... that of course in theory there’s no difference between theory and practice, in practice there is.
Instead of going from theory to practice, I went from practice to theory.
Instead of going from theory to practice, I went from practice to theory.
2/
Nassim: When you’re judged by reality; it’s a complete different dynamics than when you’re judged by your peers.
Businesses where you’re judged by peers – like the restaurant business, academia, journalism – will rot...
Nassim: When you’re judged by reality; it’s a complete different dynamics than when you’re judged by your peers.
Businesses where you’re judged by peers – like the restaurant business, academia, journalism – will rot...
...In trading, you’re just judged by your P&L; if you lose money, no matter how nice you are, it’s not gonna work.
3/
Nassim: Journalists try to impress other journalists, that’s their business.
They’re not trying to work on the reader.
So you can have monoculture and become very vulnerable businesses.
When you have a P&L you can’t really bullshit your way through life.
Nassim: Journalists try to impress other journalists, that’s their business.
They’re not trying to work on the reader.
So you can have monoculture and become very vulnerable businesses.
When you have a P&L you can’t really bullshit your way through life.
4/
Naval: We see problems in tech industry too.
There’s a lot of tracking of inputs instead of tracking outputs.
A great engineer can create a billion dollars worth of value, look at Satoshi Nakamoto, and a bad engineer can cost you value.
Naval: We see problems in tech industry too.
There’s a lot of tracking of inputs instead of tracking outputs.
A great engineer can create a billion dollars worth of value, look at Satoshi Nakamoto, and a bad engineer can cost you value.
5/
Naval: There’s no point in bullshitting financial assets because you can just go short it, just put your money where your mouth is.
But people get into arguments about, online, whether bitcoin is going to hit a certain price by a certain date...
Naval: There’s no point in bullshitting financial assets because you can just go short it, just put your money where your mouth is.
But people get into arguments about, online, whether bitcoin is going to hit a certain price by a certain date...
...You don’t have to argue online, you can go short it or just take a position.
6/
Nassim: "Thou shalt not have the upside without bearing the downside yourself”, you need to own your own risk.
That's the whole idea of Skin in the Game.
The principle of symmetry.
Nassim: "Thou shalt not have the upside without bearing the downside yourself”, you need to own your own risk.
That's the whole idea of Skin in the Game.
The principle of symmetry.
7/
Nassim: Silver Rule - “don’t do to others what you don’t want them to do to you”, is vastly more robust than Golden Rule - “do to others as you want them to do to you”.
With GR, I can force you to eat Lebanese Kibbeh, because that’s what I’d like to do.
Nassim: Silver Rule - “don’t do to others what you don’t want them to do to you”, is vastly more robust than Golden Rule - “do to others as you want them to do to you”.
With GR, I can force you to eat Lebanese Kibbeh, because that’s what I’d like to do.
8/
Nassim: There’re a lot of virtues that are fake because anybody can signal these virtues.
But risk-taking is real, you cannot fake risk-taking, you cannot fake risk; you can fake virtue.
Any virtue that doesn’t entail some kind of sacrifice or cost is not virtue.
Nassim: There’re a lot of virtues that are fake because anybody can signal these virtues.
But risk-taking is real, you cannot fake risk-taking, you cannot fake risk; you can fake virtue.
Any virtue that doesn’t entail some kind of sacrifice or cost is not virtue.
9/
Nassim: What’s fake virtue?
This is in a hotel room, they tell you “save the planet, dear guest, save the planet”.
That’s what I call virtue signaling.
Don’t join an NGO because all they do is virtue signaling.
Start a business and fail.
Nassim: What’s fake virtue?
This is in a hotel room, they tell you “save the planet, dear guest, save the planet”.
That’s what I call virtue signaling.
Don’t join an NGO because all they do is virtue signaling.
Start a business and fail.
10/
Nassim: People are willing to accept inequality if the person who is richer is taking risks.
People are never upset about Steve Jobs being richer than others.
But you don’t accept inequality if it’s a rent-seeking CEO making fifty times a worker makes.
Nassim: People are willing to accept inequality if the person who is richer is taking risks.
People are never upset about Steve Jobs being richer than others.
But you don’t accept inequality if it’s a rent-seeking CEO making fifty times a worker makes.
