I’ve been reading the 4 Hour Workweek by Tim Ferris over the past few days (again). And I’d have to say that he has some pretty awesome/useful information in there. But of course, I don’t agree with everything. Here’s what I agree with and don’t, and how it relates to investing.
Doing something unimportant well doesn’t make it important.
Completely true. Some people feel like they have to listen to the latest BS spit out my Jim Cramer. Don’t, because anyone can be a good listener, and it’s not important.
Requiring a lot of time does not make a task important.
There are many menial jobs that can be outsourced. You only have 24 hours in a day, so don’t waste time doing something unimportant.
80% of all consequences come from 20% of the causes.
So true. That’s why you should not commit yourself to every opportunity that presents itself. Some people have the notion that they need to pursue every money making opportunity. Don’t. 80% of all stock market gains are realized by 20% of the investors and 20% of an individual portfolio.
Empowerment failures waste your time and the time of your employees.
Totally agree. Bureaucracy only slows things down, as every command and order needs to go down the ranks.
Move to once per day as soon as possible.
Delegate unimportant tasks such as checking email to once a day. The biggest time waster is constantly waiting for emails and text messages.
Not all customers are created equal. Evaluate your customers and thin the herd.
This can be interpreted two ways. If you’re a hedge fund manager, not all clients are equal. The guys who are bastards and give you hard time often are worth your effort dealing with. In a different light, those not all investment opportunities are created equal.
Emphasize streghts, don’t fix weaknesses.
I completely disagree with this. Going from a 40% to a70% is easier than going from a 90% to a 95%. Sometimes, you must fix your weaknesses in order to be successful.
Put things on autopilot, and save time.
There is no such thing as successful autopilot investing. Period.
Maintain a low information diet.
Don’t listen to every piece of market opinion. Doing so will only get your clear thinking muddled up, and confuse your thoughts. Don’t be obsessive over the latest piece of market data, because remember, it’s the price that drives the action, not the news.
However, good investors are knowledgeable. We all know that. Personally, I listen to 10 hedge fund managers and individual investors that I really trust.
Life doesn’t have to be hard. People jus tmake it hard.
Life doesn’t have to be hard. But there’s a weird conception that successful investing is easy. It’s not, or else we’d all but Warren Buffett!