12 things I wish I had learned earlier

Seeing my nephew receive an HSC scholarship at a Chinese New Year celebration dinner last night reminded me of receiving the same award many years ago. It was nice to see the tradition continue, and as I was driving home, it also got me thinking: What advice would I give my younger self, knowing what I know now? An adjustment or course correction when you’re young can completely alter the outcome of your life as an adult.

Alright, here we go.

Finances

1. Concentration builds wealth; diversification protects it. Building significant wealth generally comes from a heavy focus on high-conviction opportunities. This is true for almost anyone who is truly wealthy. Diversification becomes crucial after you’ve built that foundation.
2. Don’t trust self-proclaimed “Experts”. Most people who claim to be experts are better at storytelling than substance. Don’t trust, verify.
3. Time is on your side. Start investing early! Compounding takes time. This is Warren Buffett’s secret. He only averages a 10% return per annum, but he started when he was 12.
4. There are only two ways to make money. Invest or own a business. For most people on a salary indexed at 3% inflation, asset prices move faster than their incomes. This is because the CPI calculation is fundamentally flawed, but nobody questions it.
5. You don’t need to be good at everything to make money. Just focus on your strengths.

Mindset

1. Reframe adversity: Everything that sucks in your life is a message from the universe on what you need to improve.
2. Intelligence alone is not enough: Although it is the single best predictor of success, it’s overrated. Courage and action are underrated. As a retired mate says, “Having balls is what makes you wealthy!” (although he’s also a legitimate genius)
3. Live a principled life. You will never regret maintaining your integrity, even if it makes you uncomfortable at the time.
4. If you’re the smartest person in the room, you’re probably in the wrong room.

Life lessons

1. You’ll remember the journey as being more fun than the destination, even if it sucks at the time.
2. You can’t live your life fully unless you accept that you’re going to die.
3. Make your body strong. As Socrates said, it’s a shame to grow old without experiencing the beauty and strength your body is capable of. Anyone who says they are in better shape at 30 or 40 than they were in their 20s didn’t do anything when they were in their 20s.

That’s about it.