After I Read 40 Books on Money - Here's What Will Make You Rich

Summary

This video distills the core lessons from 40 money-making books to guide viewers on their journey from zero to millionaire status. It emphasizes mastering the mind, valuing freedom, and developing high-value skills. The speaker shares personal experiences and insights on habit formation, the importance of assets over liabilities, and the power of compound interest. The script also covers strategies for creating value, scaling businesses, and the psychology of persuasion, ultimately aiming to equip viewers with the knowledge to build wealth effectively.

Takeaways

• 📚 Summarizing 40 essential money-making books to help you get rich.
• 🧠 Master your mind to overcome negative beliefs about money and recognize its purpose, such as freedom and control.
• 📖 'Secrets of The Millionaire Mind' and 'The Psychology of Money' explain how our beliefs about money can hinder wealth creation.
• 🚀 Set big goals and get small wins daily, as discussed in 'The Magic of Thinking Big' and 'The Winner Effect'.
• 🔥 'Think and Grow Rich' emphasizes the importance of burning your ships, leaving no escape plan, to push yourself to succeed.
• 🔄 Focus on processes and habits, not just end goals, as 'Atomic Habits' and 'The 12 Week Year' suggest.
• 💼 Transition from employee to business owner or investor to build wealth, a concept explained in 'Cash Flow Quadrant'.
• 🧠 Develop high-value, unique skills and stack them to create a competitive edge, as advised in 'Mastery' and 'So Good They Can't Ignore You'.
• 💰 Understand personal finance basics and invest wisely, avoiding trying to beat the market as per 'Rich Dad Poor Dad' and 'The Little Book of Common Sense Investing'.
• 📈 Move from $100,000 to $1 million by generating more value than just selling your time, and create products that fulfill existing desires as per 'Zero To One' and 'Breakthrough Advertising'.
• 🌊 Seek out blue oceans with less competition and create demand for your products, explained in 'Blue Ocean Strategy' and 'Oversubscribed'.
• 🤝 Master influence and leadership, giving value to others, and using tactical empathy to build strong relationships, as detailed in 'Influence: The Psychology of Persuasion' and 'Never Split The Difference'.
• 🧩 Build systems and processes in your business to ensure sustainability and scalability, a core lesson from 'The Emyth' and 'Profit First'.
• 🦔 Specialize in one specific niche to become the best in your field, leading to long-term wealth, as described in 'Good To Great'.

Q & A

What is the core message of the video regarding wealth accumulation?

The video's core message is that by mastering one's mindset, developing good habits, acquiring high-value skills, understanding personal finance, and applying the lessons from 40 money-making books, one can progress from making $0 to becoming a millionaire and beyond.

How does the video suggest overcoming negative beliefs about money?

The video suggests overcoming negative beliefs about money by reading 'Secrets of The Millionaire Mind' and recognizing that such beliefs can hinder wealth accumulation. It emphasizes the importance of changing one's mindset to view money as a means to freedom and control.

What is the significance of 'The Psychology of Money' in the video's narrative?

'The Psychology of Money' is significant as it offers a different perspective on the purpose of money, suggesting it's about control and the ability to do whatever you want whenever you want, which aligns with the goal of financial freedom.

How does the video relate the concept of 'thinking big' to success?

The video relates 'thinking big' to success by referencing 'The Magic of Thinking Big', which explains that people often set their goals too low, thus never achieving significant success. It suggests that having big ambitions is the first step towards wealth.

What role does 'The Winner Effect' play in the video's advice on success?

'The Winner Effect' plays a role by illustrating the positive correlation between success and testosterone levels in successful stock market traders. It suggests that winning can increase testosterone receptors in the brain, leading to more wins in the future.

How does the video connect the idea of 'Atomic Habits' to wealth building?

The video connects 'Atomic Habits' to wealth building by emphasizing the importance of focusing on controllable processes rather than unattainable end goals. It highlights the habit stacking technique as a method for forming new habits that contribute to wealth accumulation.

What is the video's stance on the 'follow your passion' advice?

The video's stance is that 'follow your passion' alone may not lead to job satisfaction or success. It cites 'So Good They Can't Ignore You', which suggests that love for work often grows as skills improve, rather than being a prerequisite.

How does the video suggest leveraging unique skills for wealth creation?

The video suggests leveraging unique skills by developing a 'unique stack of skills' that is hard to replicate, as mentioned in 'Mastery'. This unique skill set can provide a competitive advantage and lead to higher income potential.

