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Tag Archives: Philosophy

The Power of Your Subconscious Mind

We think that we're in control. We believe that our conscious mind directs our thoughts and somehow controls our subconscious mind. We're wrong.

In Richard Restak's The Brain Has a Mind of Its Own:

At the moment of decision we all feel we are acting freely, selecting at will from an infinity of choices. Yet research suggests this sense of freedom may be merely an illusory by-product of the way the human brain operates.

Restak gives the example of reading this essay. You scan the title and a few sentences here and there and eventually make a decision to stop reading or read on. You might then go back to the beginning and start reading, or you might start reading wherever it was in the article when you decided to stop skimming.

“The internal sequence,” Restak writes, “was always thought to be: 1. you make a conscious decision to read; 2. that decision triggers your brain into action; 3. your brain then signals the hands to stop turning pages, focuses the eyes on the paragraph, and so on.”

But this isn't what happens at all. “An inexplicable but plainly measurable burst of activity occurs in your brain prior to your conscious desire to act.”

The subconscious mind controls a lot of what we think and the connections we make. And, of course, our thoughts influence what we do.

In The Thinker's Toolkit, Morgan Jones recalls the story found in David Kahn's The Codebreakers.

Breaking codes in World War II was perhaps the largest big data project ever to happen in the world up until that point. The conscious mind could only do so much. One German cryptanalyst recalled, “You must concentrate almost in a nervous trace when working on a code. It is not often done by conscious effort. The solution often seems to crop up from the subconscious.”

Believing that the conscious mind calls the shots prevents us from understanding ourselves, others, and how to make better decisions to name but a few things.

In Plain Talk, Ken Iverson offers some insight on how to turn these thoughts into practical utility.

“Every manager,” he writes “should be something of a psychologist—what makes people tick, what they want, what they need. And much of what people want and need resides in the subconscious. The job of a manager is to help the people accomplish extraordinary things. And that means shaping a work environment that stimulates people to explore their own potential.”

We place too much emphasis on the conscious mind and not enough on the subconscious one.

Unless you manage your environment, it will manage you. The old question ‘would you rather be the poorest in a wealthy neighborhood or the richest in a poor neighborhood?' is based on how the environment controls our subconscious and our subconscious controls our happiness.

Focusing is an Art, Not a Science

Productivity is all the rage. People want to get more done in less time. Productivity systems abound: Getting Things Done, Pomodoro, the Seinfeld thing, etc. There’s certainly something to be said for each of them.

But have you thought about something a little simpler and more basic: How to focus? Like, really how to focus your mind on one hard, long project until it’s done?

Productivity systems are great in that they keep you accountable for getting lots of task-oriented work completed. But they don’t answer the larger question, which is: What do you do that creates value in your career? And more than that, what are you doing that’s going to have a cumulative effect, that’s really going to matter years down the road?

I see these two concepts as intertwined and incredibly important, and ignored by overly task-oriented productivity methods.

The first is figuring out where you’re going to create a massive amount of value in your career, The second is figuring out how you’re going to carve out the time and energy to focus deeply on the first.

The thing is, that type of work — whether it’s building a new product, writing a book, learning a hard subject, building a keynote speech, writing a complicated piece of software, whatever — doesn’t happen by saying “I’ll get to it”, and then allocating 15 minutes here or there in between checking your email and going to meetings.

It happens by stringing together sessions of deep, focused effort. Hours at a time, over and over. The intense kind where you sort of lose yourself and wake up later with a lot of awesome work done.

Learning how to do that kind of work, I think, is something of an art.

I say “art” for a reason. I see a lot of people out there promoting their “science-based” system for getting a lot done. Let me tell you something: The word science is being used to fool you and trick you. To make you salivate, Pavlov-style. “Science” is not some monolith that tells you how to create really meaningful work. There’s no “science” of success. There’s no “science” of productivity. That’s pure charlatanism.

Doing great work is an art. A group of researchers can’t answer the complex question of how to live and work correctly; the real world is too varied. We don’t live in a controlled experiment and we’re not lab rats, or worse, college students in psych labs.

