
absolutely just having that thought
process is great yeah so also in the
wealth creation process right i've
i've been a big believer of this and i'm
sure you would agree to this as well
that the maximum wealth is created by
investing in future not investing in
today
right you can make average returns by
investing in today but if you invest in
the future
right you can make crazy return so let's
say for example
jeff bezos so he was not he was working
on amazon 20 years from now
right 20 years 20 years ago facebook he
was working on the technology 20 years
ago right so everyone who works on the
future
ends up getting disproportionate
advantage over other people and making
wealth yeah right but when you look at a
lot of wealth managers and that's
creation right they all look at data and
patterns of what's working what's not
working yeah i look at the look at try
to understand the logic the quant the
mechanics all of these things yeah so
what do you feel is a better way to
create wealth like is it to take bets on
future because when you think about
future
it's very less logic
it's a lot of
gut feeling and maybe pattern behavior
shift which you have seen i think that's
a amazing question and i think that's
something that for us informs portfolio
strategy also uh
what do you look at when you
decide if you want to invest in a pms or
a mutual fund
and invariably the first data point you
look at is how that strategy did in the
last one year last three years last five
years and so on right
there is this very small disclaimer at
the end which is that past performance
is no guarantee of future returns right
and actually i think that should be the
main thing and the old return should be
in small font sevi did a great job of
introducing that disclaimer
and yet i don't think we pay enough
attention to it right a lot of times we
are investing into instruments funds
fund managers asset classes which have
performed in
recent times the recency bias
and invariably
you are ending up buying a thing which
has already done its thing
right it's moved already and now you are
coming into it like i was looking at the
inflows that happened into bitcoin
uh the amount of inflows that we got in
the last six months
or six months ago was much more than
what they got in the collective history
of
the currency
which means majority of people who've
come into this currency have lost money
now
right
and why did they come in because they
were looking at past returns
i think
great portfolio managers fund managers
wealth managers
look for patterns
and figure out what performed
in what kind of economic environment
right okay so if a particular fund
manager was doing really well when
interest rates were low
uh
will he or she perform when interest
rates are rising
is a question mark
like and we when we look take asset
allocation calls we also end up looking
at what is the stage of the economy in
right one of the things we find a lot of
similarity is
10-12 years ago
when our economy was in a similar state
what it is now right okay uh
and therefore to say that maybe the
markets will behave as they did then
over the next few years rather than
assuming that what has happened in the
past will necessarily recur
like
interesting thing that happened
especially on the back of 2021
is that everyone started extrapolating
2021 in various ways in life right
we said that a certain set of stocks and
portfolios have done really well they
will continue to do well
we assume that the digital adoption that
happened in that year will continue to
uh be that and we are realizing to
a lot of surprise that people want to
get back to regular life yep yeah uh
we sort of assumed that
uh we will want to meet people only
online online but now people are hating
it and there's a study done in states
where they've done it on gen z
so 72 percent gen z 72 percent gen z
said that they want to get back offline
they want to go to events they want to
do concerts they want to meet their
friends offline they want to have chill
parties yeah nobody is interested in
forget online meetings they're not
interested in watching netflix wow
they're like i'm done with this i want
to go out and be with friends and 72 is
crazy number based on whatever the size
would be absolutely and that shows up in
the stock prices of a lot of these
companies right it the assumption that
what happened in the recent past will
continue to happen in the same way i
think
and if if there is any evidence of that
that is required it doesn't work like
that it's 2021 to 2022
and which is why you we end up urging
investors like
don't look at past performance review
investing
never works like it's always almost
ending up in an accident in the future
but unfortunately that's what really
happens because it is easy to visualize
and sell like it's one data if imagine i
were to tell you that okay i've done all
of this analysis and this is what i
believe
you will say that's your belief
but there's this real data of last
year's performance
yeah and that's hard data and this is a
