Richard Koch — Revisiting the 80/20 Principle, The Power of Optimistic Journaling, Studying History to Improve Investing, and The Grand Beliefs of Winners (Plus: The Toxic Beliefs of Losers) (#680)

“M. Scott Peck wrote a book that begins with the words ‘Life is hard. This is his one of the great things in life. With this understanding, you can expect things to get tough and get through them because you can take pride in overcoming them. But if you expect no difficulties, you will be clearly disillusioned. ”

— Richard Koch

Richard Koch (@Richard Koch8020) is an entrepreneur, investor and former strategy consultant, author of several books About business and ideas, including four on how to apply the 80/20 principle to any field.

His investments have grown at a compound annual rate of 22% for 37 years and include Filofax, Plymouth Jin, Belgo, Betfair, FanDuel and Auto1. He worked for the Boston Consulting Group and was a partner at Bain & Co. before launching his LEK with Jim Lawrence and Ian Evans, a specialist during his six years at Richard’s three from to his 350.

1997, Richard’s book 80/20 principle He reinterpreted the Pareto Principle, which states that most outcomes come from a few causes, and extended it beyond its familiar application in business to personal life, happiness, and success. Rewritten in 2022, the book has sold over a million copies and been translated into nearly 40 languages, making it a business classic. It was named GQ Voted as one of the top 25 business books of all time.Richard’s latest book Undeserved Success and How to Achieve It.

He will publish two more books in the future. 80/20 Belief, which Identify the few beliefs in our lives that strongly influence our actions and, in turn, the results we get. 80/20 every daya collection of 365 short daily readings using the 80/20 philosophy of achieving a good life.

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Want to know when Richard Koch was last on the show? Listen to conversations here that discussed investing in mathematically difficult people, the secrets of the Oxford Bodleian Library, and writing. 80/20 principleHappiness Optimization, Different Diary Styles, 9 Landmarks of Success, Nelson Mandela’s Unique Intuition, and more.

What’s your favorite quote or lesson from this episode? Let me know in the comments.

Scroll down below to view the links and view the notes…

Links selected from episodes

• connect with Richard Koch:

website | twitter

• The Oxford Experience at Wadham University, Oxford | Contact form
• Richard Koch on Mastering the 80/20 Principle, Achieving Unfair Success and the Art of Gambling | The Tim Ferris Show #466
• Undeserved Success and How to Achieve It: Unlocking 9 Secrets of People Who Changed the World by Richard Koch | Amazon
• The 80/20 Principle: The Secret to Doing More with Less by Richard Koch | Amazon
• The easiest way to talk about places | What3Words
• Glastonbury Contemporary Performing Arts Festival
• Setting Fear: The Most Valuable Exercise I Do Every Month | Tim Ferris
• How to Increase Your Lucky Surface Area | Codus Operandi
• Tranches: Definition, Purpose and Examples in Finance | Investedia
• Betfair | Wikipedia
• Bookmaker | Wikipedia
• What are Vig and Overround? | Statistical Issues
• Filofax Revitalization Strategy (Richard Koch) | Planet Perry
• Bergo | Wikipedia
• Is Primus Gin The Most Unlucky Spirits Brand Ever? | Just Drink
• Mackerel | The art of tasting Portugal
• Counterfactual | The Stanford Encyclopedia of Philosophy
• Counterfactual History and the Outbreak of World War I | American Historical Association
• “No Lenin or Hitler?” Simon Sebag Montefiore’s Thoughts on the Counterfactual of the Bolshevik Revolution | Review of the History of the Counterfactual
• Expected Value Definitions, Formulas, and Examples | Investedia
• Global Management Consulting Firm | Bain & Company
• Strategic Management Consulting | Boston Consulting Group
• What is the Growth Share Matrix? | Boston Consulting Group
• Does marriage really make people happy? | Psychology Today
• Harvard professor: Winning the lottery doesn’t make life happier | CNBC
• Longevity: U.S. Life Expectancy History and Projections, 1960-2060 | U.S. Census Bureau
• A Research-Based Approach to Relationships | The Gottman Institute
• Where can you be happiest? | Richard Koch
• Cape Town Tourism
• Doris Day: Quesera, Sera | YouTube
• Pros and Cons of Immigrating to Portugal as a Foreigner | Portugal
• The Road Less Taken: A New Psychology of Love, Traditional Values, and Spiritual Growth by M. Scott Peck | Amazon
• Tom Mariozzi: Happiness is reality minus expectations | Knoxville News Sentinel
• Meditation by Marcus Aurelius | by Amazon
• Church or cult?Inside Moonies’ ‘delusional world’ | Financial Times
• Strategic Consulting Company | Rec Consulting
• Mental Toughness Training for Sport: Achieving Athletic Excellence by James E. Loehr | Amazon
• (UK) Rumble in English Slang | Able2Know
• Fundamental Buddhism: Karma Theory | Buddhanet
• The Lost Religion of Love and Optimism | Richard Koch
• Log Song | Ren & Stimpy Show
• England World Cup 1966 Stamp | Explore Stamps
• Experts predict advances in cancer research and treatment | American Association for Cancer Research
• English Patriotic Anthem: Spanish Armada | English Folk Project
• Churchill: Walking with Fate by Andrew Roberts Amazon
• “I will save London” | The Churchill Project
• Fanduel | Wikipedia
• Europe’s Largest Used Car Wholesale Platform | Auto1
• The Oxford Experience | Oxford University School of Continuing Education
• Wadham College, University of Oxford
• Oxford Tutorials | Oxford Study Abroad Programs
• The Oxford Experience at Wadham University, Oxford Inquiry form
• Flexible Working Options | Rec Consulting
• Step Brothers | Prime Video
• Gathering with a Purpose: How to Host a Jeffersonian Dinner | Generating Purpose
• dialog
• Understanding Cartoons: The Invisible Art by Scott MacLeod (Note: Tim thinks the first three chapters are a bit slow and suggests skipping them.)
• The Eight Ages of Pablo Picasso | Daily Art Magazine
• Colin Smith | Tate Britain
• What Steve Jobs Learned from the Bauhaus | Artistic
• Why Steve Jobs’ Passion For Calligraphy Is An Important Example For You | Entrepreneur
• Dan Carlin’s Hardcore History Podcast
• The Daily Stoic: 366 Meditations on Wisdom, Perseverance, and the Art of Living by Ryan Holliday and Stephen Hanselman | Amazon

