Hey friend!
I just uploaded a new video on Mohnish Pabrai and Naval Ravikant Hack / Mental Model to have a better life and make better decisions overall.
Here is all the written content I produced…
✍️ Quotes
"If you cannot decide, the answer is No." - Naval Ravikant
👨 People
Mohnish Pabrai
Mohnish Pabrai is a very well-known investor and follower of the investment style of Warren Buffet and Charlie Munger. He has been a successful investor since he started in 1995 and currently manages around 600-700m$ in his fund "Pabrai Fund" with a focus on global public equity. He also started the non-profit foundation "Dakshana" in 2008 to coach smart kids (in a distressed economic situation) to pass the university entrance exams for IT and Medicine in India.
Naval Ravikant
Naval is an entrepreneur and angel investor, a co-author of Venture Hacks, and a co-maintainer of AngelList.
📝 Notes
Mohnish Pabrai
- Principle: Hang out with people better than you, and you will get better.
* There is a "gravitational pull"
- How can you know if someone is better than you?
* Warren Buffet and Charlie Munger have a powerful Hack to apply this principle...
** Only pick the obvious instances (people that are undoubtedly better than you).
"If you cannot decide, the answer is No." - Naval Ravikant
*** Benefits:
**** You don't need to be a good human judger, you just pick from the few people that seems obvious to you that they are great.
**** If you only pick the obvious instances, the risk of picking someone worse than you is very low.
*** The process discriminates massively, but is rational to do it...
**** There are so many people (and good people) in the world. And we only need to choose well on a an infinite small percentage of that population.
(In the next part, Naval exposes a more generalized Hack to Buffet's Hack, and how we are wired to instinctively not follow this model)
Naval Ravikant
(Picking Nuggets note: Naval follows this same model, but in a more general way towards any important decision...)
When making an important decision...
- If you cannot decide, the answer is No.
(Picking Nuggets note: A more generalized Hack to Buffet's Hack)
* Reason: Modern Society is full of options.
** Instances:
*** The internet connects us to almost everyone in the world.
*** There is a huge number of careers available.
* Beware we are biased...
**We are not biologically prepare to act properly from current reality.
**** In our evolution, we couldn't afford to just effortlessly disregard a given choice.
- Only say yes if you are pretty certain (although, you never will never be 100% sure...)
(Picking Nuggets note: As Mohnish argued, pick the obvious cases! We can't afford the risk of choosing wrong).
📝 Reflections
Lesson --> When considering an important decision and there are many options, mistakes of commission matter. Whereas mistakes of omission are irrelevant.
It was also inspiring to me when I watched Mohnish's display of humility and humor, when he argued that one day Charlie and his friends will find out that they made an error of judgement when they included Mohnish in their peer group. I think this is definitely a core trait of any high quality person (not taking yourself so seriously and being humble).
Link to the video:
https://www.youtube.com/watch?v=IsSZHVlSgDw&ab_channel=PickingNuggets
👇Content I've been consuming lately (and recommend it)
Peter Thiel: You Are Not a Lottery Ticket | Interactive 2013 | SXSW — www.youtube.com Discourse and action in our society are increasingly dominated by the idea that the world cannot be known. But to what degree issuccess in this world dominat...
Your Dark Side and Control Over Your Life | Robert Greene | #237 — www.youtube.com This episode was recorded on November 11, 2021.This episode focuses on human nature and the principles surrounding strategy, power, and seduction with Robert...
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Until next time,
Julio xx