belief
right and invariably the human mind
wants certainty so then you chase the
hard data and
that's why we don't end up making the
money that we want to like the same nyu
professor
he quoted that
you know what
who are the ones
who make maximum wealth
what is the indicator which makes the
maximum wealth and how do you judge that
and they all say is the story and the
conviction of the story
absolutely and it's like and like
everybody started laughing it was like
how can you say this what is that but
he's like if you look at he's a finance
professor yeah he's a number numbers
guys like it talks about
capital allocation cash flow all of
these things right and past performances
and he said but if you look at
if you try to chase patterns and you
look at the past data you're only going
to be able to beat that or be
exactly at a position where you'll be
making the same model if you want to
make
insanely extraordinary results
it's the story of itself it's the story
which you believe in and that story
should be backed by logic it should not
be like hey
like that should not come on it's a it
should be
backed by a logic and if it makes sense
i think that's what makes you the
maximum wealth the fact that elon got so
many people to believe in the story of
electric vehicles
enabled
the ecosystem of elect that is needed
around electric vehicles to get created
yeah right because tesla doesn't operate
in a isolated environment they need
suppliers right how will a supplier
invest in a new project unless they buy
into his story
that
he will produce x number of cars every
year right
and i think
how like life is a lot about
storytelling uh i wish that was one
concept beside compounding that we were
taught that how important communication
and storytelling is
in your in your day-to-day work yeah and
i think i think every good story has
three elements in them
one is the promise of future
second is the logic and the
understanding of the behavior which is
giving you an insight of the future yeah
and third is relatability if i can't
relate with you or your problems then
you won't be able to see the same vision
which i am imagining so i mean if you
look at it as a tesla story as well
right
nobody
cared jack about electric vehicles
until he said that this is going to be
cooler and faster yeah so like everybody
who wanted like a cooler cars or faster
cars bought into this and they kind of
believed in it correct
imagine the pre-bookings that happened
at that point of time was crazy right he
got capital to build cars when he had
only a story
there's concentrated wealth creation and
there's diversified wealth creation
concentrated wealth creation is the
highest game that you play and a lot of
that is around storytelling and
believing in those stories that's a
concentration that's a concentration
like uh if i really believe in
the tesla story i'll put all my money
in tesla and may make a lot of wealth
out of it but there's a probability
attached to that yes it's not a
certainty right
whereas there's this diversified where
you potentially believe in many
different stories and create a
diversified portfolio around that
and
the probability of this uh is
potentially higher yeah i think we're
getting getting back to the original
point rich attract which gets richer
money attracts money and one of the
major reasons would be this
that
because
you
are secured now you can place high bets
and have concentrated bets
yes when you're trying to because when
you're secured and certain about their
max to max
then you play high bets
right versus when you're not secure you
try to play secured in certain bets but
actually the reverse happens
there is when you have smaller amount of
money
you tend to
believe that if i do this one thing
then i will uh
you know i'll be very rich i used to
walk to school and along the way there
was this lottery shop you know a lottery
shop is a very interesting place because
it's for sure very colorful
right there is this big mast which is
colorful so colors attract attention so
and these tickets are laid out and every
day i would see
like eight to ten people
uh you know leaning over a big board of
lottery tickets trying to pick out and
stuff and i used to wonder like what are
they looking for
how do they know that this ticket will
do but they would spend a lot of time
figuring that out
and a lot of them potentially would
gamble away a lot of their life earnings
there because of the hope that this will
make me rich
whereas probably what they should be
doing at that point is just investing in
diversified stuff right what do you
think are the like top three concepts
which everybody who wants to create
wealth should understand in their life
so one is probability okay i'll give you
an example
let's say
if i
uh buy a lottery and i can get a million
dollars
and i say that the chance of
winning that lottery
is say one percent
that means
effective outcome is say ten thousand
dollars
for me right because one million
multiplied by one percent ten thousand
