How Billionaires Think: Decoding The Billionaire Mind

Summary

In this insightful video, Sam Ovens explores the mindset of billionaires, revealing how their mental processes differ from the average person. He emphasizes the importance of mental awareness, cognition, and business principles as foundational layers for success. Ovens shares his journey from living in his parents' garage to running a multi-million dollar company, attributing his success to understanding and applying these mental models. He advocates for a 'full-stack' approach to learning, where mastering various business disciplines and principles leads to exceptional problem-solving and decision-making abilities, which are key to achieving success in any field.

Takeaways

• 🧠 The billionaire mindset is fundamentally different from the average person's, focusing on specific actions and mental processes that lead to success.
• 📈 Success is not accidental but a result of cause and effect, where specific actions are taken based on thought processes and decision-making.
• 🤔 The mind is the root of success, as it is responsible for creating thoughts that lead to actions, which in turn produce results.
• 🔍 Sam Ovens has spent six years studying successful individuals to understand and replicate the thought processes that lead to their success.
• 🏠 He shares his journey from living in his parents' garage with no money to building a company that makes around thirty million dollars a year.
• 📚 The importance of not just acquiring information but understanding how to apply it effectively, which is where the mind's role becomes crucial.
• 💡 The concept that two people given the same information can have vastly different outcomes due to the differences in their mental processing abilities.
• 🌐 The script emphasizes the importance of mental layers, including mental awareness, cognition, business principles, disciplines, and specific processes or tools.
• 🛠 The 'full-stack mind' refers to having a well-developed understanding across all layers, from mental awareness to specific business processes and tools.
• 🔑 Mental cognition is highlighted as a key layer for problem-solving, critical thinking, prioritization, and planning, which are essential for success.
• 🏆 The video concludes by emphasizing the necessity of becoming 'full-stack' in one's field to achieve exceptional success, much like successful individuals like Michael Jordan or Michael Schumacher.

Q & A

What is the main focus of the video by Sam Ovens?

The main focus of the video is to decode the billionaire's mind, exploring how it works and how it differs fundamentally from the average person's mindset.

What is Sam Ovens' personal motivation for studying the minds of successful people?

Sam Ovens is motivated to study successful people's minds to understand how they think and make decisions, which has helped him in his journey from living in his parents' garage to running a multi-million dollar company.

What does Sam believe is the root of success?

Sam believes that the root of success lies in one's mind and mental function, as thoughts create actions and actions create success.

Why does Sam emphasize the importance of studying the mind of successful individuals?

Sam emphasizes this because he believes that understanding the thought processes and mental models of successful individuals can help others improve their decision-making and actions, leading to success.

What is the difference between mental awareness and mental cognition according to the video?

Mental awareness is about self-awareness, understanding one's thoughts, actions, and patterns. Mental cognition, on the other hand, involves problem-solving, critical thinking, prioritization, and planning.

How does Sam describe the relationship between mental cognition and business success?

Sam describes mental cognition as a crucial layer for business success because it helps in prioritizing tasks, making decisions, and solving problems efficiently, which are key to running a successful business.

What are 'business principles' as discussed in the video?

Business principles are the core beliefs and values that guide how a business is run, such as student obsession, focus on cash flow, long-term thinking, and thinking from first principles.

Why is it important to have a full-stack understanding of business, as mentioned by Sam?

A full-stack understanding allows individuals to see the interconnections between different parts of a business, make informed decisions, and adapt quickly to challenges, which is essential for success.

What is the role of 'business disciplines' in the context of the billionaire's mind?

Business disciplines refer to specific areas of business knowledge such as marketing, sales, product development, and finance. Understanding these disciplines helps in managing different aspects of a business effectively.

How does Sam differentiate between learning specific skills and understanding the underlying layers of the mind?

Sam differentiates by stating that while specific skills are important, they are ineffective without a strong foundation in mental awareness, cognition, principles, and disciplines, which form the base for successful application of those skills.

What is the significance of 'mental models' in the billionaire's mind as discussed in the video?

Mental models are frameworks and perspectives that successful individuals use to view and solve problems. They are part of the mental cognition layer and help in effective decision-making and understanding complex situations.

Outlines

00:00

🧠 Decoding the Billionaire Mindset

Sam Ovens discusses his interest in understanding the thought processes of billionaires and how they differ from the average person. He emphasizes the importance of the mind in creating success, as it is the foundation for thoughts that lead to actions. Sam shares his journey of studying successful individuals across various fields to reverse-engineer their mindset, which has contributed to his own business growth from a startup to a multi-million dollar company in a few years. He highlights the need to focus on mental function and the cognitive processes that drive decision-making and actions.

