Why is judgment more valuable than knowledge?

Here is the translation:

Hello there, glad to chat about this topic. This is indeed a core idea in Naval’s philosophy, and a truth many people gradually understand throughout their growth.

Let me keep it simple. I’ll explain it in plain language with a few analogies—you’ll definitely get it.

Analogy: You're a Chef, Not a Recipe Collector

Imagine this:

Knowledge: Is like recipes, ingredients, and all the theory about cooking. You know ten thousand recipes, recognize every spice in the world, and can even rattle off the nutritional chart for each ingredient. That’s pretty impressive, right? You possess a vast amount of knowledge.
Judgment: Is your craftsmanship as a chef. You know that on this slightly humid day, the dough needs a little extra flour. You know how to adjust the heat for that particular piece of beef with more connective tissue. You know that when the customer says "just make something light," they actually want some flavorful vegetables, not a plate of boiled cabbage.

Now, the question is, who can actually create delicious meals? Who can run a Michelin-starred restaurant?

The answer is obvious—it’s the chef with judgment.

A person with only knowledge can be a food critic, write books, or teach. But their knowledge itself doesn’t directly translate into a great dish. A chef with judgment, even if they know fewer ingredients or recipes, can use their limited resources to make the best decisions based on the actual situation, ultimately producing amazing dishes.

This is the first level of why judgment is more valuable than knowledge: Knowledge is static raw material, while judgment is a dynamic, value-creating skill.

Why is Judgment Especially Important Today?

1. Knowledge Has Experienced "Inflation"

In the past, being erudite was highly respected because acquiring knowledge back then was costly—it involved extensive reading and finding masters.

But now? You can ask a search engine or AI and get an answer within seconds. Knowledge has become as cheap and accessible as air and water. Everyone can easily possess massive amounts of knowledge.

When something is available to everyone, its value naturally decreases. It’s like gold—if it’s everywhere, it’s no longer valuable.

Therefore, simply competing over who knows more holds little meaning today.

2. Judgment is Scarce and Enables "Leverage"

What is judgment? Simply put, it’s the ability to make the right decisions despite incomplete information and an uncertain future.

Investing: Faced with thousands of stocks, you might read all the financial reports (knowledge), but deciding which to buy, when to buy, and when to sell depends on judgment. One correct judgment can yield hundred-fold or thousand-fold returns.
Entrepreneurship: There are countless market directions, and competitor information is readily accessible (knowledge), but choosing the right field, building your core product, and assembling a team all depend on judgment. One crucial judgment can determine the life or death of a company.
Life: Choosing which city to live in, who to marry, whether to change jobs—these have no standard answers (knowledge). Every step relies on your self-awareness and prediction of the future, that is, your judgment.

Naval emphasizes the term "leverage." Judgment is your most important leverage in life. Someone with excellent judgment can use a single small decision to move immense resources and generate huge returns. Conversely, vast amounts of knowledge are futile, even disastrous, if paired with poor judgment.

What is the Relationship Between Knowledge and Judgment?

At this point, you might ask, "So is knowledge unimportant?"

Of course not.

Let’s return to the chef analogy. A top chef doesn’t develop judgment out of thin air. It’s precisely because they’ve encountered vast amounts of ingredients (knowledge), cooked countless dishes (practice), and failed many times (experience) that they gradually hone that near-intuitive judgment.

So, the relationship is:

Knowledge is the foundation upon which judgment is built, but it is not judgment itself.

You can think of knowledge as sand and cement, while judgment is the blueprint and construction ability that turns them into a solid building. Even with mountains of sand and cement, without a good blueprint and skilled builders, you’ll just have a pile of waste.

To Summarize

Different Sources of Value: Knowledge is "knowing what," while judgment is "knowing what to do." The former stores information; the latter creates value.
Different Scarcity Levels: In the information age, knowledge is at your fingertips, but high-quality judgment is extremely rare and precious.
Different Modes of Action: Knowledge provides you with options, while judgment helps you make choices. Success or failure in life and career often hinges on a few critical choices.

Therefore, our pursuit of learning shouldn’t be merely to become a walking "knowledge USB drive." Instead, we should use that knowledge as fuel. Through continuous practice, reflection, and summarization, we ignite the engine of our judgment. This is the true driving force that can guide us through uncertainty and lead to success.