We've always heard about billionaires, who have dropped out of college, to launch companies and hit it. Big everyone from bill gates and mark is like a bird does steve jobs and michael dell. In fact, the billionaires list is disproportionately made up of college dropouts, but law. These are insane success stories. The one similarity between all these stories is that they happened in western fun, trees and, more specifically, america. Not only does this make the journey itself easier, given that there is more opportunity, but, more importantly, it the consequences of failing or actually not that bad worst case scenario. You can just flip burgers at mcdonald's and live paycheck to paycheck in many asian countries. However, if you don't make it with your business and you don't have a degree, you could have very well end up homeless, given the extreme competition even for entry level jobs. Despite this, an indian man named go with them. A donny was not only willing to drop out of college, but also willing to drop out of high school to chase a dream, and just last week, goddamn surpassed him location on bonnie to become asia's person. So you're still a high school dropout and became asia's richest mess. Taking a look back, gotham was born on june. Twenty. Fourth in nineteen sixty do it in a mad about india. His father was a local textile merchant which should have provided them with a decent upbringing financially, but the problem was not caught. Them had seven siblings. So his father's average income didn't stretch that far why his family, it wasn't a particularly rich, his father, small business, likely it's where the core values of their family generally in india, colleges, thought of as the holy grail and the people who don't follow. The traditional pat are only thing that ties within society, but it looks like gotham father's business and made a family more open to alternative pets, and this was quite important to given that goat, dumb hated school from the very beginning. He had very little interest in academics and he didn't feel that school could get him to where you want it to be anyway. So at age, sixteen he dropped out of high school and moved to bombay to give businesses shocked. He only had a few hundred rupees in his pocket good for less than a hundred dollars. It's not clear what exactly you tried to do in moon bay, but it seemed like it was a big failure as it got them would return home and enroll in college route to university, which is known for having extremely generous and missions. They don't oppose to fall much evidence rate. So it's not that anybody who applies and meet the basic criteria is accepted, in other words, gotham basically enrolled in a commune the college. This didn't matter much though, as it got them would drop out of here as well. Just two years later at age. Eighteen, he travelled to moon bay once again with a few hundred more rookies. But this time he had a plan go to and went ahead and scored an entry level job as a diamonds order. An exporting company called them a hand to her brothers not to be confused with my injury motors. While this job didn't pay, much give them insight into the diamond business and you would use the knowledge to start up a diamond flipping business. This turned out to be quite successful and made a goat them a good amount of money. It's not like you could just retire, but he no longer had to worry about making ends meet. In the meantime up one of his brothers, who was also inclined towards the business, started up a small plastic factory and ask out there.
After the closing bell on february first, twenty twenty two pay pal cfo at john rainey, forecasted that do drove a variety of hurdles and the challenges investors should be more cautious about their short term future of pay pal. Usually such an announcement may cause a five or seven percent decline after hours, but to pay pal stock tumble to eighteen percent after hours. At this point, executives and investors likely hope that a new trading day would be much kinder to pay pal and that that fear would subside, but on february second losses just to continue to compound and to pay pal, it would end up posting their worst a trading day ever losing it painful at twenty four present. Since then, pay pal has continued to bleed it falling a total of thirty percent. Now this decline itself would be considered a bear market, given that this whole office more than twenty percent, but this is just the most recent of pay, pal's losses since the end of july. It all stock has cracked a total of sixty percent, which correlates to over two hundred billion dollar loss in market cap. Clearly, pathos dog is experiencing a mini depression. So what happened to pay pal, taking a look back, one of pathos biggest shortfalls, was that you were never able to achieve a sustainable operation by themselves. Like many startups pay pal had a rough time turning a profit in the early days, but despite their lack of profitability, they did have millions of customers earth thanks to the rapid adoption of the internet, focusing on customers as opposed to profits, wasn't perfectly fine throughout the late nineteen nineties, as it was pretty easy to source funding, especially for a rapidly growing tech company. But all of this would have change at the turn of the millennium, with the birth of the dot com bubble by two thousand and one, it was clear that pay pal needed to focus on profitability if they wanted to survive, but their c e o. U on mosque, seem to be distracted, you don't want wanted to go pay pal it into a comprehensive, a platform it in transition to servers from linux to microsoft. While these ambitions may have been best for the company long term and the other executives felt that you was forgetting about the main priority which was turning a profit, so while you let was on vacation, then they decided to go ahead and fire him and peter thiel would take over this shift at a company company's folk as in the right direction, but they still had a long way to go. Ebay had announced a partnership with wells fargo to launch their own in house payment system called the bill point and the given that sixty one percent of pay pal's revenue came from ebay. This was not good by any means. In fact it this extreme dependence on ebay was the primary reason that both of google and yahoo refused. Apart pay pal. The only company willing to acquire pay pal was ebay, but they had a pretty predatory offer. They offer to four hundred million dollars and set a court. We are going to make this offer once and then crush you. You should really take that offer. Considering days peter decided to throw a hail mary by taking paypal, public.