dollars on the other hand there is this
investment that i can make that will
certainly give me twenty thousand
dollars right which one should i pick
and
humans are
inherently hopeful creatures right
that's why we got to where we are so we
would probably pick the lottery yeah
right because promise of one million
it's promise of one million right do you
think we should chase incremental
results and not exponential results so
uh if you are secure
in your life and have made a certain
amount of capital by all means go to
exponential exponential results like
when do people start angel investing
right when they've made their money they
have a couple of houses they have enough
capital to
run their family home etc and so on and
then they start investing in angel
investing yeah right it's not the first
thing that you do
right so there is uh
there is this whole probability thing
and i feel like
i also need to figure out how to explain
that to my kids better
right
uh
because uh if i were to be able to
explain that they'll be able to take
life decisions
much better than they are
the second is which i feel is about this
dealing with uncertainty
right
uh because a lot of stress
that we see in life around us is because
of uncertainty a lot of us can't live
with uncertainty
live with this feeling that we it's okay
not to know what's going to happen next
right and which impacts our risk-taking
appetite
and which impacts our ability to grow as
a nation also
right entrepreneurial nations
uh are inherently risky
because they are okay with uncertainty
it's okay not to know everything right
but when we have been taught that okay
do this
five steps to this learn this do that
etc guidelines
uh
notes cheat codes cheat sheets
you know we've got used to certainty
right
and
the third is i think a more a
personality thing that
i feel that
i'm also still learning
is
dealing with insecurity
okay
like uh
which is the fact that you may not know
everything
and that's all right
right so
i wish like probability uncertainty
insecurity
were things we were made cognizant about
and probably would have
it will be helpful and all three if you
look at like the most successful
entrepreneurs they've all got in this
thing okay
so
most of the people who have built crazy
tech products
they
went for the exponential
risk when they knew that yes
correct they were secure in their head
that yeah hey max 50 000 job i'm gonna
get it back again correct right so the
security came yeah so their incremental
level was sorted and that's why they
went for the exponential result they
tried to do something right
um forget tech like even the management
students or anyone who feels like if i'm
a sales person
i'm not going to go down correct down
the right that's why i can place high
bets that's one
second is uncertainty
every entrepreneur understands that
antenna unless there's a play of
uncertainty and i there's that's a
there's a phase of uncertainty and i
cross that i won't be able to
make exponential results in my life yeah
so we all
admit that yeah that yes
i know that it's uncertain but
guess what i'm still gonna get over it
correct okay and third thing insecurity
i feel
it's good to have insecurity yeah
because like it pushes you to do more
like
most of the people i have met
they all will tell that i'm not the best
person to do this i probably don't even
know how to do this but i'll figure it
out so every time you're insecure about
certain thing instead of saying
impossible say i don't know yet so for
example yeah if i'm insecure about
certain things let's say
i'm
i'm i'm insecure that i don't have the
right amount of talent to build a
startup i can say that it's impossible
i've just not built for it right or i
can say i'm built for it i just don't
know yet how to do that absolutely and
that's channeling in security correctly
because you're saying okay i need to
learn more about it right yeah so
instead of just discarding it by saying
him it's not for me absolutely saying
that it's not for me yet yeah yeah maybe
one day it'll be for me yeah and you
know i think it's about the vocabulary
also raj like if somebody were to tell
me there is this concept of insecurity
uh
as a kid that
this is what you are feeling
and it is okay
and
this is how you can deal with it or this
how you can think about it it can in
itself make a lot of difference
sometimes you don't know that you're
feeling insecurity yeah
till many years later when you're more
mature you look back at that time says
was i too insecure what i should
uh and i think this vocabulary uh around
these concepts i think uh sometimes
giving a word to it
is is important yeah so it's there's a
there's a framework right
if you want to make something common
start saying the word yeah like it
starts by saying the word because unless
you won't say the word you won't give it
a name yeah you won't know what that
feeling is called
like fear and excitement right yeah so
when when you're
nervous and you're scared you feel the
same thing versus when you're excited