05:01

📚 The Layers of Human Minds

This paragraph delves into the concept of layers within the human mind and how they affect learning and success. Sam explains that people often focus on acquiring specific skills without considering the foundational layers of mental cognition and awareness. He compares it to installing software on an operating system, illustrating that without a solid base, even the best skills will not function effectively. Sam's experience with business consulting has allowed him to observe varying levels of success among individuals, which he attributes to the strength of these foundational layers.

10:03

🏗️ Building a Solid Foundation for Success

Sam discusses the importance of establishing a strong foundation for learning and success. He uses the analogy of building a house on sand to explain how learning specific skills without a solid base of mental cognition, awareness, and business principles is futile. He emphasizes the need to understand the interconnectedness of different layers of the mind and how they influence each other. Sam provides an example of how a person with a well-developed mindset can integrate new information, like Facebook Ads, with existing knowledge to achieve success, unlike someone with a weak foundation.

15:05

🛠️ The Importance of Problem-Solving and Critical Thinking

In this paragraph, Sam highlights the inevitability of problems in any endeavor and the necessity of having strong problem-solving and critical thinking skills. He criticizes the current trend of teaching specific skills without addressing the foundational layers of the mind, which he sees as crucial for true success. Sam argues that without a solid base, even those who learn specific processes are likely to fail when faced with challenges, as they lack the mental cognition to adapt and overcome obstacles.

20:06

🧐 Developing Mental Awareness and Cognition

Sam explores the concept of mental awareness, which includes self-awareness, identity, and belief systems. He stresses the importance of recognizing and challenging limiting beliefs that can hinder success. Additionally, he discusses mental cognition, which involves problem-solving, critical thinking, prioritization, and planning. Sam points out that many entrepreneurs struggle with these aspects, leading to poor decision-making and an inability to effectively execute tasks and respond to challenges.

25:08

🏆 Embracing Business Principles for Long-Term Success

This paragraph focuses on the significance of business principles, which are the core beliefs and values that guide how a business is run. Sam shares some of his own principles, such as student obsession, a focus on long-term cash flow, and thinking from first principles. He contrasts these with the common focus on short-term profits and argues that adhering to strong principles is essential for sustainable success in business.

30:10

📚 The Multi-Disciplinary Approach to Business

Sam discusses the importance of being a generalist and having a broad understanding of various business disciplines, rather than specializing in just one area. He criticizes the education system for producing single-skilled workers and emphasizes the need for a multi-disciplinary approach to truly understand and manage a business effectively. Sam shares his personal experience of learning various aspects of business, which has enabled him to see the interconnections and make informed decisions.

35:12

🛠️ Mastering the Full Stack for Exceptional Business Acumen

In this paragraph, Sam talks about the concept of being 'full stack' in business, which means having a deep understanding of multiple disciplines and being able to apply this knowledge effectively. He uses examples of successful individuals like Michael Jordan and Michael Schumacher, who excelled in their fields by mastering various skills. Sam encourages viewers to develop a comprehensive skill set to create and add value in the world through businesses.

40:12

🌟 Conclusion: The Path to Full-Stack Success

Sam concludes the video by summarizing the importance of developing a full-stack mindset to achieve exceptional success in any field. He encourages viewers to focus on self-awareness, cognition, principles, and learning multiple disciplines. Sam invites viewers to like the video, share their thoughts, and subscribe to his channel for more content on personal and business development.

Keywords

💡Success

Success in the video is portrayed as a result of specific actions and mental processes rather than mere chance. It is the overarching theme that ties together the discussion on how the mind of a billionaire functions differently to achieve extraordinary outcomes. The script mentions that success is a product of cause and effect, emphasizing the importance of actions that stem from one's thought process.

💡Mindset

The term 'mindset' is central to the video's message, suggesting that the way an individual thinks fundamentally affects their actions and, consequently, their success. It is depicted as the foundation for achieving success, with the billionaire's mindset being characterized by a distinct way of analyzing, rationalizing, and making decisions.

💡Mental Cognition

Mental cognition, as discussed in the script, refers to an individual's ability to think critically, solve problems, and prioritize tasks. It is a key component of the billionaire mindset, enabling effective decision-making and strategic planning. The script uses mental cognition to illustrate how successful individuals process information and make trade-offs.

💡Business Principles

Business principles are the core beliefs and values that guide the operation of a business, as outlined in the video. They form a layer in the 'full-stack mind' and are vital for long-term success and strategic decision-making. Examples from the script include a focus on cash flow and student obsession, reflecting a commitment to long-term value and customer satisfaction.

💡Business Disciplines

Business disciplines refer to the various interconnected areas of knowledge required to run a business effectively. The video emphasizes the importance of understanding multiple disciplines such as marketing, sales, product development, and finance. It contrasts this with the common approach of focusing on a single discipline, arguing that a multidisciplinary approach is characteristic of successful individuals.

