At first glance, specialized knowledge as a road to riches is obvious enough. That’s why we have this thing called intellectual property. But I like how the book dispels the myth that having that knowledge is all. But it’s not, like how university professors have specialized knowledge but not rich. It completely bypasses the vain societal high water mark that being an intellectual/expert is a successful person. On the road to riches, knowing how to organize and use specialized knowledge is more critical.
When I read this chapter, I found it parallels what Naval Ravikant was saying about specific knowledge in his famous tweetstorm “How to get rich”. In fact, even the term is uncannily similar. Proof of great minds thinking alike? ?
Arm yourself with specific knowledge, accountability, and leverage.
Specific knowledge is the knowledge that you cannot be trained for. If society can train you, it can train someone else, and replace you.
Specific knowledge is found by pursuing your genuine curiosity and passion rather than whatever is hot right now.
Building specific knowledge will feel like play to you but will look like work to others.
When specific knowledge is taught, it’s through apprenticeships, not schools.
Specific knowledge is often highly technical or creative. It cannot be outsourced or automated.
~ @naval
More notes below. Sharing them here as reference for myself, and for anyone who might find it useful. This is not a book review, just raw notes lifted directly from the book, with some minor edits, interpretations and categorisations of my own.
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Think And Grow Rich (4)
Specialized knowledge: Personal experiences or observations, the fourth step to riches.
There are two kinds of knowledge - general vs specialized. Most professors in universities have but little or no money. They specialize on teaching knowledge, but they do not specialize in the organization, or the use of knowledge. KNOWLEDGE will not attract money, unless it is organized, and intelligently directed, through practical PLANS OF ACTION, to the DEFINITE END of accumulation of money.
People say “knowledge is power”. Knowledge is only potential power. It becomes power only when, and if, it is organized into definite plans of action, abd directed to a definite end.
The “missing link” in all systems of education known to civilzation today, may be found in the failure of educational institutions to teach their students HOW TO ORGANIZE AND USE KNOWLEDGE AFTER THEY ACQUIRE IT.
“Educate” comes from the Latin word “educo”, meaning to educe, to draw out, to DEVELOP FROM WITHIN. Any man is educated who knows where to get knowledge when he needs it, and how to organize that knowledge into definite plans of action. It was not essential that he have this knowledge in his own mind.
“Why should I clutter my mind with general knowledge, for the purpose of being able to answer questions, when I have men around me who can supply any knowledge I require?” - Henry Ford
The accumulation of great fortunes calls for POWER, and power is acquired through highly organized and intelligently directed specialized knowledge, but that knowledge does not, necessarily, have to be in the possession of the man who accumulate the fortune.
The problem with public schools
Anything acquired without effort, and without cost is generally unappreciated, often discredited; perhaps this is why we get so little from our marvellous opportunity in public schools.
The person who stops studying merely because he has finished school is forever hopelessly doomed to mediocrity, no matter what may be his calling. The wat of success is the way of continuous pursuit of knowledge.
Back of all IDEAS is specialized knowledge. Unfortunately, for those who do not find riches in abundance, specialized knowledge is more abundant and more easily acquired than IDEAS.
Capability means IMAGINATION, the one quality needed to combine specialized knowledge with IDEAS, in the form of ORGANIZED PLANS designed to yield riches. Remember, the IDEA is the main thing. Specialized knowledge may be found just around the corner.