What is the importance of understanding personal finance according to the video?

According to the video, understanding personal finance is crucial for building wealth. It mentions 'Rich Dad Poor Dad' to illustrate the importance of distinguishing between assets and liabilities and the power of compound interest as explained in 'The Compound Effect'.

How does the video discuss the strategy of creating a 'blue ocean' in business?

The video discusses the 'blue ocean' strategy by suggesting that businesses should aim for markets with little competition. It cites a study that found businesses using this strategy were more profitable and dominated their industries for a longer period.

What advice does the video give on investing in the stock market?

The video advises against trying to beat the market and instead recommends investing in index funds or broad market index funds, as stated in 'The Little Book of Common Sense Investing'. It also emphasizes the importance of ignoring short-term market fluctuations, as suggested in 'The Intelligent Investor'.

How does the video relate the concept of 'Essentialism' to decision-making?

The video relates 'Essentialism' to decision-making by highlighting the importance of valuing one's time and energy. It suggests that for every 'yes' to a task or opportunity, many 'no's are necessary, ensuring focus on what truly matters.

What is the video's view on the importance of specialization in business?

The video's view is that specialization is key to success in business, as explained in 'Good To Great'. It suggests that mastering a specific niche can lead to long-term wealth by becoming irreplaceable in that area.

How does the video suggest using the 'Golden Circle' for effective leadership?

The video suggests using the 'Golden Circle' as a tool for effective leadership by starting with 'why', the central motivation, then explaining 'how', and finally discussing 'what'. It emphasizes the importance of inspiring action rather than instructing it.

What is the video's perspective on the role of world events in wealth building?

The video suggests that while world events are important, they should not be a primary concern until one has the power to influence them. It recommends focusing on building wealth first and then considering the impact of world events for informed decision-making.

Outlines

00:00

📚 Condensing Years of Business Knowledge

The speaker emphasizes the importance of reading and distills key lessons from 40 impactful money-making books. He explains his journey from zero to tens of millions through real businesses, not YouTube. He begins with the first step to wealth: mastering one's mind, discussing books like 'Secrets of The Millionaire Mind,' 'The Psychology of Money,' and 'The Magic of Thinking Big.' These books helped him overcome negative money beliefs and understand the significance of setting big goals. He also references 'The Winner Effect' and 'Think and Grow Rich' to highlight the psychological aspects of success, stressing the need for achievable goals and a relentless drive.

05:03

🧠 Forming Habits and Building Wealth

This section discusses the importance of forming good habits and managing stress, referencing books like 'The Essence of Success' and 'Atomic Habits.' The speaker emphasizes focusing on controllable processes rather than end goals and using habit stacking to develop new routines. He also touches on avoiding distractions, valuing time, and building high-value skills. Books like 'Essentialism,' 'So Good They Can't Ignore You,' and 'The Unfair Advantage' are mentioned, highlighting the need to develop unique, high-value skills in an AI-driven world.

10:03

💼 Investing and Financial Wisdom

The speaker transitions to discussing personal finance and investment strategies, drawing lessons from 'Rich Dad Poor Dad' and 'The Compound Effect.' He explains the importance of investing in assets, understanding compound interest, and avoiding market bubbles. Books like 'The Little Book of Common Sense Investing' and 'The Intelligent Investor' are recommended for their conservative investment approaches. He also introduces the video sponsor, Moomoo, highlighting its features and benefits for beginner investors.

15:03

🚀 From Jobs to Businesses

Focusing on the transition from employment to entrepreneurship, the speaker references 'Cash Flow Quadrant,' 'The 4-Hour Work Week,' and 'Zero To One' to explain the benefits of business ownership and investing. He discusses finding and validating business ideas using methods from 'Disrupt You' and 'The Lean Startup,' and the significance of creating a unique market space (blue ocean strategy) as detailed in 'Oversubscribed' and 'Breakthrough Advertising.'

🏆 Leadership and Advanced Business Strategies

The final section covers advanced topics in leadership and business strategy. The speaker cites 'Influence: The Psychology of Persuasion,' 'How To Win Friends and Influence People,' and 'Pitch Anything' to explain effective leadership and persuasion techniques. He also delves into maintaining power and building resilient businesses, referencing 'The 48 Laws of Power,' 'The E-Myth,' and 'Profit First.' The speaker concludes with insights from 'Good to Great' on specialization and briefly touches on macroeconomic perspectives from 'The Fourth Turning' and 'The Change in World Order.'

