#408: The Random Show — New Year's Resolutions, 2010-2019 Lessons Learned, Finding Joy, Energy Management, and Much More
Jan 30, 2020
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Kevin Rose, a technologist and serial entrepreneur, joins the conversation to reflect on a decade of personal and professional growth. They dive into the art of managing energy, navigating relationships, and the power of open communication. Kevin shares insights on caffeine withdrawal and the transition to decaf, while also discussing the therapeutic potential of psychedelics. They emphasize the importance of self-compassion, emotional closure, and being present in the moment, all while balancing personal ventures and investment strategies.
Setting boundaries and prioritizing self-care is crucial for maintaining energy and avoiding burnout.
Clearing emotional burdens and expressing gratitude can lead to a sense of relief and personal growth.
Energy management involves identifying drains and replenishing activities to optimize well-being and productivity.
Reflecting on the past decade and setting clear priorities can lay the foundation for a positive and fulfilling future.
Investing in ultra-risky tech companies that one deeply understands can result in significant returns and growth opportunities.
Deep dives
Setting Boundaries and Prioritizing Self-Care
One key insight from the podcast episode is the importance of setting boundaries and prioritizing self-care. The speaker emphasizes the need to say no to things that drain energy and to create rules and systems that make it easier to say no. This includes being mindful of alcohol consumption, tracking it accurately, and setting limits. The speaker also highlights the significance of energy management and maintaining a healthy balance of activities that energize, such as spending time in nature and engaging in creative work.
Clearing Emotional Burdens and Expressing Gratitude
Another main theme discussed in the podcast is the value of clearing emotional burdens and expressing gratitude. The speaker shares personal experiences with having uncomfortable conversations and addressing unresolved issues with others. This process, although challenging, has been freeing and has led to a sense of relief. The speaker also acknowledges the importance of expressing gratitude to mentors and others who have positively impacted their life.
Energy Awareness and Management
The podcast emphasizes the importance of energy awareness and management. This involves identifying energy drains and finding ways to mitigate or eliminate them, as well as recognizing activities that replenish energy. The speaker discusses the positive impact of spending time in nature, engaging in creative work, and finding routines and systems that optimize energy levels. By consciously managing and conserving energy, individuals can enhance overall well-being and productivity.
Reflecting on the Past and Prioritizing for the Future
The podcast encourages reflection on the past decade and prioritizing for the future. The speaker shares personal insights and lessons learned, such as the significance of admitting knowledge gaps and seeking mentors, as well as the value of setting policies and boundaries. Looking forward to 2020, the speaker emphasizes focusing on energy management, addressing unresolved issues, and setting clear priorities. By identifying areas of improvement and implementing necessary changes, individuals can lay the foundation for a positive and fulfilling future.
Investment strategy for the public markets
The speaker has developed a formula for their investment strategy in the public markets. They allocate 40% of their net worth to safer investments like high-yield bonds or dividend-paying stocks. Additionally, they allocate 20% to ultra-risky investments in tech companies that they deeply understand. They have had successful investments in Bitcoin, Apple, Shopify, and Tesla. They also mention the importance of saying no to investments they don't understand, even if others are making good returns. When deciding to sell, they consider if the underlying fundamentals of the business have changed. If not, but there is a decline due to market turbulence, they buy more.
Potential investments in ultra-risky tech companies
The speaker emphasizes the value of investing in ultra-risky tech companies that they deeply understand. They have had successful investments in companies like Bitcoin, Apple, Shopify, and Tesla. They mention the importance of concentrating bets on products and industries they have a thorough understanding of, and avoiding investments they don't understand. By focusing their investments on companies with high potential for growth, the speaker has seen significant returns on their investments.
Criteria for selling investments
The speaker considers two main criteria when deciding to sell investments. The first is if the underlying fundamentals of the business have changed. If there are significant changes in the company, the speaker will consider selling. The second criterion is market turbulence. If there is a decline in the stock price caused by market conditions, rather than changes within the company, the speaker sees it as an opportunity to buy more of the stock at a discount. They also mention the importance of collaborating with their tax accountant to make informed decisions regarding the timing of selling investments.
Importance of saying no to investments one doesn't understand
The speaker highlights the significance of saying no to investments that they don't understand, even if others are making good returns. They share their personal experience of not investing in Netflix due to a lack of understanding in the business model, despite its success. The speaker believes in focusing on investments they deeply understand and have confidence in. This selective approach enables them to make informed investment decisions and avoid potential pitfalls.
The Importance of Diversification in Investing
Diversification is essential when it comes to investing in stocks, particularly in the face of growing competition. The podcast highlights the dangers of putting all of one's money into a single stock like Netflix, especially considering the rise of new streaming services from major players like Apple, Disney, and Peacock. The speaker also emphasizes the significance of understanding the total addressable market for a business to determine its growth potential. An example is given with Shopify, where the speaker regrets panic selling the stock despite its positive numbers and profitability potential.
Managing Emotional Reactions and Risks in Investing
The podcast delves into the speaker's personal experiences with panic selling and emotional reactions when it comes to investing. The importance of having a plan is highlighted, along with the need to be aware of one's own emotional tendencies. The speaker reflects on their past decisions and the need to update their operating system to avoid making emotional mistakes. They also discuss the concept of revenge and the value of living well as a response to adversity or negative situations. Additionally, the podcast touches on risk management and the need to balance ultra-risky investments with more stable options.
Technologist, serial entrepreneur, world-class investor, self-experimenter, and all-around wild and crazy guy Kevin Rose (@KevinRose), rejoins me for another episode of "The Random Show." In this one we explore the language of relationships, polarity, energy management, difficult conversations, finding peace and patience, the importance of self-compassion, the search for palatable decaf coffee, panic-selling, serving the moment, and much more!
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