So the men behind me looking over my shoulder, is I'm in mind, though he also happens to be my boss couple of years back, he wasn't in new york or in a car in a cat, actually probably a new book and any chance to form this news item and they didn't. Their duty saw this new you worded they're called block chain. What intrigued him, however, was that block promise to do and to disrupt companies like uber the same big companies like what what district think his company and so like many things that he doesn't understand the fastest, wanted to me to figure it out. I obviously had never heard of the word, but often before and as I scrambled to figure it out what it means war. Is it some kind of technology? How is it fair? I I chanced upon this particular conference called consent. Yes happens in new york every year, it's the world's largest, ah a blockchain gathering, and I ran day and in two days is dead. I was completely blown away. I realized a few things. One that dropped. Ten was like the internet in the nineteen nineties, but it could be aspect to that. It wasn't. They use schedule things in it like he call myself social, networking or email which are use cases off the internet, but it was something as fundamental battler to the internet. Three that it first sounded incredibly simple, but it was very complex to understand, for it had the potential to change our life in the next twenty years. The same way that the internet has changed in the last twenty and five. Finally, and most important rupturing was not spider, be I b c or I, and so the over what is blocked in so most of few. If I was to las que osama few, if I was to ask you what is blocked in most, people would say that that's the technology behind bitcoin or crypto currency on one of those, if is true, but it's like defining the internet as the technology behind he, which is also true, but it doesn't really even begin to describe the internet. So there are different ways to think about. Blockchain had a one way: it's ten gulf blocked chain. As this one big ledger in the cloud know you don't let just despite looking like this are very important venue for everything that you own, including money, is nothing but really entries on a ledge. So funny is that if you send money, for example, from the us dear friend, in zambia, it's not money which flies from here.
Have you heard the story about ronald read the janitor that had eight million dollars in savings when he died in two thousand and fourteen yeah? You heard that right, janitor, eight million dollars and he didn't win the lottery or inherit the money either he just saved consistently throughout his life, while letting the wonders of compounding. Do it's thing. The moral is that your behavior with money is often times more important than how intelligent you are. Even if you don't have a diploma from hallway or work on wall street, you can become rich by just behaving in a sound way as smoking house, so puts it financial success. This is not a hard science. It's a soft skills. How you behave is more important than walked. You know, spend your next ten to fifteen minutes on this video and you might excel on this self skill of investing. This is a top five takeaways summary all the psychology of money by morgan housel- and this is the swedish investor, bringing you the best tips and tools for reaching financial freedom through stock market. Investing segway number one pay the price that said that you want a new nice watch. You go to the store to check out the offerings. You are really after something that will impress your friends and the lovely lady that you're dating you know, have a choice: either you pay for the watch or you steal it and run because you have done your cardio right. My guess is that you would choose option number one, no matter your physical capacity, you would take out your card and swipe that thing. Do the right thing. The point is that you know that having a new watch comes with a price of feet and it's the same with investing. It comes with a price too. Throughout the videos on this channel. There are some rest curran takeaways for high returns, one of them being a somewhat concentrated portfolio with peter lynch, perhaps being the exception. The concentrated portfolio brings with it a characteristic to your performance. Each will be at title. This is the price the fee for having high returns in the stock market over the long term. If you don't have the stomach to stay the course, when your network decreases by say a twenty percent during a single week as two of your major holdings report, quarterly earnings below what analysts expected, don't aim to maximize your returns because the higher the returns the higher this fees, typically is. Let's say you already ten years ago, could visualize netflix bright future? You invested a large portion of your network into stoke. Well, they wouldn't be quite a rich person. Today, however, them could you afford paying the price for this journey? Netflix has during this period.