Keywords

💡Millionaire Mindset

The millionaire mindset refers to a set of attitudes and thought patterns that are conducive to financial success. In the video, it is mentioned that overcoming negative beliefs about money, such as the idea that 'money is the root of all evil,' is crucial. The video emphasizes that having a positive and proactive approach to wealth creation is foundational to building wealth.

💡Psychology of Money

The psychology of money involves understanding the emotional and cognitive relationship individuals have with financial resources. The video script cites the book 'The Psychology of Money' to highlight that money is about control and the ability to do what you want when you want, which is a common goal among those seeking financial freedom.

💡Wealth vs. Riches

The distinction between wealth and riches is an important concept in the video. Wealth is often described as the accumulation of assets that generate income, whereas riches can be associated with visible displays of wealth. The script points out that true wealth is not always apparent, and it's more about the financial control one has over their life.

💡Thinking Big

Thinking big is the concept of setting ambitious goals and aspirations. The video references 'The Magic of Thinking Big' to illustrate that many people limit their potential by setting their sights too low. The speaker suggests that having a big vision is a necessary first step towards achieving success.

💡Winner Effect

The winner effect is a psychological phenomenon where success breeds more success. In the video, it is discussed in the context of how winning can increase testosterone receptors in the brain, leading to further victories. This concept is used to encourage the viewer to seek out and celebrate small wins to build momentum towards larger goals.

💡Atomic Habits

Atomic habits refer to small, incremental changes in behavior that can lead to significant outcomes over time. The video mentions 'Atomic Habits' and the habit stacking technique, which involves linking a new habit with an existing one to ensure both are adopted. This concept is integral to the video's message on building wealth through consistent, positive behaviors.

💡Essentialism

Essentialism is the disciplined pursuit of less but better. The video script touches on the idea that saying 'yes' to one task often means saying 'no' to many others. It is about prioritizing what is truly important and aligning actions with one's goals, which is crucial for effective time management and wealth accumulation.

💡Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. The video uses the analogy of a penny doubling every day to illustrate the power of compound interest, emphasizing its significance in wealth building through investing.

💡Investing Principles

Investing principles are the fundamental guidelines or strategies that inform an investor's approach to the market. The video references 'The Little Book of Common Sense Investing' and 'The Intelligent Investor' to discuss the importance of a long-term, value-oriented approach to investing, rather than trying to time the market or pick individual stocks.

💡Cash Flow Quadrant

The cash flow quadrant is a concept from 'Cash Flow Quadrant' that categorizes different ways of generating income, emphasizing the importance of moving from an employee mindset to an investor mindset.

Highlights

The speaker has condensed 40 money-making books into core lessons for wealth creation.

Mastering one's mindset is crucial for financial success, as discussed in 'Secrets of The Millionaire Mind'.

Understanding money as a means to freedom or control is key, as highlighted in 'The Psychology of Money'.

The distinction between being rich and being wealthy involves visible consumption habits.

Many people do not believe in their potential for wealth, as illustrated by the speaker's schoolfriend.

'The Magic of Thinking Big' emphasizes the importance of setting ambitious goals for success.

The 'Winner Effect' shows a link between success and testosterone levels, promoting a cycle of winning.

'Think and Grow Rich' shares a story of commitment to success by eliminating escape routes.

The idea of societal normalization to mediocrity is critiqued in 'Unscripted', urging individuals to avoid it.

'The Essence of Success' offers a perspective on managing stress by visualizing it as a controllable element.

'Atomic Habits' introduces habit stacking as a technique for developing new habits effectively.

'The Seven Habits of Highly Effective People' stresses the importance of having a clear direction and legacy.

The '12 Week Year' concept creates urgency by treating a year as 12 weeks, which can enhance productivity.

'The Art of Getting Things Done' advises against relying on memory for tasks, promoting note-taking instead.

'Essentialism' highlights the importance of valuing 'yes' and not being afraid to say 'no'.

'So Good They Can't Ignore You' argues that skill development leads to passion for work, not the other way around.

'The Unfair Advantage' suggests leveraging natural strengths for success in an unfair world.

The importance of developing a unique skill set is emphasized in 'Mastery' to stand out in the job market.

'Steal Like An Artist' encourages copying from multiple inspirations to create something original.

