The other day I was talking with my wife Claire about the secret of the rich; that the amount they are worth is disproportionate to the amount they earn. Think about, if you have a small business with a small team making $250K profit per annum, then you probably have a business worth a multiple of 1-2x so you’re worth between $250K and $500K.
If you invest in the business and increase the profits to $2M per annum over a three year period, then depending on your industry that business is now probably worth a multiple of 4-7x, so you’re now worth between $8M to $14M.
So what you’re worth is far more than what you’ve made.
If you just focus on what you’re dropping out the bottom right now then you are in danger of missing the real value that your business can be worth in the future.
That’s why the rich get richer disproportionately; they focus on longer-term value not just shorter term wins.
When we want something, we are taught to visualise that thing, to focus on that image, until we have it.
There’s almost never a completely clean run.
Sometimes wonderful things take you by surprise, they open a new door.
Have you ever moved into a new house and seen something that needed fixing and thought “I’ll get on to that soon”?
Humans are tribal.
As humans we have an insatiable desire to explain untoward events so we can get on with solutions.
In any field, most of the rewards go to the top 5% of people.
I say please to Siri.
If a turkey were to assess the state of the world in early December, they would be forgiven for thinking all is well and that the farmer loves them.
We often compare today’s performance relative to yesterdays.