Success has a dangerous side effect.
It makes us arrogant. We act like a duck on a pond when it’s raining, we rise up and assume it’s because of our own genius, not realizing the water level (the market) is simply lifting everyone.
When the rain stops, that duck is stuck on the ground.
In the investing world, this happens constantly. A tech founder makes millions in software, assumes they have the Midas touch, and suddenly starts betting on biotech or obscure commodities. They leave their zone of genius and enter a zone of speculation. They almost always lose.
To build true "Relax to Rich" wealth, you need to do the opposite. You need to find a barrel, fill it with fish, and shoot.
The Legend of Mrs. B
Let me tell you about Rose Blumkin (Mrs. B). She founded the Nebraska Furniture Mart and became a business legend not because of what she knew, but because of what she refused to know.
Mrs. B was a force of nature. Even in her 90s, she operated out of a golf cart, working seven days a week. She came from Russia with nothing, couldn't read or write English well, and didn't know a thing about formal accounting or "accruals."
But if you put her in a room, even a strangely shaped one, she could glance at the floor and tell you exactly how many square yards of carpet you needed, multiply it by the price, add the tax, and give you the final cost in her head. She was never wrong.
She earned millions because she was a genius at one thing: selling furniture and carpet at rock-bottom prices.
The $1,400 Courtroom Lesson
Her strategy was so effective that competitors couldn't keep up. They actually sued her for "unfair trade," claiming she must be selling below cost to destroy them.
When she went to court, she didn't hire a fancy legal team. She represented herself. She told the judge:
"Look. Everyone else sells this carpet for $7 a yard. It costs me $3. If I sell it for $4, I make a profit. If you want me to rob people, I'll sell it for $5. But tell me, how much do you want me to rob them?"
The judge threw out the case, and ended up buying $1,400 worth of carpet from her.
Define Your Circle (And Never Leave It)
Mrs. B was brilliant, but her true superpower was discipline.
If you tried to talk to her about the stock market, she wouldn't give you a dime. If you pitched her a complex financial derivative or a tech startup, she’d walk away. She knew exactly where the line was drawn between "what I know" (furniture/real estate) and "what I don't know" (everything else).
She would buy a $5 million building on a handshake because she understood real estate value. But she wouldn't go one inch outside that circle.
How This Applies to You 🫵
In today's market, we are bombarded with noise. AI startups, crypto tokens, NFTs, and volatile foreign markets. It is tempting to try and catch every wave.
Don't.
You don't need to be an expert on everything to get rich. You just need to be right about a few things that you truly understand.
If you understand semiconductor supply chains, invest there.
If you understand consumer retail brands, stick to that.
If you understand nothing but index funds, that is a valid circle too!
The moment you step outside your circle to chase a trend you don't understand, you stop investing and start gambling.
Stay in your barrel. The shooting is much easier there.
What is the one industry you understand better than anyone else? Reply and let me know, I read every email.
To your compounding success,
William
Editor, Relax to Rich Club