Some scientific research papers can certainly give you hints on how the mind works, sure. They might even tell you a few things about information retention and task-based memory. I can see how that might be useful.

But that’s a long way away from creating a career you care about, where you regularly do focused, meaningful work that feels satisfying. Your life is not the one measured in the labs: You’re not trying to memorize flashcards or strings of numbers; what I’m talking about cannot be boiled down to rigorous science. (And anyone who reads Farnam Street knows the deep respect I have for real science.)

No — it’s art! Or more properly, artisanship. And the essence of being an artisan is that it’s deeply personal: It has to speak to you. You must be willing to put your soul into the game. This means everyone will go about the Art of Focus in their own way. It takes experimentation, dedication, and an understanding that no one can do it for you.

I even called a course I put together The Art of Focus, for this very reason. I don’t claim to have all the answers, or to “scientifically” solve your problems or fix your brain, like you’re a mouse in a lab. I just wanted to give people all of the tips and tricks I knew about doing focused, meaningful work, so they could build a system themselves.

Because the truth of the matter is that, however you go about it, you do need to build your capacity for hard, focused work. That is vital in an age of complexity, where we need to carve out a niche. Most of us aren’t making widgets anymore, and much of that work is being replaced by machines anyways.

And if you’ll let me be controversial for a second, I think that’s a good thing for humanity. Humans aren’t meant to live on a factory assembly line (or the white-collar equivalent – spreadsheets and Powerpoint). We’re meant to lose ourselves in valuable and satisfying work that smacks of originality and humanity.

I know a lot of finance people who want to switch into some related craftsmanship, or writing, or software-building, but not the other way around. Do you know any woodworkers who want to switch into finance? Do you know any writers who want to switch into corporate accounting? Me neither.

But in order to build an awesome career doing hard but satisfying long-term work, you need to build your ability to focus for hours at a time. You need to learn hard skills. You need to let go of multitasking, distraction, and the temptation to be “busy.”

I built the Art of Focus to get people started on that path, but I recommend doing it any way you feel comfortable. With apologies to Phil Knight, just do it.

Friedrich Nietzsche on Making Something Worthwhile of Ourselves

Friedrich Nietzsche (1844-1900) explored many subjects, perhaps the most important was himself.

A member of our learning community directed me to the passage below, written by Richard Schacht in the introduction to Nietzsche: Human, All Too Human: A Book for Free Spirits.

​If we are to make something worthwhile of ourselves, we have to take a good hard look at ourselves. And this, for Nietzsche, means many things. It means looking at ourselves in the light of everything we can learn about the world and ourselves from the natural sciences — most emphatically including evolutionary biology, physiology and even medical science. It also means looking at ourselves in the light of everything we can learn about human life from history, from the social sciences, from the study of arts, religions, literatures, mores and other features of various cultures. It further means attending to human conduct on different levels of human interaction, to the relation between what people say and seem to think about themselves and what they do, to their reactions in different sorts of situations, and to everything about them that affords clues to what makes them tick. All of this, and more, is what Nietzsche is up to in Human, All Too Human. He is at once developing and employing the various perspectival techniques that seem to him to be relevant to the understanding of what we have come to be and what we have it in us to become. This involves gathering materials for a reinterpretation and reassessment of human life, making tentative efforts along those lines and then trying them out on other human phenomena both to put them to the test and to see what further light can be shed by doing so.

Nietzsche realized that mental models were the key to not only understanding the world but understanding ourselves. Understanding how the world works is the key making more effective decisions and gaining insights. However, its through the journey of discovery of these ideas, that we learn about ourselves. Most of us want to skip the work, so we skim the surface of not only knowledge but ourselves.

Philosopher Kahlil Gibran on Why The Best Thing To Give is Yourself

In 1923 the Lebanese-American artist, poet, and philosopher Kahlil Gibran (1883–1931) published his masterpiece, The Prophet, which endures as a timeless classic meditation on living. While Kahlil's thoughts on love capture his brilliance, his book offered more wisdom.

