1/ Humans often don't act independently. We simply don't have the time or resources to make every decision on our own. Nature has programmed humans to herd and fighting that instinct at the right time is a trained response you can get better at. Learning from mistakes helps.
2/ Humans herding can create feedback loops that can amplify like Jimmy Hendrix used feedback with his guitar. That feedback can be good or bad. Businesses work to create beneficial feedback loops. Investors work to spot businesses that create those feedback loops successfully.
3/ "Emergence" occurs when local behavior transforms into global phenomena disconnected from its origins. Unexpected things happen in complex systems. Cause and effect aren't simple to untangle ex post. The best response is to stay humble when making predictions. Weird happens.
4/ People acting with purpose can create highly beneficial feedback loops despite the difficulty of making forecasts. Most emergent surprises are positive. If feedback is harnessed in the right way, great things can happen. This book has many examples.amazon.com/Flywheels-Citi…
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