Warren buffet, isn't just one of the richest person on this planet he's probably also the billionaire with the lowest expense this out there, and he has kind of always been this way. He usually spends three dollars and seventeen cents on breakfast at mcdonald's. If the market is down, he'll pick the cheaper option, he still lives and the same old house that he purchased for just thirty one thousand five hundred dollars more than sixty years ago, heck even used to drive a car with a license plate that read thrifty. At the same time, though, in nineteen, eighty nine were in buffets company spent six point: seven million dollars on a personal jet airplane in nineteen. Fifty two he bought a dale carnegie speaking course, which turned out to be quiet expensive if you're talking terms of opportunity cost but we'll get to that later. Also in nineteen fifty two buffets splurged six percent of his then that's worth on a wedding ring, even cultists purchase of the wedding ring the best investment he ever made. I've never bought a piece of jewelry that I've regretted. Although charlie munger used to gold, the jet airplane the indefensible anyhow, it is clear that the oracle of omaha thinks that sometimes an investor must be willing to pay up even outside of the stock market. So that begs the question: how frugal shoot any investor be in this video? We will boil the topic of deferred gratification down into three separate takeaways. This is the swedish investor, bringing you the best tips and tools for reaching financial freedom through stock market investing, first and foremost, let's discuss why frugality is important for the investor. Here's some warren buffett defines investing investing is forgoing consumption now in order to have the ability to consume more at a later date. Buffets you understood the under, so compounding your own. That's always thought that every dollar today might be ten dollars to some other day in buffets case. That has proven to be immodest assumption and when you think about the mathematics of it's expenses, snowball really quickly, given the stock market returns that buffett has had over the years. What do you think that the cost of that dale carnegie course that he bought at age? Twenty two is in today's terms: if you would have invested the money, it would not be two hundred and ninety one million dollars know that it's no typo this this compound interest at it's finest or worst, depending on how you view it. It may be a bit aggressive to expect that you and I will have the same type of returns, that the oracle of omaha, but let's assume that we can make hoff of what a young warren buffet was able to perform. Then what is the opportunity cost of purchasing a car when you are in your twenties? We're not even talking a flashy car. Here I mean by.
An advertisement for a company called warner and swayze used to say the company that needs a new machine too, and has bought it it's already paying for it, charlie munger, the vice chairman of bucks. You have to wait, and one of the most successful investors in the world says that this applies to thinking tools as well. The man who is in need of a new thinking too, but hasn't yet acquired. It is already paying for it. Burden resistance will be released. Warren buffett has said the following about charlie munger jolie has the best thirty second mind in the world. He goes from a to zed in the one move. He sees the essence of everything before you can even finish the sentence, how you do it through observing reality and running it against his mental models? In this there is a video recovered, some of the most important motives with charlie munger uses, which he has talked about public. These mental models have helped monger to conquer the stock market, but they're are so diverse that they have a few cases within many other areas too. For example, they have allowed monger to be a successful chairman at a large hospital and they have allowed him to overcome devastating personal loss. As a few weeks ago, I asked you guys which topics you are most interested in. Besides investing in this series, you'll learn and how the models can be applied within these areas to some extent to maybe aren't interested in awesome rewards or avoiding a lot of misery or being more able to serve everything you love in life. If that's your attitude, then don't pay any attention to what you're about to learn in this series, because you are ready on the right track. Let's begin this. Is the swedish investor bringing you the best tips and tools for reaching financial freedom through stock market, investing we'll start off with something of a met, a model, and I think it makes sense to do this first before getting into any of the specifics. The first mental model of charlie munger is the swiss army knife approach. If you're going to learn how to drive a car, you understand that it isn't enough to learn how to use the accelerator. In fact, only learning how to use the accelerator when driving a car, pretty much guarantees that you will hurt yourself and others before you can become a successful driver. You need to learn about multiple things: how to use the steering wheel the brakes, the rear view mirror the gear shift, how to interpret road science. How to hong kong people when they do stupid things that you would never.
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