'Rich Dad Poor Dad' teaches the importance of distinguishing between assets and liabilities in personal finance.

The power of compound interest is demonstrated with the 31-day penny doubling scenario in 'The Compound Effect'.

'The Little Book of Common Sense Investing' advises against trying to beat the market and instead invests in index funds.

'The Intelligent Investor' introduces the concept of Mr. Market to illustrate the irrationality of stock prices.

'One Up On Wall Street' suggests that personal experience with a company or product can give an investing advantage.

'Cash Flow Quadrant' outlines four ways to earn money, with business owners and investors having the upper hand.

'The 4-Hour Work Week' defines richness by relative income over absolute income, emphasizing time efficiency.

'Zero To One' encourages starting a business based on a contrarian truth that challenges the status quo.

'Disrupt You' suggests finding business ideas by identifying daily annoyances and thinking of improvements.

'The Lean Startup' emphasizes the importance of execution and adapting ideas through a feedback loop.

The 'Blue Ocean strategy' is introduced as a profitable market approach with less competition.

'Breakthrough Advertising' stresses the importance of fulfilling existing desires rather than creating new ones.

'Influence: The Psychology of Persuasion' discusses the power of giving value to influence others' actions.

'Never Split The Difference' introduces tactical empathy as a method for effective negotiation.

'How To Win Friends and Influence People' highlights the human desire to be heard and not contradicted.

'Pitch Anything' describes the three brains model and the importance of appealing to emotions in sales.

'Start With Why' presents the Golden Circle tool, emphasizing the importance of starting with a purpose.

'The 48 Laws of Power' advises leaders to ensure their irreplaceability to maintain power.

'The Emyth' explains the importance of building systems and processes for business success.

'Profit First' proposes a business strategy prioritizing profit over expenses to ensure profitability.

'Good To Great' introduces the hedgehog concept, focusing on being excellent in one area for long-term success.

'The Fourth Turning' and 'The Change in World Order' provide macro perspectives on historical cycles and superpower shifts.

Transcripts

So you want to become a millionaire

and everyone is telling you to read books

but hardly anyone's got time for that.

Luckily over my many years in business,

I've read hundreds of books,

but there are 40 money making books

that have really stuck with me.

So in this video, I'm gonna condense all of these books

into the core lessons that will actually make you rich.

And no, I'm not just saying this,

I have experienced doing it.

I've gone from absolute zero to making tens of millions

and I didn't make my money on YouTube

like most people on here, I did it running real businesses.

So I promise that the things I'm gonna share with you today

will take you from $0 to $100,000,

100,000 to a million, and a million to $10 million

if you apply them correctly.

Level one, going from zero to $100,000.

First, you need to master your mind.

I didn't come from a wealthy background

and during my youth I vividly remember

people saying the phrase,

money is the root of all evil.

"Secrets of The Millionaire Mind" explains how these phrases

program us to believe that rich people are the devil.

It took me a long time to rid myself of a negative feeling

in my stomach when I thought about making money.

If I'd have read this book sooner,

it would have helped me realize this issue earlier.

Once I got over this hurdle I had to ask myself,

what is money actually for?

For me the answer was freedom.

"The Psychology of Money" puts it a little differently

and says it's all about control.

But I suppose the goal is the same,

to be able to do whatever you want whenever you want.

It also touches on how there's a clear difference

between the rich and the wealthy.

Wealth is what you don't see.

The car is not purchased, diamonds not bought,

renovations postponed, clothes for gone

and first class upgrades declined.

Unfortunately, many people don't even believe

that they can become wealthy.

I remember my schoolfriend saying things like,

"I hope I can get an okay job when I graduate."

They weren't even hoping for a good one.

"The Magic of Thinking Big" explains that people

are setting their finish line too soon

and therefore never have a shot at being successful.

While I don't believe that thinking big alone

will make you successful, it's certainly the first step.

I always struggled in school and felt like a failure.

Interestingly, when I left and started working

in the real world, I found that I kept winning.

This was probably because I chose jobs I had an interest in

rather than learning things I didn't care about at school.

"The Winner Effect" talks about actual studies

to back up this phenomenon.

The book discusses how positive correlation

has been found between successful stock market traders

and their testosterone levels.

Furthermore winning increases the testosterone receptors

in your brain which causes you to win more in the future.

That's why it's important to set those achievable goals

and get those little wins every day.