Show memo

• [06:18] What3Words.
• [12:59] Reflections in a pond with bright fish.
• [15:04] A diary for optimistic investing.
• [17:14] Betfair vs bookmakers.
• [27:42] How is history linked to investment strategy?
• [33:47] allocation of probabilities.
• [36:56] cow, star, question mark.
• [45:41] 80/20 happiness.
• [57:36] Quesera, Sera’s Confusion.
• [1:06:48] Harmful beliefs and terrible templates.
• [1:11:24] Meeting with Bill Bain.
• [1:14:41] attractive school.
• [1:15:08] Why Bain & Company was a better fit than BCG.
• [1:17:34] formula.
• [1:25:04] Identify your own harmful beliefs.
• [1:35:04] Contrary to harmful beliefs.
• [1:41:53] Churchill’s instructive delusion.
• [1:47:46] The formation of grandiose beliefs.
• [1:51:06] How harmful grand beliefs can be.
• [1:53:37] pattern break.
• [1:56:08] The Oxford Experience for 99/1 person.
• [2:09:04] Bespoke requests for hands-on art.
• [2:11:33] practical beauty.
• [2:18:55] parting thoughts.

Other quotes from an interview with Richard Koch

“The 80/20 principle permeates all my thinking. Not only about my own success and money, but also about things like happiness: ‘What do I need to do to achieve what I want?’ Let’s go?” I try to think.”
— Richard Koch

“I go around asking people, ‘Who are your five best friends in the world?'” And people come up with lists. Then I say, “Who are the five people you spend the most time with?” And very often the list is completely different. It shows that the person may be happy, but definitely against direction. ”
— Richard Koch

“M. Scott Peck wrote a book that begins with the words ‘Life is hard. This is his one of the great things in life. With this understanding, you can expect things to get tough and get through them because you can take pride in overcoming them. But if you expect no difficulties, you will be clearly disillusioned. ”
— Richard Koch

“Delusion can be very helpful at times.”
— Richard Koch

“Happiness is probably not the most selfish thing you can pursue, because if you are happy, you will make many other people happy. It will bring unhappiness to the people of
— Richard Koch

person mentioned

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