My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Most people should focus on starting and selling a business rather than stock picking for wealth building
Evidence
Historical difficulty of beating market returns through stock selection vs. documented wealth creation through successful business exits
Implication
Investment education should focus on index fund basics while business education should focus on company building and exit strategies
Counter Belief
Diversified investment strategies across multiple asset classes provide better risk-adjusted returns than concentrated business ownership
Example Application
Young professional chooses to start a business with 90% of focus and invest remaining cash in simple index funds rather than learning complex investment strategies.
Related Knowledge
Personal Capability as Safety Net
Viewing your own skills, knowledge, and earning ability as the primary financial safety net rather than relying solely on savings or investments.
Wisdom as the Limiting Factor
Recognizing that good judgment and decision-making ability are more valuable and scarce than raw intelligence or hard work.
Wealth Preservation Framework
A conservative investment approach focused on maintaining purchasing power and reducing stress rather than maximizing returns, typically used after achieving a significant financial milestone.
Second Derivative Spending Rule
A cash management principle where you never spend business income directly, but only spend the investment returns generated from that business income.
Investment Thesis Litigation Framework
A systematic approach to evaluating competing investment or business theories by collecting multiple expert perspectives and weighing evidence like a legal case.
Systematically evaluate and optimize personal investment allocation through peer feedback
Clear understanding of current allocation, identification of blind spots, actionable feedback from trusted peers, and refined investment strategy aligned with goals.