Elon Musk showed up to his own birthday party in 2008 and nobody was there. He had invited friends. Most of them had stopped returning his calls because he had borrowed money from nearly everyone he knew and the companies were failing publicly.
His brother Kimbal was the only one who came. They sat together in an almost empty room and Elon said something Kimbal has never forgotten. He said "I think I used up all my goodwill." Not dramatically. Factually. Like he was reading a balance sheet of human relationships and the number had hit zero.
This was the man who had made his friends millionaires from PayPal. The same people who became wealthy because of him were now avoiding his calls because his new ventures looked like they were going to fail. The loyalty evaporated at exactly the same speed as the bank balance.
Kimbal said Elon didn't seem angry about it. He seemed like a man confirming something he had always suspected. That most relationships are transactional and the transaction was no longer favorable.
The loneliest birthday in Silicon Valley history happened to a man who had made more people rich than almost anyone in the room. And the lesson it taught him about loyalty and isolation is visible in every decision he has made since.
He stopped expecting people to stay. He started expecting them to leave. And he built everything after that accordingly.
The biggest mistake investors make with profit-taking is going all-or-nothing.
They either never sell and watch gains disappear, or they sell too much too early and kill their upside.
That’s why my main rule is pretty simple. If a stock is up 50%, I trim 5%.
I’m not selling the whole position and I’m not trying to call the top. I’m just paying myself a little while still letting the majority of the position ride.
Then I take that cash and recycle it. Sometimes that means DCAing back into the same stock if it pulls into a better zone. Sometimes it means moving that cash into another stock in my portfolio with a better setup or better risk/reward.
That’s what a lot of people miss. Taking profits isn’t just about selling. It’s about freeing up cash so you can attack better opportunities.
The goal is simple:
Trim strength, redeploy into better risk/reward, and keep compounding.
I finally understand what Machiavelli meant when he said, “Never play fair in a game where others cheat.” It doesn’t mean become evil. It means stop being naive. Stop bringing honesty to people who study manipulation, stop giving access to people who weaponize closeness, and stop expecting clean hands from people who already showed you they’ll throw dirt. Sometimes wisdom is not revenge. Sometimes wisdom is learning the rules of the room before the room uses your goodness against you.
My favorite @elonmusk quote that I often send friends:
Do not fear losing. “You will lose,” Musk says. “It will hurt the first fifty times. When you get used to losing, you will play each game with less emotion.” You will be more fearless, take more risks.
Your CEO should be strong.
Your CTO should be wise.
Your COO should be wicked, cunning, of mysterious origins, fluent in the dark arts, blurry in pictures,
NO white person alive today owned slaves. Teach your kids that.
NO black person alive today was born a slave. Teach your kids that.
Not all white people owned slaves back then. Teach your kids that.
Millions of white people fought and died to end slavery. Teach your kids that.
People should not inherit guilt from their ancestors. Teach your kids that.
People should not inherit victimhood from their ancestors. Teach your kids that.
You are responsible for your own actions, not the actions of people who lived 200 years ago. Teach your kids that.
America is not perfect, but it is not uniquely evil. Teach your kids that.
The West is responsible for some of humanity's greatest advances in freedom, science, medicine, and prosperity. Teach your kids that.
Loving your country is not racism. Teach your kids that.
Wanting secure borders is not racism. Teach your kids that.
Wanting safe communities is not racism. Teach your kids that.
Wanting merit over quotas is not racism. Teach your kids that.
Questioning political narratives is not racism. Teach your kids that.
People should be judged by their character, not their skin color. Teach your kids that.
History should be taught honestly, not used as a weapon. Teach your kids that.
A nation that teaches its children to hate their heritage will not survive. Teach your kids that.
Your country is your home. Protecting it is not something to be ashamed of. Teach your kids that.
You do not owe an apology for being born. Teach your kids that.
Never let fear of being called names stop you from speaking the truth as you see it. Teach your kids that.
Most investors have dozens of rules.
Stanley Druckenmiller has one.
He ran money for 30 years without a single losing year.
$1,000 invested with him in 1981 became $2.8 million by 2010.
No losing year. Ever.
And it all comes down to one principle most investors do the exact opposite of.
🧵 A thread
3% on $1,000 is $30.
3% on $10,000 is $300.
3% on $100,000 is $3,000.
3% on $1,000,000 is $30,000.
3% on $10,000,000 is $300,000.
You don't need bigger returns, dude.
You need more capital.