In our annual letter we highlight that the most valuable thing you give Farnam Street, is your time. This moves beyond something physical and into something that is part of you. Gibran captures this well when he writes:

You give but little when you give of your possessions.
It is when you give of yourself that you truly give.

As if speaking in our time — to our fear or boredom, our inability to want something without instant gratification, and our ability to never be satisfied with what we have, Gibran writes

And what is fear of need but need itself.
Is not dread of thirst when your well is full, the thirst that is unquenchable?

On whether we should wait to be asked before we give, the answer is clear. We should give first. More than that, however, we need to be deserving. Something Charlie Munger hit on when he said “The best way to get success is to deserve success.”

It is well to give when asked, but it is better to give unasked, through understanding;
And to the open-handed the search for one who shall receive is joy greater than giving.
[…]
You often say, “I would give, but only to the deserving.”
The trees in your orchard say not so, nor the flocks in your pasture.
They give that they may live, for to withhold is to perish.
[…]
See first that you yourself deserve to be a giver, and an instrument of giving.
For in truth it is life that gives unto life—while you, who deem yourself a giver, are but a witness.

The Prophet is a must read in its entirety. Complement with Gibran's thoughts on love.

Naval Ravikant on Reading, Happiness, Systems for Decision Making, Habits, Honesty and More

Naval Ravikant (@naval) is the CEO and co-founder of AngelList. He’s invested in more than 100 companies, including Uber, Twitter, Yammer, and many others.

Don’t worry, we’re not going to talk about early stage investing. Naval’s an incredibly deep thinker who challenges the status quo on so many things.

In this wide ranging interview we talk about reading, habits, decision-making, mental models, and life.

Just a heads up, this is the longest podcast I’ve ever done. While it felt like only thirty minutes, our conversation lasted over two hours!

If you’re like me, you’re going to take a lot of notes so grab a pen and paper. I left some whitespace on the transcript below in case you want to take notes in the margin.

Enjoy this amazing conversation.

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Listen

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Books mentioned

Transcript

Normally only members of our learning community have access to transcripts, however, we wanted to make this one open to everyone. Here's the complete transcript of the interview with Naval.

Charlie Munger on Getting Rich, Wisdom, Focus, Fake Knowledge and More

“In the chronicles of American financial history,” writes David Clark in Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth,” Charlie Munger will be seen as the proverbial enigma wrapped in a paradox— he is both a mystery and a contradiction at the same time.”

On one hand, Munger received an elite education and it shows: He went to Cal Tech to train as a meteorologist for the Second World War and then attended Harvard Law School and eventually opened his own law firm. That part of his success makes sense.

Yet here's a man who never took a single course in economics, business, marketing, finance, psychology or accounting, and managed to become one of the greatest, most admired, and most honorable businessmen of our age, noted by essentially all observers for the originality of his thoughts, especially about business and human behavior. You don't learn that in law school, at Harvard or anywhere else.

Bill Gates said of him: “He is truly the broadest thinker I have ever encountered.” His business partner Warren Buffett put it another way: “He comes equipped for rationality…I would say that to try and typecast Charlie in terms of any other human that I can think of, no one would fit. He's got his own mold.”

How does such an extreme result happen? How is such an original and unduly capable mind formed? In the case of Munger, it's clearly a combination of unusual genetics and an unusual approach to learning and life.

While we can't have his genetics, we can try to steal his approach to rationality. There's almost no limit to the amount one could learn from studying the Munger mind, so let's at least get started by running down some of his best ideas.

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Wisdom and Circle of Competence

“Knowing what you don’t know is more useful than being brilliant.”
“Acknowledging what you don’t know is the dawning of wisdom.”

Identify your circle of competence and use your knowledge, when possible, to stay away from things you don't understand. There are no points for difficulty at work or in life.  Avoiding stupidity is easier than seeking brilliance.

Of course this relates to another of Munger's sayings, “People are trying to be smart—all I am trying to do is not to be idiotic, but it’s harder than most people think.”