11/
Naval: People with a political agenda will conflate equality of opportunity with equality of outcome.
Equality of outcome is communism, it’s a terrible thing, it requires coercion.
Equality of opportunity is what you strive for.
Naval: People with a political agenda will conflate equality of opportunity with equality of outcome.
Equality of outcome is communism, it’s a terrible thing, it requires coercion.
Equality of opportunity is what you strive for.
12/
Nassim: You have to play the game to know what you need to know. From the inside not from the outside.
Nassim: You have to play the game to know what you need to know. From the inside not from the outside.
13/
Naval: In early-stage investing, you tend to avoid teams that look incredibly polished.
They have good powerpoints, they’re well dressed, they present well...
Naval: In early-stage investing, you tend to avoid teams that look incredibly polished.
They have good powerpoints, they’re well dressed, they present well...
...What you want is the person who’s been busy in front of the computer, flustered, gets up in front of a whiteboard, explains things a little too complicated but has the genuine substance.
14/
Nassim: Anybody who’s capable of writing a business plan, you don’t want to invest with them.
Nassim: Anybody who’s capable of writing a business plan, you don’t want to invest with them.
15/
Nassim: You don’t understand random events, you can’t predict what’s going to happen.
But you can pretty much tell how the random event would hit you.
So you try to position yourself in a way to benefit more than you would lose from a random event...
Nassim: You don’t understand random events, you can’t predict what’s going to happen.
But you can pretty much tell how the random event would hit you.
So you try to position yourself in a way to benefit more than you would lose from a random event...
...That’s the idea of asymmetry.
Tinkering, trial and error – has a really positive asymmetry.
Trial and error will always outperform design.
We’re vastly more intelligent, we have an IQ of a thousand when we do trial and error.
Tinkering, trial and error – has a really positive asymmetry.
Trial and error will always outperform design.
We’re vastly more intelligent, we have an IQ of a thousand when we do trial and error.
16/
Naval: Bitcoin is also antifragile in the sense that every time it survives a hack or an attack or a failure of some part of the ecosystem, the developers improve the code, they improve the system, and then it gets better at surviving future shocks.
Naval: Bitcoin is also antifragile in the sense that every time it survives a hack or an attack or a failure of some part of the ecosystem, the developers improve the code, they improve the system, and then it gets better at surviving future shocks.
17/
Naval: People give out awards like VC of the year or Angel of the year and so on, and they’re all nonsense because the reward is in investing and making the money.
Naval: People give out awards like VC of the year or Angel of the year and so on, and they’re all nonsense because the reward is in investing and making the money.
18/
Naval: Lindy just means sort of stands the test of time, which is like any book that’s been around for thousands of years is likely to be around for thousands of more years. The best predictor of the survivability of something is how long it has survived. Another e.g. - fork
Naval: Lindy just means sort of stands the test of time, which is like any book that’s been around for thousands of years is likely to be around for thousands of more years. The best predictor of the survivability of something is how long it has survived. Another e.g. - fork
19/
Naval: One of the big things in history was separating the state from church. And the interesting thing with crypto is we’re trying to separate money from the state & if it successfully happens, will probably be just as impactful and take quite a while to play out.
Naval: One of the big things in history was separating the state from church. And the interesting thing with crypto is we’re trying to separate money from the state & if it successfully happens, will probably be just as impactful and take quite a while to play out.
20/
Nassim: Minority Rule - kosher person will never drink not kosher, but the nonkosher can drink kosher. There's an asymmetry.
Nassim: Minority Rule - kosher person will never drink not kosher, but the nonkosher can drink kosher. There's an asymmetry.
21/
Naval: The sad thing is the minority rule kind of shows that if these people are intransigent enough they actually run and control society, they establish the laws for the rest of us.
Naval: The sad thing is the minority rule kind of shows that if these people are intransigent enough they actually run and control society, they establish the laws for the rest of us.
22/
Naval: I recommend everybody just devour all of Nassim’s books; it’ll improve your decision-making in life, in crypto … how you should conduct yourself honorably and morally.
Naval: I recommend everybody just devour all of Nassim’s books; it’ll improve your decision-making in life, in crypto … how you should conduct yourself honorably and morally.
23/
Video Link:
Video Link:
