The stock markets are crashing now. For quite obvious reasons. Tariffs, trade wars, the government shutdown that has no signs of being abated soon. Markets don’t like uncertainty, chaos or unpredictability.
The S&P500 has gone down by 15% since October. Apple has lost 38% of its market capitalization in the same time frame. My phone has repeatedly received notifications on the 52-week lows of the stocks in my portfolio for the past few weeks.
The knives have started falling. Should you stand still and try to catch the falling knives?
Howard argued that it is only when the knives are falling are people terrified and do the bargains show up. If we wait till the dust settles, the bargain will be gone. But when should one start buying to take advantage of the downturn? It’s up to one’s skills. Howard also cautioned that buying during the downturn isn’t enough to guarantee returns. Investors have to be right first and if investors want to outperform the markets and everyone else, they must have insights that no one has or the 2nd layer of thoughts.
If you are interested in investing and business, it is a great interview with a lot of insights. Have a listen while driving or working out or cleaning your place. It’s worth your time.
Naval Ravikant is one of those people that I love to listen to. He is the CEO of Angelist and a deep thinker with remarkable insights. Below is one of the most significant lessons I learned from him. All credit is to Naval and Tim Ferriss for interviewing him.
I think a lot of the struggle we have in life comes from a deep, deep fear of death. It can take form in many ways. One can be that we want to write the great American novel. We want to achieve something in this world. We want to build something. We want to build a great piece of technology, or we want to start an amazing business, or we want to run for office and make a difference. A lot of this comes from this fear that we’re going to die, so we have to build something that lasts beyond us.
Obviously, the obsession that parents have with their children. A lot of that is warranted biological love, but some of that is also the quest for immortality. Even some of the beliefs of some of the more outlandish parts of religion I think fall into that. I don’t have the quest for immortality anymore. I think I came to this fundamental conclusion. I thought about it a lot. The universe has been around for a long time, and the universe is a very, very large place. If you’ll study even the smallest bit of science, for all practical purposes we are nothing. We are ameba. We are bacteria to the universe. We’re basically monkeys on a small rock orbiting a small backwards star in a huge galaxy, which is in an absolutely staggeringly gigantic universe, which itself may be part of a gigantic multiverse. This universe has been around probably for 10 billion years or more, and will be around for tens of billions of years afterwards. Your existence, my existence is just infinitesimal. It’s like a firefly blinking once in the night.
We’re not really here that long, and we don’t really matter that much. Nothing that we do lasts. Eventually, you will fade. Your works will fade. Your children will fade. Your thoughts will fade. These planets will fade. This sun will fade. It will all be gone. There are entire civilizations which we remember now with one or two words. Sumerian. Mayan. Do you know any Sumerians or Mayans? Do you hold any of them in high regard or esteem? Have they outlived their natural lifespan somehow? No. I think we’re just here for an extremely short period of time. From here, you can choose to believe in an afterlife or not. If you really do believe in an afterlife, then that should give you comfort and make you realize that maybe everything that goes on in this life is not that consequential. On the other hand, if you don’t believe in an afterlife, you should also come to a similar conclusion. You should realize that this is such a short and precious life that it’s really important that you don’t spend it being unhappy. There’s no excuse for spending most of your life in misery. You’ve only got 70 years out of the 50 billion or so that the universe is going to be around. Whatever your natural state is, it’s probably not this. This is your living state. Your dead state is true over a much longer time frame. When I think about the world that way, I realize it’s just kind of a game.
Which is not to say that you go to a dark place, and you start acting unethically and immorally. Quite the contrary, you realize just how precious life is and how it’s important to make sure that you enjoy yourself, you sleep well at night, you’re a good moral person, you’re generally happy, you take care of other people, you help out, but you can’t take it too seriously. You can’t get hung up over it. You can’t make yourself miserable and unhappy over it. You just have a very short period of time here on this earth. Nothing you do is going to matter that much in the long run. Don’t take yourself so seriously. That just kind of helps make everything else work.
I felt fortunate to come across this one and a half years ago. It was instrumental to the change in my perspective in life and a lot of what I do. Hopefully, you’ll find something of value from him.
I enjoy listening to episodes in the Knowledge Project by Shane Parrish. There are a lot of interesting and helpful lessons from conversations between Shane and his guests. The one episode I love the most is here, between the host and Naval Ravikant. I have listened to this episode for at least 5 times simply because it is so good.
Naval talked about a wide range of topics. The following points stood out the most to me:
The importance of reading and how to read books
The importance of habits
Happiness & anger
The meaning of life
It is a two-hour conversation. A bit long but definitely worth your time. If you look for something to listen to in your car, in the gym or just to have a peaceful time at a coffee shop, I’d highly recommend it. After that, his conversation with Tim Ferriss is a good follow-up.