💡Full-Stack Mind

The concept of a 'full-stack mind' in the video represents a comprehensive understanding of all layers of knowledge and skills necessary for success. It suggests that billionaires possess a broad and deep range of competencies, from fundamental mental awareness to specific business processes. The term is used to advocate for a holistic approach to learning and personal development.

💡Mental Awareness

Mental awareness is described in the script as the first layer of the 'full-stack mind' and involves self-awareness, identity, and belief systems. It is the foundation upon which effective cognition and business acumen are built. The video suggests that high levels of mental awareness enable individuals to recognize patterns and make better decisions.

💡Cognition Layer

The cognition layer is a part of the 'full-stack mind' model presented in the video and pertains to an individual's ability to process information, prioritize tasks, and plan effectively. It is depicted as crucial for entrepreneurs who need to juggle multiple responsibilities and make decisions that impact their business's success.

💡Pattern Recognition

Pattern recognition, as mentioned in the script, is a key cognitive skill that allows individuals to identify recurring themes or trends, both in their personal lives and in business. It is linked to mental cognition and is portrayed as a valuable ability for making informed decisions and predictions.

💡Prioritization

Prioritization is the process of determining the order in which tasks should be performed based on their importance and urgency. In the context of the video, it is a critical aspect of mental cognition and is essential for effective time management and achieving business goals. The script illustrates how successful individuals prioritize tasks that contribute to long-term success over immediate but less impactful activities.

💡Trade-offs

Trade-offs refer to the decisions made between two or more alternatives that involve sacrificing one value or benefit to gain another. The video discusses how the billionaire mindset involves making strategic trade-offs every day, highlighting the importance of this concept in achieving success and optimizing decision-making.

Highlights

Decoding the billionaire mind to understand the fundamental differences from the average person's mindset.

Success is not by chance but a result of specific actions influenced by one's thought process and decision-making.

The importance of studying not just billionaires, but successful individuals across various fields to understand their mental processes.

The speaker's personal journey from living in a parent's garage to running a multi-million dollar company in six years, underscoring the impact of studying successful minds.

The disparity in outcomes when different individuals are exposed to the same information, highlighting the role of the mind in interpreting and acting on data.

The flawed approach of focusing solely on information acquisition without considering the individual's mental framework.

The concept of a 'full-stack mind' as the foundation for success, encompassing mental awareness, cognition, business principles, and disciplines.

The analogy of installing software on an operating system to illustrate the importance of a solid mental foundation before learning specific skills.

The layers of the human mind and how they influence the effectiveness of learned skills, from mental cognition to business principles.

The necessity of self-awareness and identity in shaping one's approach to learning and business.

Mental cognition as a critical layer for problem-solving, critical thinking, and prioritization in business.

The significance of business principles in guiding the philosophy and values behind running a business.

The argument for being multi-disciplinary in business, as opposed to focusing on a single skill, to create comprehensive value.

The importance of understanding the interconnectedness of different business disciplines for effective decision-making.

The concept of 'T-shaped' individuals who have a broad knowledge base but specialize in a particular area, exemplified by successful entrepreneurs.

The practical advice for aspiring entrepreneurs to develop a full-stack mindset to increase their ability to create and capture value.

The call to action for viewers to reflect on the video's content, engage with the material, and apply the principles to their own lives.