I believe that my struggles in school

and my strong drive for success

had a positive impact on my life.

They left me with no other option but to push forward.

"Think and Grow Rich" tells a story about a great commander.

Despite being outnumbered by a far superior enemy,

he burned his army's own ships

leaving them with no escape plan.

This forced his soldiers to fight with everything they had

resulting in a miraculous victory against all the odds.

It just shows there's a big difference

between wanting to succeed and needing to.

Being comfortable is just as harmful

as having an escape plan.

During a chat with Andrew Tate,

he referred to this as one of the matrix's tools.

"Unscripted" also presents this idea.

The author argues that society aims to transform us

into model citizens, which stands for mediocre,

obedient, dependent, entertained and lifeless.

Avoiding this fate depends on how well

you can manage stress.

"The Essence of Success" gives us a helpful perspective

on this.

The book mentions that all the water that forms a fog

that's 100 feet deep and seven city blocks wide

can fit into a small glass.

Whenever I feel stressed I like to imagine

drinking this water and using it as fuel.

Now you can develop great habits.

Stress can also come from factors outside our control.

For this reason, I've made a conscious effort

throughout my life to only focus on things

that I can directly impact.

"Atomic Habits" reveals that many people fixate

on the end goal, which they have no control over

rather than a process of achieving it

which is completely in their hands.

I found the author's habit stacking technique

to be particularly helpful for forming new habits.

It involves pairing a new habit with an existing one

so both are completed at the same time.

However, most people just keep putting things off

and never form good habits.

I know far too many people just go through the motions

without any direction and before they know it,

time has run out.

"The Seven Habits of Highly Effective People"

stresses the importance of always knowing

where you are going and thinking about

how you want to be remembered.

I know this provides me with extra motivation

but this is only one part of the equation.

The 12 week year suggests treating a year as 12 weeks

to create a sense of urgency.

This really hit home for me

as I know I work best under pressure.

Although short-term pain is often necessary

for long-term gain, it can be difficult to remember this

when faced with challenges.

"The Art of Getting Things Done" emphasizes the importance

of not relying on your brain to remember all your tasks.

Instead, capture them on a phone or a notepad.

This way you can organize your task

without getting them confused

and you can also be selective with how you spend your time.

"Essentialism" reminds us that for every task we say yes to,

we have to say no to many others.

Therefore, it's important to value yes

and not be afraid to say no.

After adopting these habits

you should start building high value skills.

I've previously said that I don't like the advice,

follow your passion.

However, "So Good They Can't Ignore You"

takes it one step further.

The author interviewed many people who loved their jobs.

He found that most of them didn't initially

have a passion for their work.

Rather, as they improved their love for their work grew.

So what skills should you start building

if you aren't necessarily following your passion?

"The Unfair Advantage" suggests that to succeed

in an unfair world,

you need to play to your natural strengths.

Find what you are better at than most people

and lean into it.

However, it's no longer enough to just possess

high value skills.

Artificial intelligence is rapidly replacing many jobs.

I'm using it more and more in my various businesses

to complete simple tasks.

That's why the idea is shared in "Mastery"

are more important than ever.

My main takeaway was that you need to develop

a unique stack of skills that is nearly impossible

to replicate.

"Steal Like An Artist" echoes this point

when it suggests to copy from multiple inspirations

until you have a mix that is truly original.

Having this unique skill stack will give you the ability

to earn a high income.

However, that still won't mean you can build wealth

without understanding the basics of personal finance.

When I was younger, I had a mentor named Dave who taught me

about how the rich managed their money.

The biggest lesson I learned which is to also shared

in "Rich Dad Poor Dad" is that everything we buy

is either an asset or a liability.

To figure out which one it is,

we simply have to ask ourselves,

is it putting money in our pocket or taking it away?

Of course, if you want to be wealthy the aim should be

to buy as many assets as possible,

but lots of people don't see the value of investing.

Let me ask you this.

Would you rather have $3 million now

or a penny that doubles every day for 31 days?

The correct answer is the penny

because it actually turns into 10.7 million.

"The Compound Effect" uses this analogy to demonstrate

the power of investing and gaining compound interest.

Once most people get their head around this,

they get very excited but end up jumping into the markets

without really understanding anything.

That's what happened in the pandemic.

Everyone thought they knew what they were doing

but it was just a massive bubble waiting to burst.

That's why I've always followed the principles laid out

in "The Little Book of Common Sense Investing."

