Sizhao Yang Profile picture
Dec 12, 2017 26 tweets 5 min read Twitter logo Read on Twitter
1/ There's a concept known as financial compounding, but most people don't know about intellectual compounding. Buffett and Munger employed this to great effect and to accumulate mental models such that they can make large decisions quickly. Intuition is simply reading a lot.
2/ This allows people to convert typically slow thinking and bad fast thinking (bad intuition) into good intuition. In academic literature this is known as Type 1 and Type 2 thinking. Most people don't accumulate enough of knowledge the tree.
3/ One of the common patterns for a self made billionaires is their ability to self study, self reason and accumulate a set of their own mental model. Intellectual capital compounds at a hidden rate and most people use tangible badges and net worth as measures.
4/ Intellectual capital is filling out the decision tree and is a forward looking view and net worth is backward looking. Just like how the wrong way to value tech companies with network effects is revenue but instead by their retention rate and network effects.
5/ Most people value themselves on their individual badges, which is what society labels for you. But most of what is predictive in life, is how you make decisions. Being effective and investing your time in the right area at the right time is a skill, not purely luck.
6/ Allowing readings to fill your mind takes advantage of your diffuse/focused mode of thinking and type 1 and type 2 decision making. Meaning you can focus and use your creative brain (diffuse mode) to wander and make associations. This is the key toward STEM education.
7/ More and more, just like the last 20 years was focused on physical athletes, the next 20 years would be focused on mental atheletes. These ways of thinking and compounding, Buffett, Munger, and polymaths have already used to a large degree and have been confirmed by academia.
8/ As the world get faster and faster with AR/VR, AI, crypto. The ability to invest in your own intellectual capital is a crucial prerequisite to maintaining and succeeding in this world and also for your children.
9/ While politicians say it's education that's important, it's only partially true, it's the ability to assimilate knowledge trees and compound knowledge that leads to satisfaction, mental stimulation, and long term wealth.
10/ What politicians are doing now is simply aiming backwards, but how can you scale this to everyone? It turns out that charter school have been doing a grand experiment.
11/ Taking children from disadvantaged backgrounds and making them fit for college. This has worked and three of the results are the following.
12/ "Growth mindset" not "Fixed mindset"
"Motivation mindset" not "Fixed mindset"
"Student directed AND teacher directed education and projects"
13/ In turns out statistically those three items are the most predictive. What are they? I'm glad you asked.
14/ It turns out that if you just tell students that their mind is like a "muscle" and spend just 10 minutes explaining that concept they will improve their grades dramatically.
15/ It turns out this concept is for a person's mind and for each skill set. People can have verbal "fixed" mindsets, humor "fixed" mindsets, math "fixed" mindsets. Almost everything. So, you have to consciously unlearn this and apply it consciously even if you know it.
16/ Why is this? It turns out people are criticized by society and labeled. So even if you have a "growth" mindset for physical items, you don't have it for mental items. This applies not only for students but also for adults. You always hear "That's not me." It's a label.
17/ There's another concept called "motivational mindset" which teaches the person "what good looks like" which simply teaches the kid to follow "go do the extra problems" "go to office hours" "do more problems" Follow the process of the "motivated student" and it will work.
18/ It turns out these two concepts turn someone that's socio economically disadvantaged similar to the education status of someone who grew up upper middle class. This is not a panacea as a lot of people have so much stressors in their lives that they can't study.
19/ The last concept is student self directed project plus teacher lectures is the best. This surprised me, but conceptually, it gives the student agency and motivation. Most students have been so battered down by the system that they can't do this, but that's another story.
20/ These concepts have to be mind beliefs. Just like in Dune how they cite "fear is the mindkiller" These concepts have to be constantly applied to adults and children as they opposite tends to be pervasive and insidious.
21/ These are mindsets and as for strategies. People need to take concepts from Learning how to Learn by @barbaraoakley and @sejnowski and Art of Learning from Josh Waitzkin. They are are a manual for your brain.
22/ You thought just because you own a brain you knew how to operate it right? Why do you think the drop out rates for STEM is so high. Most people attribute it to pipeline or professor, but perhaps it's because people don't know how to learn difficult subjects.
23/ @LHTL_MOOC takes you from beginner to intermediate, and art of learning takes you from expert to being world class. Then you have Cal Newport's material, and those three resources are simply the best that I know of to hack your own brain
24/ Do you know anymore? Would love to know more resources and techniques.
25/ In conclusion, as the world become more and more technical and complex, most people don't have the mindset nor tactical skills. In short, people have to re-learn the manual to their own brain. Just because you have a computer, it doesn't mean you know everything about it.
this is a link to school that have tried this:…