Transcripts

every one Sam ovens here and in today's

video I want to decode the billionaires

mind and what I want to do is take you

inside the mind of a billionaire and

really show you what it is how it works

and how it is fundamentally different in

pretty much every way shape and form

from the average person's mind now Wyatt

this has been a point of interest for me

is because personally I've been trying

to learn like how to become more

successful and how to function at a

higher level because you know behind

success isn't really magic it's it's

always cause and effect and there are

actions that people have taken in their

life that have had like profound impacts

that have allowed them to become

successful it didn't happen just by

chance it it happened by taking specific

actions now what causes somebody to take

an action is thinking by its analysis

its rationalizing and it's viewing

things and making trade-offs every

single day and the piece of you that is

responsible for that is the mind and so

if we reverse engineer this thing back

you know actions create success thoughts

create actions then the mind creates the

thoughts then you know really what's

lying at the base of success is your

mind and your mental function and how

your mind works and so that's why it's

been a real point of obsession for me to

study billionaires and not just

billionaires but really successful

people in every different field from you

know athletes to musicians to military

leaders to all sorts of different people

from all different eras and to really

pull apart their mind and really decode

their mind and figure out how it worked

and why it enabled them to see things

more clear than the average person and

make better decisions and take better

actions which is how they came to get to

where they are so that's why it's been a

real point of a focus for me to really

study the billionaires mind and really

successful people

so that I could then assemble one of

those mines inside my own mind and so

that's what I've been trying to do for

the past six years and I'm not a

billionaire yet but you know so far I've

been able to go from living in my

parents garage and with zero dollars at

all I didn't even have a college degree

or anything to start in consulting calm

my company and growing it to the point

now where it's making around thirty

million dollars a year and all that

happened in about five six years so you

know I'm by no means billionaire but I

have studied these people's minds a lot

and I've been able to reverse-engineer

it back to specific things that not only

myself but you can do like starting

today so that you can dramatically

improve the decisions that you make the

trade-offs that you make and the actions

that you take every day and that's going

to have an impact on your success in

life and in business or you know

whatever your field is now the reason

why I really wanted to dig into this and

study it is because this thing has

always interested me you know why if you

take one person and you put them into

contact with some information and this

information could be an online course it

could be a university degree it could be

a book it could be anything but let's

say you have a person they come into

contact with information and that

results in like massive success let's

say this person becomes a billionaire

right but then they say we have another

person and they come into contact with

the exact same information so the

information variable here is identical

right so two different people but very

similar come into contact with identical

information one output is you know be

linear the other output is you know

complete failure right so why is that

why can two people come into contact

with the same information and get

inverted dramatically like it

streamit results why is that and why

that is is because it's not about the

information you know the information

plays a role but it's not the main part

the main part of this is actually the

human's mind that is you know the main

piece here and what's fascinating is the

way we look at education and online

courses and and everything is we just

look purely at the information side we

think ok let's just get these people to

learn this information and they should

get this result because someone came

into contact with this information the

output was this so therefore we should

just force this upon everyone and that

output should be the same or to varying

degrees the same but what we see in the

world and what we see you know every day

is this we don't have the homogeneous

output we have wildly varying outputs

and it's because you know we've never

really looked inside these people's

minds and how that works and what I've

really tried to do is dig into this

I've studied other people's minds my own

and I've even you know been my business

consulting com what we do is we help

people start their own businesses from

scratch so we take people who have no

experience with business or anything and

we have to teach them everything and

help them make that dramatic

transformation into starting a business

and being successful with it and that's

a huge shift and so I've observed twenty

thousand people over five years go

through this and I've observed what

happens and the people who have trouble

with it the people who do okay with it

and the people who get extremely good

results with it and it's fascinated me

and I've really dug into this and looked

at it and what I've found is that there

are layers to like every humans mind

every humans brain there are layers and

what's fascinating is that when we go to

learn a specific skill like let's say

the specific skill is

is going to be you know how to run

Facebook ads right so that specific

skill is going to be up here on this

processors layer or this process layer

and beneath this we have like a business

discipline layer and so this layer here

is so I'll write this on so you guys can

see it so here we have like processors

and then on this layer here we have

business disciplines and then on the

light on the layer beneath it

we have business principles and then on

the layer beneath this one we have this

one here is mental cognition and then

the layer beneath it we have mental

awareness

now you're probably thinking what are

these things why are we talking about

these things well let me explain all of

them so if somebody and I see this

happen every single day you know

somebody will come in and they want to

start a business or be an entrepreneur

and they think okay well what do I need

to learn all right the hot topic is like

Facebook Ads and so I'm gonna come right

in and just learn all about Facebook Ads

and so they go in and they do that and

what they're doing is they're they're

acquiring a specific process skill like

this one little block here and they're

acquiring the skill but it's operating

on top of all of these layers and the

best way to think about this is you know

you've got like an operating system on

your computer like Windows or Mac

operating system and then on top of that

you can install applications like

Microsoft Word or keynote or different

things and then within those you know

you can create different files and

create different things like that