It states that trying to beat the market is a losing game.

Instead, you should own the entire market.

You can do this by investing in something

like the S&P 500 or a broad market index fund.

Interestingly, over a 35 year period,

only 1% of mutual funds could beat the market by 2%.

This means that index funds are a clear choice

for the average investor.

Although, as I do find them pretty boring,

I also like to invest in more interesting stocks

with a smaller part of my money.

Whenever I do this,

I keep in mind that the market is irrational.

As "The Intelligent Investor" puts it,

you should imagine a person come into your door

every day called Mr. Market.

One day he may offer you $2,000 for your stock

and the next only 500.

Even though the company may be doing better than ever,

this is because the price of the stock is based on demand

and not the actual real world value.

I only buy stocks if I'm prepared to ignore

what Mr. Market says for a long time.

Another phrase I live by is,

if you love the store, chances are you'll love the stock.

Which will shared in, "One Up On Wall Street."

This means if you've got a lot of experience of a company

or product, you might actually have a bigger advantage

than the pros when it comes to investing.

Before we get to the next level

I have to make one thing clear.

Reading books on investing can provide you

with theoretical knowledge,

but to truly succeed in investing and build wealth,

you need to put that knowledge into practice.

So if you are going to invest,

you need to make sure that you are using a tool

that provides you with all the necessary information

to make informed decisions.

This is where today's sponsor, Moomoo comes in.

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These three stocks can help you start building

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Level two, 100,000 to $1 million.

Now that you fixed all your internal beliefs

to make the next leap, you'll need to know how to generate

more value than you can from just selling your time.

We're taught to go to school, get good grades

and then get a high paying job.

However, when you do this, your earning inability is capped.

"Cash Flow Quadrant" outlines four distinct ways

to earn money.

E for employee, S for self-employed, B for business owner

and I for investor.

Business owners and investors have the advantage

of using other people's time and money

to build their wealth.

That's why it's crucial to move to the right side

of the quadrant if you want to become rich.

But what does it really mean to be rich?

Well, "The 4-Hour Work Week" explains this best

when it says that relative income trump's absolute income.

To understand his statement, let me ask you a question.

An investment banker earns 500,000 per year

working 80 hours a week.

On the other hand, an e-commerce entrepreneur

earns 40,000 per year but only works four hours per week,

who is richer?

If we look solely at absolute income,

then the banker is clearly making more money.

However, if we consider the time worked,

the banker earns $120 per hour

whereas the entrepreneur earns $200 per hour.

To take it one step further,

the entrepreneur can actually already live the retired life

that the banker dreams of

as he can operate from anywhere in the world.

I'll take the entrepreneur route any day of the week.

"Zero To One" states that the first step

to starting a business is betting on a contrarian truth.

This is the basis for most successful businesses.

For example, Netflix had to bet on the fact that people

wanted a binge watch TV shows at home,

and Airbnb had to believe that people would be willing

to stay in a strangers house.

For many people the biggest hurdle

is coming up with an idea.

However, this is often easier than you might think.

"Disrupt You" outlines an effective method

which is to write down three things that annoy you every day

and think about how they could be done better.

By doing this, you'll have 90 ideas to consider each month.

When you have an idea, don't be afraid to share it

with people that can help you.

People tend to be too protective of their plans

but the truth is, that an idea alone is usually

not that great.

"The Lean Startup" emphasizes the importance of execution

and the use of the build, measure, learn, feedback loop.

This approach ensures that you don't create

something nobody wants,

and allows you to pivot and adapt your idea as you go.

There was an interesting study conducted

on 108 new businesses across 30 industries.

Out of these, 92 businesses chose to enter red oceans

while 16 adopted a "Blue Ocean strategy."

A blue ocean refers to a market has little

to no competition, while a red ocean is named so

because of the fierce competitions between competitors.

The study found that 39% of profits came from businesses

in competitive markets,

while 61% of profits came from those

that used the blue ocean strategy.

Furthermore, these businesses went on to dominate

their industries for 10 to 15 years after launch.

A good strategy for creating your own blue ocean

is to become "Oversubscribed."

Consider Ferrari's.

Many people want them but not everyone can have one.

Yet, the people that run Ferrari aren't losing sleep

over this as they know that this scarcity

keeps demand high and the cars highly desired.

Every oversubscribed product has people

who are willing to buy it but can't get their hands on it.

