VENTURE CAPITAL MINDSET: Become the candidate that every venture capital firm would like to hire

Assets with similar characteristics, market behavior, and that comply with the same laws and regulations, are grouped together in what are called “asset classes”.

To reduce the risks of investing in liquid, yet sensitive assets, investors balance their portfolios by investing in other types of assets that typically include one or more of the following attributes: long-term, high-risk, or illiquid investments associated with higher returns; a low correlation with traditional assets; inflation-hedging benefits

The main characteristic of any asset is its liquidity, or the ease and speed at which one can buy or sell this asset for its market price. The most liquid asset is obviously cash—you can purchase it immediately or spend it on purchasing other assets.

There are three main components in any system: the elements, their interconnections, and their functions or purpose.

When changes occur in a system in a consistent pattern, a feedback loop is created. For example, if you implement certain activities that are described in the book, but none of your job applications have received a response, it only means that you need to change something in your activities.

Greater returns come with greater risk, and venture capital has the greatest risk among all the asset classes in which institutions invest.

“Makers” tend to view their peers’ ideas through the lens of “how likely is this to succeed in the future” instead of “how well does this act resemble what worked best in the past”.