now if you install like a specific

software application on a bad operating

system like let's say you try to install

a Microsoft Windows application on Mac

OS it's not even going to install all

let's say you install like a real memory

hungry application like some sort of

graphics heavy graphical interface sort

of application on top of an operating

system that's outdated with not much RAM

and not much available memory and hard

drive space

well that application is going to be

running very poorly it's going to be

extremely inefficient and it's not even

going to really function and this is

what I see happen in business every

single day is people are just trying to

learn these processes in these specific

things but their foundations of their

mind are like in serious like in

seriously poor condition and basically

what they're doing is trying to install

like how to run Facebook ads on top of

really no knowledge of business

disciplines no knowledge of business

principles and

poor mental cognition and poor mental

awareness and when this happens it's

just like building a house on top of

sand you know it doesn't matter if you

get like a multi-million dollar house

with the fanciest design and everything

if you lay that thing on top of sand

it's going to fall over and it's going

to be completely useless and people

don't look at these layers beneath and

they don't work on these layers beneath

and then they wonder why these things up

here don't work for them and they wonder

why things are glitching up here and

this is why two people can come into

contact with the same information and

get different results because it depends

on the layers of the person's mind

somebody who's more aware with bitter

sharper cognition and with better

business principles and a wider array of

business disciplines is going to learn

information and perceive information in

an entirely different way and let me

give you a perfect example of this let's

say that somebody you know is much more

aware and has much better

problem-solving abilities and much

better critical thinking abilities and

lots of different mental models to run

things through and then on the business

principles layer this person has a

really solid kind of paradigm and

ideology of how they how they like to

run their business and they've got some

values and some principles they like to

follow and then up here on the business

disciplines layer they say this person

understands accounting they understand

tax and they understand sales and they

understand marketing and product

development and they understand

management as well and looking after

teams and all of that well now if that

person if they learn how to run Facebook

Ads

when they're going through that

information they're going to see all of

these connections all over the place

that the other person can't see because

they don't have this base foundation so

the person who's got all that and

they're learning Facebook Ads they're

gonna think oh this is how Facebook Ads

would affect the P&L this is how

Facebook Ads would affect the balance

sheet

or this is how Facebook Ads would make

that thing work or this is how sales

kind of comes in and interrelate with

Facebook ads and this is how product

development comes in and connects with

Facebook ads they're starting to connect

all of these different dots between all

of these different layers and then their

style and their method in their way of

running Facebook Ads

is going to be massively influenced by

these lower layers because every single

layer of your mind

you the layer above it inherits

everything from the layers below so if

you have really poor awareness and

self-discipline you know if you're at

this awareness layer if you are not able

to catch things if you're like attention

span is really short and you know if

you've got really destructive behaviors

and habits and if you also have a poor

sense of identity and you've got a lot

of delusions and false beliefs and

things like this then if you if this

person tries to learn anything it's game

over you know this person has problems

just sitting in front of the computer

for an hour and watching a video that's

longer than two minutes let alone

starting a damn business you know so

this person here it doesn't matter what

they learn they're screwed and the

person with bad mental cognition it

doesn't matter what they learn this

group so these layers down here of

extreme importance and so this is how we

can get these massively differing

results you know the person who becomes

a billionaire from this information

they're able to see all of the different

interconnections and they have really

solid foundations that they're able to

just like take this information apply it

between all these different things and

then execute it as a functioning

business or executing it as you know are

functioning anything and making a

massive difference whereas the other

person just sees words because all that

is to them is words and an a classic

example of the other person is when they

learn Facebook Ads they're thinking

we'll like how do how does this work

financially like how does this

if I spend money on ads how does this

come back does that is that like going

to be a profit or a loss they they

they're already breaking down mentally

and then you know they're because their

awareness and everything is so bad

they're not even going to be able to sit

down in front of the screen and write

Facebook ads for an extended period of

time because their attention span is so

horrible and then they're going to have

no mental cognition skills they're not

going to be able to problem-solve things

when problems arise and problems always

arise you know one thing we can

guarantee is that problems are coming

they come every day all the time

it's non-stop and so if you're not good

at solving problems and thinking

critically then you know none of this is

really going to work and this is what

nobody is really teaching anyone

anywhere ever

like people are just teaching skills

these days now when I look outside and I

look at by entrepreneurs and in these

different things they're learning

they're learning specific skills

processes or tools and they're

installing it on top of you know of

nothing and that they're just results in

nothing and they don't want to look at

these layers beneath because they think

oh that's just some like we will crap or

something that doesn't really matter I

just want to learn the technical like

nuggets oh I'm gonna get those gold

nuggets well these are we the gold

nuggets sir and you can have a lot of

these but if you don't have these base

foundations you ain't gonna make

anything happen

or if you do make something happen it's

gonna be short-lived it's going you're

going to self-sabotage it and it's going

to crumble and the moment you face a

problem because you don't have this

stuff down the bottom you're going to

you're just going to fold you know

you're just going to completely crumble

in the heat of the moment and that's why

billionaires you know the billionaire

mind is really well built it has these

layers really dialed in now what I'm

going to do is just walk through each

one of these layers and describe it to

you so that you can understand what it