And this reminds me of perhaps my favorite Mungerism of all time, the very quote that sits right beside my desk:

“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”

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Divergence

“Mimicking the herd, invites regression to the mean.”

Here's a simple axiom to live by: If you do what everyone else does, you're going to get the same result that everyone else gets. This means, taking out luck (good or bad), if you act average, you're going to be average. If you want to move away from average, you must diverge. You must be different. And if you want to outperform, you must be different and correct. As Munger would say, “How could it be otherwise?”

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Know When to Fold Em

“Life, in part, is like a poker game, wherein you have to learn to quit sometimes when holding a much-loved hand— you must learn to handle mistakes and new facts that change the odds.”

Mistakes are an opportunity to grow. How we handle adversity is up to us. This is how we become personally antifragile.

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False Models

Echoing Einstein, who said that “Not everything that counts can be counted, and not everything that can be counted counts,” Munger said about his and Buffett's shift to acquiring high quality businesses for Berkshire Hathaway:

“Once we’d gotten over the hurdle of recognizing that a thing could be a bargain based on quantitative measures that would have horrified Graham, we started thinking about better businesses.”

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Being Lazy

“Sit on your ass. You’re paying less to brokers, you’re listening to less nonsense, and if it works, the tax system gives you an extra one, two, or three percentage points per annum.”

Time is the friend to a good business and the enemy of the poor business. It's also the friend of knowledge and the enemy of the new and novel. As Seneca said “Time discovers truth.”

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Investing is a Pari-mutual System

You’re looking for a mispriced gamble,” says Munger. “That’s what investing is. And you have to know enough to know whether the gamble is mispriced. That’s value investing.”  At another time he added: “You should remember that good ideas are rare— when the odds are greatly in your favor, bet heavily.

May the odds forever be in your favor. Actually, learning properly is one way you can tilt the odds in your favor.

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Focus

When asked about his success, Munger says, “I succeeded because I have a long attention span.”

Long attention spans allow for a deep understanding of subjects. When combined with deliberate practice focus allows you to increase your skills and get out of your rut. The Art of Focus is a divergent and correct strategy that can help you identify where the leverage points are and apply your effort toward them.

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Fake Knowledge

“Smart people aren’t exempt from professional disasters from overconfidence.”

We're so used to outsourcing our thinking to others that we've forgotten what it's like to really understand something from all perspectives. We've forgotten just how much work that takes. The path of least resistance, however, is just a click away. Fake knowledge, which comes from reading headlines and skimming the news seems harmless, but it's not because it makes us overconfident. It's better to remember a simple trick: anything you're getting easily through google or twitter is likely to be widely known and should not be given undue weight.

However, Munger adds, “If people weren’t wrong so often, we wouldn’t be so rich.

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Sit Quietly

Echoing Pascal, who said some version of ‘All of humanity's problems stem from man's inability to sit quietly in a room alone,' Munger adds an investing twist:  “It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait.”

The ability to be alone with your thoughts, and turn ideas over and over, without the do something syndrome affects so many of us. A perfectly reasonable deviation is to hold your ground and await more information.

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Deal With Reality

“I think that one should recognize reality even when one doesn’t like it; indeed, especially when one doesn’t like it.”

Munger clearly learned from Joseph Tussman's wisdom. This means facing harsh truths that you have forced yourself to ignore. It means meeting the world on the worlds terms, not how you wish it would be. If this causes temporary pain, so be it. “Your pain,” writes Kahil Gibran in The Prophet, “is the breaking of the shell that encloses your understanding.”

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There is No Free Lunch

We like quick solutions that don't require a lot of effort. We're drawn to the modern equivalent of an old hustler selling an all curing tonic. Only the world does not work that way. Munger expands:

“There isn’t a single formula. You need to know a lot about business and human nature and the numbers…It is unreasonable to expect that there is a magic system that will do it for you.”

Acquiring knowledge is hard work. It's reading and adding to your knowledge so it compounds. It's going deep and developing fluency, something Darwin knew well.

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Maximization/Minimization

In business we often find that the winning system goes almost ridiculously far in maximizing and or minimizing one or a few variables— like the discount warehouses of Costco.