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More from @zaoyang

Jun 16, 2022
1/3ac highly leveraged out of the 2018 bear market, did well, and truly believed their own "supercycle memes" right into an inflationary bear market. Everyone else that understand inflation and bear markets dumped on the market causing luna/terra/celsius and now 3ac. More to come
2/ inflation bear market + 4 year cycles + tokens that are highly hypothecated causes tons of explicit and hidden leverage in the system. One player getting taken out cascades further and further. This is likely not going to end til late this year or early next year.
3/ One of the things about defi is that it added a lot more leverage in the system. wrapped btc and others for the chosen platforms L1, lets the tokens leverage to ridiculous heights that are way more than the L1 is worth, leverage up, leverage down.
Read 8 tweets
May 20, 2022
Spy 500 officially in a bear market now. Selling will accelerate. CTA hedge funds ETFs. Average inflationary draw down 38% maximum 75%. Average time to recovery to at the highs 9 years. Poll below on nov was the top enjoy shorting the highest PS and PE ratio tech companies. ImageImageImageImage
Short snowflake, crowdstrike, Shopify, apple, BTC. Just like we had ridiculous things like Rivian trading at 100B, can have also shoot to the downside. All the PE ratios that you see for typical lows for cloud companies are not backtested for the 1970s.
If you’re reading forecasts that things can’t go down more then they’re back testing for 2018, 2015. Last time this happened was 1970s, read through Goldman’s research.
Read 21 tweets
Aug 9, 2021
1/ People in the bay area are confused by #miamitechweek. The miami tech experiment was suppose to have died down by now but they don't understand that the bay areas is unbundling from physical location including:

* Expertise
* Co-workers
* Friends
* Interest network

2/ Cities are transitioning by decoupling from physical locations and having many of the benefits on the cloud including

* Unbundling of expertise to location
* Unbundling of workers to location
* Unbundling of friend network to location
* Unbundling of interest to location
3/ Industry towns are based on a multi sided marketplace. Expertise, workers, friends, and common interest for new explorations. This is mostly mapped to a physical social graph that someone can tap into.
Read 23 tweets
Mar 30, 2021
I'm moving to Miami from the bay area.

Five things make this possible:
* Zoom as clearing house for investments
* Housing policies in the Miami-Texas region
* Community with culture
* Startup incubators backed by seasoned operators
* Ambitious local talent
2/ The dynamics of investing has changed. SV used to be the local clearing house where everyone has to go to SV for 2-3 weeks to raise their rounds and even to stay to build relationships for investors.
3/ What ends up happening in practice is that people end up moving to the bay area. However, the net migration of companies has stopped. YC batches went from 80% in the bay area to now 5% in the bay area throughout the pandemic. I've been investing in YC comp pre and post.
Read 23 tweets
Dec 31, 2020
1. Alibaba/Amazon is search oriented and keyword oriented vs picture/video/stories oriented. Ali Express was beaten country by country except Russia by Wish due to this difference in UX. This is powered by a technical engine that's a better version of google adsense.
2/ They launched branded goods which now gets refurbished goods from within the U.S./Europe. This is similar to TJ Max, Ross Dress for Less, Outlet stores. Their selection will only expand over time. Wish will eat this category more and more.
3/ They are running one of the largest buy now pay later in the Europe/U.S. and will likely launch its own fintech products. This is focused on the unbanked markets. Wish can launch same thing as Square and Paypal because they serve different markets.
Read 14 tweets
Nov 1, 2019
1/ Bitcoin has now captured the imagination as digital gold, but what happens when it becomes 1 trillion or 6 trillion dollars? What happens to the security and the electricity costs since 70% of the hash power is concentrated in low electricity cost places, like China/Iceland.
2/ In Nakamoto consensus, out of 100 nodes, there needs to be a minimum of 51 nodes that are bad actors to reverse the transaction history of Bitcoin. Also, there is a little known attack called a partitioning attack.
3/ A partitioning attack is an attack where state actors collude to seal off the internet so that geographically isolated nodes are only gossiping among themselves. Anything that’s geographically centralized is exposed to these attacks as it scales to trillions of dollars.
Read 20 tweets

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