is and how you can start like working on

your mind to make it full stack like

this and that's the kind of term I've

I've I've come up with to describe the

this billionaire mind it's like a

full-stack mind and it's when you work

on every single layer in the stack and

every single different interconnection

on the stack and you master the whole

thing instead of just the part because

if you just have a good part installed

on a rotten foundation the part will rot

right so it mental awareness what is

that and I'll write these things down

fear so mental awareness is really the

first layer and what it's all about is

basically how am I going to fit this in

I'll just fit it in here what it's all

about is your self-awareness so how will

where you are of yourself and your own

thoughts and your own actions and your

behaviors and your habits and your

tendencies and the patterns that seem to

you know repeat in your life and your

existence you know so someone might be

like will self-awareness I I know I'm

myself is here and I'm aware of that so

I'm self-aware yep like it this is

different this is being incredibly aware

of yourself and your thoughts basically

you know when you have got a higher

level of self-awareness is when you

focus on your the patterns of your

thoughts instead of the thoughts

themselves so you're kind of taking a

third a third what's it called it's

called a third person view of yourself

you're really looking from a bird's eye

view on yourself and how you're

interacting instead of being kind of

stuck in it yourself

now just close then something's popped

up on my phone so you've got self

awareness you've also got your identity

and your identity massively shaped zebra

thing in the stack and what I mean by

this is it's your self image of of who

you are so you know

this who you are physically and

everything but then there's who you

think you are and who how you see

yourself and what your self-image is and

this massively shapes everything because

if you think I'm not good at math and

I'm not outgoing and I'm not able to do

that or I don't have much energy or work

ethic then you're going to carry that

into everything you do and so as soon as

you come across some math anywhere in

this stack or anywhere in your business

journey they're going to be like open oh

that's not me I'm not a math person and

I see this happen all the time I see it

with people often say math or technology

I see it a lot especially with the older

generation they say oh no technology

that's not me That's not me and honestly

guys it's 2018 if you think technology

isn't you then you are right

because so you need to stop saying that

because it's not true like you can't

show me this like this imprint in your

DNA that proves that technology isn't

you you made it up it's a delusion you

cooked it and you're believing it and

you have to be the one that pops it

because it's not true you can learn

technology if you think you're not good

at math you can learn math right and

it's also like your ability to to belief

systems so what you believe is true and

not true about the world a lot of people

have a lot of these like making money as

evil or making money as bad or you know

all of these different things you have

to fix all of these before you can

really have any success anywhere else in

the stack everything you learn on top of

the space here will get these things

inherited into it right it's like having

a virus in the operating system of your

machine and then installing applications

on top of it the virus is just going to

just string its way right through

everything and so that's you know mental

awareness and I'll put out here well

I'll just rub out that one here so I've

got some space

now let's talk about the second layer

and there's more things to mental

awareness than just this right there's a

lot more to it but for the sake of

keeping things you know brief I'm just

going to mention a few things from each

stack and then the second one is mental

cognition and what this is is this is

your ability to problem-solve think

critically and prioritize different

things it's basically the layer in your

mind that receives all of these

different requests well there's all this

different information flying into your

mind all the time like oh maybe I should

do that maybe I should do this thing or

do that and this this layer here is

responsible for scheduling things it's

like okay how important is this and it

weighs it it weighs it's upside and it

weighs its potential downside and it

weighs it's like its effect horizon and

it also looks at all of the other pieces

in the system and then it assigns kind

of like a priority witness things should

be executed is it critically important

for survival if so then it should run

now execute now take the front of the

cube go or if it's not so crucial it

should just take you know a back

position in the queue and get scheduled

later on because it's not that important

but also if something is not important

at all this this layer here will just

discard a bit and just ignore it so this

piece is huge and I see a lot of

entrepreneurs who have some good

self-awareness and they've got some good

top-level kind of skills and principles

and disciplines but the cognition layer

is seriously missing it's like lacking

and prioritization is a key one because

I see people all the time they delay

working on the thing that's most

important and they prioritize and obsess

about and spend a huge amount of time on

the thing that is useless so when I see

this kind of behavior happening again

and again and again it tells me that

this purse

has a really backwards like cognition

layer in their mind and they're not able

to weigh things correctly and prioritize

things correctly the Slayer of the mind

is also responsible for like planning

thinking out into the future breaking

things down into chunks scheduling them

delegating them to other people and

planning and contingencies like what

happens if we if this happens then we

should do that or if there happens then

we should do this it's like a really

powerful layer of the mind and it's also

good at problem-solving so you know

problems come up all the time and this

layer of the mind will help you solve it

how do you troubleshoot a problem like

what are the different mental models

that you view the problem through one of

the different perspectives that you flip

between and one of the different

problem-solving methodologies and

frameworks and things that you deploy

when you come into contact with a

problem all right this is mental

cognition we've also got pattern

recognition so how easily you're able to

spot patterns in your own behavior in

your life in your business in the data

that you see for ads and your accounts

in the way your industry is evolving

it's like pattern recognition is very

very important and you know when you

study billionaires you'll notice that

they're hyper aware they are extremely

aware they catch things they catch

details and they can see things that

other people can't even see about

themselves all right it's almost like

they have x-ray vision they've got like

a clear winds right this hyper awareness

is that you're not born with it it's

made you can teach it to yourself it

just takes practice and then the

