One of the greatest lies of society is that competition is a good thing.
Those of us who are not billionaires are taught that competition is good.
We grow up believing that competition challenges us and that it helps us grow, but billionaires would disagree with this.
In the book “How To Be a Billionaire: Proven Strategies From The Titans of Wealth,” Martin S. Fridson, who did an extensive survey and study of the world’s billionaires, says one quality that all billionaires share is that they never compete. They dominate.
Dominating was how John D. Rockefeller accumulated his billions and was how Bill Gates became the world’s first centibillionaire.
It was the decision to dominate a market and not worry about competing in a market that made these men the richest of their times.
In economics, there are many types of markets, such as perfectly competitive markets and monopolized markets.
Perfectly competitive markets are often considered to be ideal, but in the long run the net profit for businesses is zero. No one profits in a perfectly competitive market.
Who is competition benefiting then?
Competition only benefits the customer.
In a perfectly competitive market, customers will have more variety and ability to choose, meaning competition is great for the consumers, but not for the owners.
If you own a business, you never want to compete. You always want to be the one dominating because profit is always going to be dependent on some level of differentiation, whether that’s real or perceived.
Avoid the conventional wisdom that competition is good. Competition will tire you and beat you down so hard that it will prevent you from ever achieving your dreams.
You must find a way to win in life, not just compete.
It’s like Peter Thiel, the billionaire investor, says in the book “Zero To One,”
“If you can recognize competition as a destructive force instead of a sign of value, you’re already more sane than most.”