Naval: You have to take responsibility for everything bad that happens to you—and this is a mindset.

Maybe it’s a little fake, but it’s very self-serving. And in fact, if you can go the extra mile and just attribute everything good that happens to you to luck, that might be helpful too. But at some level, truth is very important. You don’t want to fake it.

From what I have observed, the truth of the matter is: People who work very hard and apply themselves and don’t give up and take responsibility for the outcomes on a long enough time scale, end up succeeding in whatever they’re focused on. And every success case knows this.

Richard Feynman used to say that he wasn’t a genius. He was just a boy who applied himself and worked really hard. Yeah, he was very smart, obviously. But that was necessary, but not sufficient. We all know the trope of the smart, lazy guy.

And I like to harass all of my friends—including Nivi—that one of the problems I notice with these guys is you’re just operating way below potential. Your potential is so much higher than where you are. You have to apply some of that into kinetic.

And ironically that will raise your potential because we’re not static creatures.

We’re dynamic creatures. And you will learn more. You will learn by doing. So just stop making excuses and get in the ring.

Nivi: You also like Schopenhauer. What have you learned from Schopenhauer, or is there anything surprising in his work?

Naval: Schopenhauer is not for everybody and there are many different Schopenhauers. He wrote quite a bit, and you could read his more obscure philosophical texts, like The World as Will and Idea, where he was writing for other philosophers. Or you could read his more practical stuff like On the Vanity of Existence.

He was one of the few people in history who wrote unflinchingly. He wrote what he believed to be true. He wasn’t always correct, but he never lied to you—and that comes across. He thought about things very deeply.

He didn’t care that much what people thought of him. All he knew was, “What I am writing down I know to be true.”

He also didn’t put on any airs. He didn’t use fancy language; he didn’t try to impress you.

People call him a pessimist. I don’t think that’s entirely fair. I think his worldview could be interpreted as pessimistic, but I just read him when I want to read a harsh dose of truth.

What Schopenhauer did uniquely for me is that he gave me complete permission to be me. He just did not care at all what the masses thought, and his disdain for common thinking comes out.

Now, I don’t necessarily share that—I’m a little bit more of an egalitarian than he was. But he really gives you permission to be yourself. So if you’re good at something, don’t be shy about it. Accept that you’re good at something.

And that was hard for me because we all want to get along. If you want to get along in a group, you don’t want to stand out too much. It’s the old line: The tall poppy gets cut.

But if you’re going to do anything exceptional, you do have to bet on yourself in some way. And if you’re exceptional at something, that does require you acknowledging that you’re exceptional at it—or at least trying to be—and not worrying about what other people think.

Now, you don’t want to be delusional either. Anyone who has been in the investing business is constantly hit by people who say, “I’m so great at something,” and they’re a little delusional. No, you don’t get to say you’re exceptional at something. Other people get to say you’re exceptional at something, and your mom doesn’t count.

Feedback from other people is usually fake. Awards are fake. Critics are fake. Kudos from your friends and family are fake. They might try to be genuine, but it’s lost in such a sea of fakeness that you’re not going to get real feedback.

Real feedback comes from free markets and nature. Physics is harsh: either your product worked, or it didn’t. Free markets are harsh: either people buy it, or they don’t. But feedback from other people is fake.

You can’t get good feedback from groups because groups are just trying to get along. Individuals search for truth, groups search for consensus. A group that doesn’t get along decoheres. It falls apart. And the larger the group, the less good feedback you’re going to get from it.

You don’t want to necessarily rely on feedback from your mom or your friends or your family, or even from award ceremonies and award systems.

If you’re optimizing your company to end up on the cover of a magazine, or to win an industry award, you’re failing.

You need customers. That’s your real feedback. You need feedback from nature.

Did your rocket launch?

Did your drone fly?

Did your 3D printer print the object within the tolerances that it was supposed to, in the time it was supposed to, in the cost budget that it was supposed to?

It’s very easy to fool yourself. It’s very easy to be fooled by others.

It is impossible to fool Mother Nature.