cognition layer billionaires are amazing

at this their problem-solving abilities

they can just go boom BAM find it done

before like you know before anyone else

has even processed the information and

they're also able to prioritize things

properly like they're able to put things

back in queue say no to things you can

do lots of things and focus on the key

important things and that's why this

layer is of exceptional importance in

your business principles so where am I

going to write this one I think we'll

put it we'll just put it here if you can

still see it here business principles

what are these so these are your like

your values and your beliefs about how

to run a business and these things are

crucial and so you know at these base

layers we're not even getting into

business so I down here we're not even

learning business skills we're learning

mental awareness and problem-solving and

mental models and cognition all of this

and then we're only getting into

business on this on this layer upwards

right and business principles are

different like beliefs you have about

business so I'll give you some of mine

for example like I run an online

education company and so I need a

central point of focus one thing that I

always default on and there is like

student position like the student is the

most important person in the equation so

whenever I'm whenever I have to make a

trade off or anything I think what does

the student want if the student was here

and they were listening to this what

would they choose what's best for them

not what's best for me

not what's best for different people in

the company nor what's best for

profitability or margin what's best for

the student through their eyes

so that's like a principal students

obsession another one would be that we

focus on on cash flow so you know we're

not too concerned about profit margins

or profits or quarterly profits or

anything to do with profits or earnings

what I'm most interested in is cash

flows and specifically long term future

cash flows that is what I'm focused on

and so you know this is very different a

lot of business people they've just got

their eyes fixed

on profits all right and all they want

is profits but in my belief system may

think profits people who do that a kind

of silly because they're leaving

themselves open to for somebody to come

in and take their market away from them

by just simply not making as much profit

that's leaving yourself open to a very

easy place to attack and also you have

to pay a lot of taxes and it's highly

inefficient and you're also not

investing a lot back into the business

into research and development and things

like this so this is just one principle

so you know I've got a student obsession

I'm a cashflow focused or long term

future cash flow focused and also I

think about the long term so if

something is gonna make my company less

money this year but more money in three

years five years ten years from now I'll

take the long term one any time right so

that's another one and also thinking

from first principles so I like to have

in my company like an idiosyncratic kind

of method of thinking so I like to think

differently and not just follow the

crowd and so instead of just doing what

everyone else is doing what we will do

is we'll look at it and break it down to

its first principles we'll break out

this thing into its different

constituent parts we'll analyze all of

them weigh all of them and then find the

best way to reassemble these constituent

parts to achieve an optimal outcome

instead of just doing what everyone else

is doing and what this leads to is quite

abnormal behavior to be honest you know

a lot of the things that a lot of people

have really obsessed about I completely

ignore and people think I'm an idiot for

doing it and then a lot of the things

that people never touch I obsess about

and they think that I'm stupid for doing

that right this is idiosyncratic

thinking and it's the byproduct of

having like a first principles kind of

worldview and a scientists worldview

instead of just you know like a fashion

point of view right fashion is it

follows trends but a scientist looks at

the constituent parts in the first

principles of everything and so those

are a few different business principle

then up here we have business

disciplines so what are these so right

here

cash flow focused and then student

obsessed and then we also had those

principles all right you know pretty

sure you can see there but now what

about business disciplines what are

these things well how am I going to fit

these ones on I should be able to fit it

by right here what happens if I go like

that good this will work so then we're

up to number four

business disciplines here's where the

Slayer starts to have different parts so

you can see these layers like this is

all blue this is all red this is all

green but up here we have different

pieces so these are kind of the

foundational layers but as soon as we

get to the business discipline layer we

can have different disciplines right so

if we know accounting that could be one

and then if we know like finance or law

or tax there could be like another and

then marketing could be a different one

and then sales could be a different one

product development could be a different

one and then management could be another

one right and what happens is our

education systems like how universities

and everything what they do is they

don't teach anyone this parent teaching

on this or this and what they do is they

teach people only one of these so you've

just learned marketing or you just learn

finance or you just learned this one

thing and what this leads to is just

single skilled workers right and this is

a really fascinating argument it's like

should you learn one thing and just

focus on it or should you be a

generalist and learn a few like a

broader range of things and what you'll

notice is if you study billionaires or

really successful people they are pretty

much in every single and every single

case like full stack and what I mean by

there it's not just through here but

multi discipline so they know lots of

different things and this has been the

case for me too along my journey is you

know I've thought all right I'll just

learn this marketing piece and then I

learn how to do that and then oh now I

need to sell now the now the result of

running this marketing thing generates

appointments and now I've got to get on

these appointments and sell but now I

don't know how to sell so what I do I've

got to learn sales now so then you learn

the sales part and then you're like what

what am i selling well now you've got to

come up with a product or a service

right and so how do you do that there's

like product development that's like

learning how to research and learning

how to find problems that

market has n craft solutions to them

this is a whole other thing and then

once you've done all of these so now

you've learned marketing sales and

product development and research and

things now you're running but now what

you need to learn accounting so that you

can manage everything and know how it

all works economically and how that all

of this outputs on the balance sheet and

the P&L and then you do that and then