yeah like your body doesn't know whether
you're fear like you're scared or
nervous right yeah it's just the
conditioning from the childhood yeah
which tells you that these are the
things i need to be scared about and
these are the things i need to be
excited i'm excited about yeah yeah
because
probably the chemical in your brain is
the same
so i was speaking to one skydiver like i
did skydiving a while ago and i was
speaking to him like i'm scared
you know when i look out of the plane
i mean i'm excited about the idea that i
want to skydive i want to jump it but
the moment you open that door i get
scared like do i need to jump or no yeah
and he's like the moment you open the
door i get excited then you jump
and it's like our bodies are feeling the
same thing yeah we both are shivering we
both don't know what's going to happen
our heart is beating faster yeah it's
just i've been trained to look at it as
excitement you have been look at trained
at looking at fear no i think just like
the different words at different time
conditions in a different way and i
think that's this link to the earlier
point of storytelling the power of words
like you know
in deserve you know the what is the job
of so we have a customer support team we
call them member partners that in itself
the fact that they're a partner to our
users uh and secondly what's their job
their job is to delight the user
yeah right and the moment we say it that
way
uh and when we explain the job
description we put it out like that
you're a member partner your job is to
delight the user
and
and some of that stuff then you don't
have to teach
people that this is what you need to do
yeah because the moment you say delight
you know that you have to go over and
above right
so i think i words have crazy power oh
yes instead of saying that you need to
attend calls
you need to
yeah just address problems yeah then
you're not worrying about that
how many tickets you closed et cetera
they know that my job is to deliver the
customer okay last question which we ask
everybody uh on our podcast is
what do you feel where is this what is
the next big opportunity for india the
biggest
concept that human beings created which
is unique to us is the concept of money
right
and as
an economy develops
money becomes more and more central
because we are now moving away from the
very basic day-to-day stuff right now as
the country develops our food
etc is taken care of
so probably the agrarian economy is
stable it's it's reasonable it covers
everyone right
but you have more money in the hands of
people
so any business or any those businesses
where my flow of money dictates how that
business will do i think that for me is
one thing that we should watch out for
very closely
give me an example like uh credit or
lending for example is something that
we're very excited about again because
money's flowing insurance our own
business wealth or investing
uh these are businesses where the
currency or the commodity with on the
top of which it is operating is money
and with surplus economic capital i
think those businesses will do really
well
yeah makes sense yeah nice thanks a lot
for doing this man really love having a
conversation with you i hope you did too
i i really love the the concept of
figuring out uh
i i think it shows
humility in many ways that
you're
if you're not preaching you are learning
along the way so i think that in itself
is something incredible and
congratulations on that thank you thank
you the whole idea is to
genuinely get the right people and learn
from them because so i've been a
believer of this and i keep fighting
with my dad about this right i feel that
dad you know what
me and someone who i feel as a role
model
we don't have a difference
yeah like the same people it's just they
know something which i don't know yet
so i need to ask them and find out ask
the right question or maybe the clear
question
and they will teach me something and if
i execute that right maybe i'll reach
that level so it's just always about
like i'm this curious person who wants
to learn from everyone who i feel is
doing right yeah incredible and i think
i wish
like that was something that was taught
in schools that that you need to learn
from everyone
we are all figuring out yeah even today
everyone is
you
Просмотреть больше связанных видео
![](https://i.ytimg.com/vi/nBFKUG42Xx4/hq720.jpg)
What To Focus On To Make $1 Million Dollars in 90 days | Grant Cardone
![](https://i.ytimg.com/vi/pLwNylKpV-U/hq720.jpg)
18 Wealth Lessons From The Psychology of Money
![](https://i.ytimg.com/vi/_5ecgEXLoCA/hq720.jpg)
The Psychology of Money in 20 minutes
![](https://i.ytimg.com/vi/nJGEKsTNbsU/hq720.jpg)
Scott’s Investment Portfolio — a Breakdown | Prof G Markets
![](https://i.ytimg.com/vi/88OW9KSd7RE/hq720.jpg)
14 lezioni DI INVESTIMENTO che ti apriranno gli occhi da 66 LIBRI [per principianti]
![](https://i.ytimg.com/vi/K8oU6O-52Zg/hq720.jpg?v=6569ba9d)
Küçük paralarla nasıl zengin olunur? | Mert Başaran anlattı...
5.0 / 5 (0 votes)