Hill, Napoleon - Think and Grow Rich

The Ralston Society, 1937, [Surrounding Knowledge] Grade 4

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Have you ever paused to think about what you are doing subconsciously as a matter of routine? How often you procrastinate? The need to think through our actions in a world where everyone wants to grab the attention has possibly never been greater, which is why I think Think and Grow Rich written by Napoleon Hill is more important than ever. This is a book for anyone looking to develop his or her thought process and improve as an investor.

Hill, an American author that focused his writings on how to achieve success, got the assignment to write a book on the methods used by successful people from the steel king Andrew Carnegie. Thus, the text doesn’t reflect the author’s experiences but instead the insights of many of the most effective people and businessmen through history. Hill did not get paid but accepted the offer anyway and spent 25 years gathering facts on people as Abraham Lincoln, Henry Ford, Thomas Edison and Andrew Carnegie among others.

Within 50 years the book had sold over 20 million copies and successful people still today often recommend the book. Among its supporters is Warren Buffett. Buffett and his partner Charlie Munger often mention the importance of thinking. To think through the long-term prospects and competitive advantages of businesses is seen as one of the keys to successful investing.

The book is about having the correct mindset and to strive for achievement. The importance of setting up goals together with a definite due date are some of the key factors to influence the subconscious mind. A person’s correct mindset is set by his desire and faith plus continuous repetition. Marcus Aurelius once said "the things you think about determine the quality of your mind. Your soul takes on the color of your thoughts" which is a quote that summarizes a lot of this book. In order to achieve success, the thoughts need to lead to action.  Furthermore, few people have succeeded alone. Instead they have progressed with the help of others. Hence, it’s of great value to have people to brainstorm with and also a loving spouse.

The book is easy to read and can be used as a step-by-step guide on how to think and act in order to succeed in life. In the first version, it consisted of thousands of pages which was shorted down to one thousand pages in a later version and then to under 250 pages in this version. A few inspiring examples from the book are about Henry Ford and his V8 engine which his scientists said was impossible to build - but Ford pushed them to triumph. Another describes how Charles M. Schwab convinced JP Morgan and Andrew Carnegie to make a deal which transformed the steel industry.

I think Hill summarizes the ways to become successful in a great way and if the concepts are followed I am confident they will also lead to riches. However, if the book is read only once it probably won't make much difference. In investment circles one of the key factors in getting an edge is having a truly long-term view. In the same mold, I would set the importance of having a good thought process. This is exactly what Think and Grow Rich will help the reader with.

Niklas Sävås, November 23, 2017