Chamath Palihapitiya is the founder of Social Capital, a prominent venture capitalist, and the “King of SPACs”. Christopher Uhl, Founder & Head Trader at 10MinuteStockTrader.com, Two Time Top 100 Person in Finance and host of The How To Trade Stocks And Options Podcast, covers one of his interviews that originally took place in 2017 where he talked about the best way to become rich and build wealth. He emphasized the importance of “slow compounding”.
“Start by turning off your social apps and giving your brain a break. Because then you will at least be a little bit more motivated to not be motivated by what everybody else thinks about.”, says Chamath Palihapitiya. That’s aggreable! Socials can be really toxic and you need to be really selective. Now regarding the value of “slow compounding”, Chamath’s little theory about company value creation is that “the faster you build it, that is the half-life, it will get destroyed in the same amount of time.” So when you think about a lot of social businesses, that’s played out. So Chamath’s not talking so much about investing, he’s talking about entrepreneurship that the half-life being as fast as it grows, fast it goes down. So basically, it takes time to grow something that is successful long-term. Here are some interesting insights that I learned from his interview:
Moderate growth is the key. When somebody says how is it going, you need to have the courage to say it’s hard and you are still working on the same thing. Relating that to trading, when we are learning to trade we can consider that it takes time to be successful. And you can’t just rush into something because that could go away just as fast.
Rewire your brain. You are training your brain. Whether you think it or not, whether you know it or not, whether you acknowledge it or not, acknowledge that the things you’re spending hours a day are rewiring your psychology and physiology in a way that now you have to use to go and figure out how to be productive in the commercial world. So if you don’t change it, you are going to get the same behaviors.
Financial Consultant Christopher Uhl’s take-away from this interview is to continue on your passion and not compare yourself to others. If they’re having these lucky streaks, there is a very good chance that they are going to have these unlucky streaks and be washed up. Instant gratification is teaching your brain to continue to seek instant gratification and that’s going to change the way that you respond to how you run your business or trading. So what’s the #1 secret of becoming rich according to this interview? I think it’s patience and perseverance.
To see the full interview, click here: https://www.howtotradestocksandoptionspodcast.com/chamath-palihapitiya-the-1-secret-to-becoming-rich