When everything is a priority nothing is a priority. Attempting to maximize competing variables is a recipe for disaster. Picking one variable, and relentlessly focusing on it, which is an effective strategy, diverges from the norm. It's hard to compete with businesses who have correctly identified the right variables to maximize or minimize. When you focus on one variable, you'll increase the odds you're quick and nimble — and can respond to changes in the terrain.

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Map and Terrain

At Berkshire there has never been a master plan. Anyone who wanted to do it, we fired because it takes on a life of its own and doesn’t cover new reality. We want people taking into account new information.”

Plans are maps that we become attached to. Once we've told everyone there is a plan and what that plan is, especially multi-year plans, we're psychologically more likely to hold to it because coming out and changing it would be admitting we're wrong. This creates a scenario where we're staking the odds against us in changing when things change. Detailed 5-year plans (that will clearly be wrong) are as disastrous as overly-general five year plans (which can never be wrong). Scrap it, isolate the key variables that you need to maximize and minimize, and follow the agile path blazed by Henry Singleton and followed by Buffett and Munger.

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The Keys to Good Government

There are three keys: honesty, effectiveness, and efficiency.

Munger says:

“In a democracy, everyone takes turns. But if you really want a lot of wisdom, it’s better to concentrate decisions and process in one person. It’s no accident that Singapore has a much better record, given where it started, than the United States. There, power was concentrated in an enormously talented person, Lee Kuan Yew, who was the Warren Buffett of Singapore.”

Lee Kuan Yew put it this way himself: “With few exceptions, democracy has not brought good government to new developing countries. . . . What Asians value may not necessarily be what Americans or Europeans value. Westerners value the freedoms and liberties of the individual. As an Asian of Chinese cultural background, my values are for a government which is honest, effective, and efficient.”

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One Step At a Time

“Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Slug it out one inch at a time, day by day. At the end of the day— if you live long enough— most people get what they deserve.”

An incremental approach to life that reminds one of the nature of compounding. There will always be some going faster than you but we can learn from the Darwinian guide to overachieving your natural IQ. In order for this approach to be effective you need a long axis of time as well as continuous incremental progress.

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Getting Rich

“The desire to get rich fast is pretty dangerous.” 

Getting rich is a function of being happy with what you have, spending less than you make, and time.

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Mental Models

“Know the big ideas in the big disciplines and use them routinely— all of them, not just a few.”

Mental Models are the big ideas from multiple disciplines. While most people agree these are worth knowing, they often think they can identify which models will add the most value, and in so doing they miss something important. There is a reason that the “know nothing” index fund almost always beats the investors who think they “know.” Understanding this idea in greater detail, will change a lot of things including how you read. Acquiring the big ideas — without selectivity — is the way to mimic a know nothing index fund.

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Know-it-alls

“I try to get rid of people who always confidently answer questions about which they don’t have any real knowledge.”

Few things have made as much of a difference in my life as systemically eliminating (and when not possible, reducing the importance of) people who think they know the answer to everything.

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Stoic Resolve

“There’s no way that you can live an adequate life without many mistakes. In fact, one trick in life is to get so you can handle mistakes. Failure to handle psychological denial is a common way for people to go broke.”

While we all make mistakes, it's how we respond to failure that defines us.

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Thinking

“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.”

“It’s bad to have an opinion you’re proud of if you can’t state the arguments for the other side better than your opponents. This is a great mental discipline.”

Thinking is a lot of work. “My first thought,” William Deresiewicz said in one of my favorite speeches, “is never my best thought. My first thought is always someone else’s; it’s always what I’ve already heard about the subject, always the conventional wisdom.”

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Choose Your Associates Wisely

“Oh, it’s just so useful dealing with people you can trust and getting all the others the hell out of your life. It ought to be taught as a catechism. . . . But wise people want to avoid other people who are just total rat poison, and there are a lot of them.”

No comment needed there.

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Complement Tao of Charlie Munger with this excellent Peter Bevelin Interview.