The Almanack of Naval Ravikant: A Guide to Wealth and Happiness

by Eric Jorgenson

Hard work is really overrated. How hard you work matters a lot less in the modern economy. What is underrated? Judgment. Judgment is underrated. [1] Can you define judgment? My definition of wisdom is knowing the long-term consequences of your actions. Wisdom applied to external problems is judgment. They’re highly linked; knowing the long-term consequences of your actions and then making the right decision to capitalize on that. [78] In an age of leverage, one correct decision can win everything. Without hard work, you’ll develop neither judgment nor leverage. You have to put in the time, but the judgment is more important. The direction you’re heading in matters more than how fast you move, especially with leverage. Picking the direction you’re heading in for every decision is far, far more important than how much force you apply. Just pick the right direction to start walking in, and start walking. [1]