comes tax season and now you're like

Noah now you've got this tax stuff and

so it just keeps going like this and the

the belief that a lot of people have is

that oh you can just hire other people

to do that or just get contractors to do

all of that but what you'll end up

finding is that they're just not good

enough because this single skill workers

like all they know is their little thing

and so when they look at your part of

your business all they can see is that

and they can't see how it interconnects

with all the other parts and so they

give you stupid advice right and this

this means that you can't really trust

these people or fall back on these

people and what I've found through my

experience in business is that I pretty

much had to learn how to do everything

myself so I've learned accounting tax

law corporate structures across

different countries and internationally

I've learned cash and accrual basis

accounting I have had to learn marketing

and then I've had to live in sales I've

had to learn product development I've

also had to learn statistics and like

analytics and things like that and

probabilities conversion rate

optimisation I've had to learn all of

this as well as management functions

like you know how to hire people how to

make sure the culture and everything is

good and within the company how to you

know create incentives and compensation

plans you know all of the stuff I've had

to learn all of it and what that that's

happened by accident kind of just

because I've had to along the way but

what that resulted in after a while was

really good knowledge across all sorts

of things and an ability to go in at

every different part of the business and

see how that interconnects to everything

else and troubleshoot things

real quick and problem-solve things real

quick and when you learn the full stack

so multi disciplines and the stuff down

here what you'll be able to do is do the

work of 30 people yourself and move a

hundred times faster than the thirty

people would as a team right now you

want to have that skill and billionaires

have that skill billionaires

multi-disciplined they are typically

like t-shaped and what I mean by that is

they have a broad knowledge of all these

different things but they focus in an

extreme obsessive way on a particular

thing so someone might know law taxes

accounting and all of this but they

might focus incessantly on like just

corporate structures right but they have

to understand all this other stuff in

order to do this and what I see today is

a lot of entrepreneurs just learning one

discipline and then they go out into the

world and they they're not able to do

anything they're not able to create

value because businesses are the things

that create value for people the

businesses have value and businesses are

made up of lots of different

interconnected parts and so if you want

to start a business you need to know the

different parts and how they

interconnect you currently just know one

piece that's how you get a job at a

corporate not how you create a business

and add value in the world and so this

is a very important thing and then on

this top layer here we've got like

processes and tools and things like this

and you have different processes and

tools on top of every discipline so on

top of just the discipline of marketing

right I understand

Facebook Ads I understand like click

funnels for landing pages

I understand analytics and I understand

conversion rate optimisation and I

understand a whole bunch of different

processes like how to create ads

different frameworks for ads just within

one channel and then I know how to do

copywriting and then

how like what types of images and things

would work well and I know the

psychology of marketing and all that and

so these are all different specific

processes tools and skills that just sit

on top of one discipline of marketing

and then with sales you know you've got

different sales skills and processes and

tools and then on top of Finance or

product development you've got different

processes tools and skills and so up

here we get into the actual what is the

step by step process of how we do this

thing here is the discipline the

marketing the sales then we've got the

principal's so it's your core beliefs

about operating a business then your

mental cognition your problem-solving

abilities and your prioritization and

planning and forecasting and mental

models and all of this and then down

here we've got your awareness and that

is self-awareness identity belief

systems things like that now like I said

earlier in this video what I see today

is people just learning tools how to use

the power editor good god if you just

learn how to do that you're useless and

or just processes like how to just run

this per specific process what are you

doing the process breaks what the hell

do you do now you're screwed because all

you know how to do is execute a process

you don't know the the discipline on

which the process says and you certainly

don't know the principles upon which

this process was founded and created on

and you don't know how to prioritize and

problem-solve anyway and you're not even

aware at the base level so even when it

stops working you probably won't even

notice that it stopped working and

you'll just continue to execute it and

it not work and you're not even aware

that it's not working and I see this

every single day so the purpose of this

video is to really show you in decode

the billionaires mind how it works what

it is and how it's fundamentally

different from the everyday normal

person's mind and if you want to be

successful in life and in this world and

any endeavor then you honestly need to

focus on becoming full-stack you need to

work on your awareness your cognition

you need to develop principle

your philosophy of things and then you

need to learn different disciplines by

keeping Michael Jordan he could play

offense and defense right here's one of

the first players that could do that

because players usually focused on just

offense or just defense he played both

and so we see this everywhere across all

disciplines Michael Schumacher was one

of the only Formula One drivers who was

a mechanic and would get in the workshop

with his mechanic for his Formula One

car and know what's happening with

everything you'd come off the track and

say you need to turn this on this fuel

mixture up here

I want this fuel mapping to have more

kick down here and it needs to not

be a spiky back here or that back lift

tire needs to go up 1 psi right he would

he would know the detail he was full

stack and so you know whatever the thing

is that you want to achieve and succeed

in in life then I can tell you that the

way you're going to be exceptional at it

is through becoming full stack so that's

it for this video today now what I want

you to do is if you enjoyed this just

click that like button and let me know

what you thought in the comments section

below just give me some feedback also

make sure you subscribe to my youtube

channel I release a video like this once

a week every week as well as customer

interviews and other resources like that

so thanks for watching and I look

forward to seeing you in the next one

soon