Not everyday you come across a book which changes your perception of life. I’ve discussed at length how Richer wiser happier by William Green allowed me to make bigger concentrated bets and hold my winners for longer.
I recently finished Billionaires’ Row by Katherine Clarke and I’ve not stopped obsessing over it ever since. It has completely transformed the way I have thought about making it big in life by positioning of a North Star in what big actually is!
First the book- it’s the story of Skyscrappers built in New York post the global financial crisis in 2008 who share certain characteristics- they’re all at least a 1000 feet high, are all overlooking the Central Park and are of course, only available for the absolute wealthiest. Not for the 0.1%, but for the 0.001%!
I’m an absolute believer in the art of making money and have huge respect for anyone who has built generational wealth from scratch, on his own, by fair means and by paying full taxes. If only you’ve it in white can you buy a Ferrari and paint the town red. So my rock stars are the likes of Bill Ackman, Stan Druckenmiller, Mohnish Pabrai and towering over all of them is the late Rakesh Jhunjhunwala.
They all have one thing in common- they’re all first generational billionaires( not sure if Pabrai is one but he’s at least good for a hundred million). Also, they’re all into the markets- stocks mostly.
So when you’re in the field of finance, be it in banks, NBFC, hedge fund or a financial regulator, you’re all part of the game of managing money. The winners take home the most and the rest are left with peanuts. So for anyone reading this and saying, oh I am not in the race of making million dollars a year is being a fool. If you’re in the financial sector, you’re naturally competing with someone who is making a million dollar a year at least. And more often than not, you’re more qualified than him as well or have better understanding of the rules and the game also. So if you’re trading dollars and making a lakh a month and are fooling yourself that you’re doing great, the person on the other side of the trade is doing the same work but is making ten fifty hundred times more than you do and is happy to call you Sir while taking home the moolah!
Financial sector is a giant trading ring. Everyday you’re competing with each other to make money. You’re either playing or umpiring or just being a spectator but in the end the money is right there for taking. And if you’re not playing to win, you’re just being dumb!
In this context, understanding the full potential of the game is essential. So when I read about $50Million homes being normal, when I read that home by Ackman worth $90Million plus $20M for interiors, I understood wah making big smells like. When I read that if you had $10M, you might not be even able to buy the smallest condominium in there, I understood how small we are playing now. I understood why all the private bankers and hedge fund guys are so polite when talking to someone from the government or the regulators because they’re simply massaging their ego since they just don’t want anyone else competing for the fat bonus at the year end.
So this is why I realised unless you’re in it to make hundreds of millions, you’re not even playing. A person with five crore portfolio is like a club level cricketer playing with tennis ball while the real boys are playing Test Cricket. Just imagine the distance one can and has to go to achieve some semblance of success or in other words, make it big. 🍻
Life is all about Compounding! 