How a few high-impact successes drive up overall average outcomes in investing, business, and creative projects. How to harness positive skewness using a barbell approach. Learn when to mitigate risks and when to embrace them. Topics covered include: What is positive skewness and how does it manifest in investing, business and creative endeavors How power laws and the 80/20 rule work Why we shouldn't beat ourselves up if we aren't incredibly successful When should we reduce … [Read more...]
408: Is Success Due to Hard Work, Talent, or Luck?
How to survive in a world where luck and randomness play a pivotal role. Topics covered include: What are power laws What are the narrative fallacy and hindsight bias What are examples of domains where randomness has contributed to success What are ways to distinguish investing skill from luck How sixth-century philosopher Boethius had an accurate view of chance What are ways we can benefit from good luck while protecting ourselves from bad luck Show … [Read more...]
323: The Economy Is Not A Machine
How the drive for efficiency leads to greater wealth concentration and threatens capitalism. What can be done about it? Topics covered include: Why income growth has slowed for the middle classWhy the economy now follows a power-law distribution rather than a normal distribution, leading to skewed outcomesWhy the economy is a complex adaptive system rather than a machineHow the type of job you have and the company you work for affects your incomeWhy greater efficiency increases the … [Read more...]
