Why did Naval Ravikant suggest being in the top 1% in a specific field?

Why Does Naval Always Say "Reach the Top 1% in a Field"? What Exactly Does It Mean?

Hey, this is a fantastic question because it captures a core yet easily misunderstood concept in Naval's philosophy.

Many people immediately think, "Oh no, that sounds impossible! How could I ever become the world's best programmer, writer, or doctor?" when they hear "top 1%."

But actually, Naval isn’t telling us to compete head-on with billions worldwide through brute force. Instead, he’s teaching us the wisdom of a "multidimensional approach."

Let me break it down in simple terms why he emphasizes this:


Point 1: Escape "Involution" and Brutal Competition

Imagine a food street with fifty spicy hotpot stalls, all offering similar taste, prices, and décor. What happens?

To grab customers, they’ll fiercely slash prices: "The stall next door charges $20 per bowl? I’ll charge $18!" "They give free cola? I’ll give free plum juice!"... This is "involution." In this game, no one wins because everyone’s engaged in homogeneous competition—you’re easily replaceable.

Now, imagine a unique "French molecular gastronomy hotpot" restaurant opens on this street—the only one of its kind. Its target customers, pricing, and experience are entirely different. It doesn’t need price wars because anyone wanting its experience has to go there.

Being "top 1%" means becoming that "French molecular gastronomy restaurant."

When you’re exceptionally skilled and unique in a niche area, you escape the overcrowded, mediocre "middle ground" where people compete solely on price. You no longer win by being cheaper but by offering what "only I can deliver."

Simply put: While 99% battle it out in the red ocean, you create your own blue ocean.


Point 2: Gaining True "Leverage"

Naval often talks about "leverage"—doing more with less effort.

An ordinary accountant works an hour to earn an hour’s wage. That’s zero leverage.
A top tax expert (top 1% in a niche) writes a book on "legally minimizing taxes for startups." It sells to thousands, earning him money while he sleeps. That’s leverage.

When you’re top 1% in a field, your judgment, reputation, and skills become your most powerful leverage.

  • Your reputation works for you: Opportunities come to you—you don’t chase jobs.
  • Your judgment works for you: Deep expertise means your decisions yield exponentially greater returns.
  • Your creations work for you: Software, articles, or courses can serve countless people, generating ongoing income and influence.

Reaching the top 1% is the prerequisite for such leverage. Scarcity creates value and leverage.


Point 3: It’s Not About Becoming a "Generalist" But a Combo of "Specialists"

This might be the most crucial and enlightening point.

Naval isn’t telling you to become #1 in a giant field like "programming." He means combining skills to become top 1% in an interdisciplinary niche.

He once gave this example:

Suppose you’re a decent (top 25%) engineer.
You’re also a decent (top 25%) communicator/writer.

Individually, neither skill is world-class. Combined, you could become one of the "world’s best at explaining complex tech to non-technical audiences in simple language."
In this hyper-specific niche, you’re top 1%!

Another example:

  • You can draw (decently, top 20%)
  • You know psychology (decently, top 20%)
  • You’re great at telling jokes (decently, top 20%)

Combine them, and you might become a top creator of "healing comedy psychology comics." In this uncontested space, you’re No. 1.

This is Naval’s "Specific Knowledge"—a unique combination of skills fueled by your passions and talents. It can’t be taught; you must discover and build it.


To Sum Up: How to Understand and Practice This "Top 1%" Idea?

  1. Avoid red ocean battles: Stop trying to beat everyone in crowded, hyper-competitive fields.
  2. Find your skill combo: Ask: What am I naturally curious about? What unrelated skills do I have? Combine them to carve your own path.
  3. Play the long game: Expertise takes time and commitment. Embrace the "snowball" process—knowledge and reputation compound remarkably.
  4. The goal isn’t to defeat others but to become truly irreplaceable. When you’re irreplaceable, wealth, opportunities, and freedom find you.

Hope this clarifies things! Naval’s ideas often sound "intense" at first, but they ultimately teach us to work and live smarter and more freely.