When I'm driving up demand for my products,

I always remember the core lesson

from "Breakthrough Advertising."

This book is actually the most expensive book in the video.

It states that you can't manufacture desires,

instead your job is to create a product

that fulfills the already existing desires.

Level three, $1 million to $10 million plus.

Elon Musk wouldn't be nearly as successful as he is today

if he didn't have the ability to inspire others

to make his visions a reality.

"Influence: The Psychology of Persuasion"

is one of the best books on this topic.

I've been using this principle in my model shops for years

as my employees are encouraged to help customers

with quick repairs for free.

I know that if we do this,

the person is far more likely to come back in the future

and make a much larger purchase.

You can use this with anything.

Just focus on giving value

and eventually, it'll come back to you.

Dealing with people comes with a lot of headaches.

You can't compromise on your vision

but you also need to make sure that people don't resent you.

"Never Split The Difference" says you can do this

by using something called tactical empathy.

The key is to empathize with someone's situation

to get them to empathize with yours.

People want to be heard and as mentioned

in "How To Win Friends and Influence People"

they don't wanna be told they're wrong.

The reality is all humans are emotion led creatures.

They tend to make their decisions with this in mind

and then justify their actions with logic.

"Pitch Anything" explains this

as having three different brains.

The croc brain which developed when we were mere animals,

the mid-brain and the neocortex

where we make all of our decisions.

Most people try to appeal to the neocortex

when they want to sell something,

but first you need to break through the croc brain.

You can do this by using emotion

and making what you're asking for as simple as possible.

Leadership is something I've spent a lot of time

learning about because the better you are at it

the more money you can make.

"Start With Why" shares a useful tool called

the Golden Circle.

Where why is it the center, how is in the middle ring

and what is in the outer ring.

Bad leaders start from the outside

and rarely get to the center.

This is like my teachers at school who told me to read

because that's what I needed to do

but never inspired me to take action.

On the other hand, my mentors told me

that if I wanted to become wealthy and have freedom,

I should read specific books

and they gave me recommendations to achieve my goals.

After that, I really saw the value in books.

The key here is that great leaders inspire you

to take action,

they don't tell you to.

It may surprise you but all leaders

are pretty calculated people deep down.

Reading "The 48 Laws of Power"

opened my eyes to this even more.

One of my favorite laws was number 11,

learn to keep people dependent on you.

This is so true as an employee and a leader,

if you can be replaced by someone

you can never truly have power.

However, if your future business is dependent

on irreplaceable people, it will eventually collapse.

The reason why 80% of new businesses fail

is that the person running it does not understand

how to build systems and processes.

"The Emyth" outlines how most people who start businesses

are not entrepreneurs,

but rather just good at a certain skill.

For example, someone who makes good cakes

may not necessarily be able to run a successful bakery.

These kinds of entrepreneurs often over invest

in their businesses hoping that one day

they will turn a profit.

However, what often happens is the income slows down

while expenses remain high

leading to the closure of the business and no profits.

That's why adopting the strategy described

in the book, "Profit First" is crucial.

The book proposes that entrepreneurs

should run their business with the calculation,

sales minus profit equals expenses,

to ensure that they're always profitable.

I believe one of the primary reasons I've succeeded

in business for so long is by specializing

in one specific niche, radio controlled models.

Although it may seem small,

I know I could be the best in my field.

"Good To Great" describes this as having

a hedgehog mentality.

Each day the fox attempts new tactics to catch the hedgehog,

but every time the hedgehog rolls into a ball,

using this tried and tested strategy to avoid being eaten.

Being extremely good in one area makes you rich

in the long run.

Up until this point, I have a discussed world events

as they relate to the bigger picture.

This is because I believe that you need not worry

about them until you have the power to influence them.

If you have a considerable amount of wealth,

it may be worth reading "The Fourth Turning"

which suggests that every century consists of around

4, 25 year historical blocks called the high,

awakening, unraveling and crisis.

Another good one is "The Change in World Order"

which discusses the idea that every major superpower

has its time and eventually declines.

These can provide a perspective on how events

and trends may impact the economy and society

which can be useful for making informed decisions

about investments and business ventures,

but aren't necessarily something to worry about

if you haven't made at least 10 million, in my opinion.

I'm gonna leave the next video right up there

but don't click on it just yet,

make sure to subscribe if you want to grow your wealth.

Okay, I'll see you over there.