The One Rule That Created Japan's Best Book Club: Discussing Books That Are Not Easily Understood

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Jul 29, 2023

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The One Rule That Created Japan's Best Book Club: Discussing Books That Are Not Easily Understood

In Japan, there is a book club that has gained a reputation as the best in the country. What makes this book club so special? It turns out that the one rule they have set for themselves is what sets them apart from the rest. Instead of discussing books that are easily understood and enjoyed, they focus on books that are confusing and challenging.

According to the founder of the book club, "What makes book club meetings interesting is not discussing books that we found to be incredibly interesting and easy to understand. It's actually the opposite. We find that discussing books that left us confused and perplexed make for the most engaging and thought-provoking conversations."

This approach may seem counterintuitive, but it actually makes a lot of sense. When we read a book that we easily understand and enjoy, there is little room for discussion and exploration. On the other hand, when we read a book that leaves us scratching our heads, we are forced to delve deeper into its themes, symbols, and meanings. This leads to more meaningful and stimulating conversations.

The book club's focus on challenging books also reflects the idea that growth and learning often come from stepping outside of our comfort zones. By reading books that are difficult to comprehend, members of the club are constantly pushing themselves to expand their knowledge and understanding. This not only enriches their reading experience but also helps them grow as individuals.

Interestingly, this concept can also be applied to the world of investing. Altos Ventures, a leading venture capital firm, has developed a set of four key questions that guide their investment decisions. These questions are designed to help them evaluate the potential of a new investment and determine whether it is likely to generate great returns.

The first question Altos Ventures asks is whether the company generates cash. This is an important consideration because companies that can generate positive cash flow are more likely to weather economic downturns and have control over their own destiny. High burn rates, on the other hand, can be a cause for concern.

The second question looks at the moat or competitive advantages of the company. Altos Ventures believes that defensibility is more important than profitability. Companies with strong competitive advantages, such as network effects or intellectual property, are more likely to sustain long-term success.

The third question focuses on the relationship between the venture capital firm and the company's founders. Altos Ventures has learned that the people and the relationship they have with them can be a crucial factor in a company's success. If the relationship is not great, they may not have a clear understanding of what is happening within the company.

The fourth and final question relates to liquidity. Altos Ventures believes that key people within a successful company should have enough liquidity to reduce financial stress and focus on the long-term success of the business. However, if the desire for liquidity starts to exceed a certain level, it may be a sign that it is time to exit.

These four questions provide a framework for evaluating investment opportunities and making informed decisions. They also reflect the importance of relationships, growth, and taking risks in the world of investing.

In conclusion, the one rule that created Japan's best book club and the four questions that guide Altos Ventures' investment decisions may seem unrelated at first glance. However, they both share a common theme - the importance of embracing challenges and stepping outside of our comfort zones. Whether it's through reading difficult books or making investment decisions, growth and learning come from pushing ourselves to explore the unknown.

Actionable Advice:

  • 1. Embrace challenges in your reading and seek out books that are difficult to understand. Engaging in conversations about these books can lead to deeper insights and personal growth.
  • 2. When making investment decisions, consider the four key questions posed by Altos Ventures: Does the company generate cash? What is the moat or competitive advantage? How do you feel about the relationship with the founders? How much liquidity is needed and desired?
  • 3. Remember that growth and learning often come from stepping outside of your comfort zone. Embrace challenges, take risks, and be open to new experiences.

By following these pieces of advice, you can enhance your reading experience, make informed investment decisions, and continue to grow and learn in all aspects of life.

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