Frameworks provide clarity in complex situations.
Here are 20 useful frameworks (on startups, investing, writing, & life):
To learn anything:
Step 1: Identify a topic.
Step 2: Try to explain it to a 5-year-old.
Step 3: Study to fill in knowledge gaps.
Step 4: Organize, convey, and review.
True genius is the ability to simplify, not complicate.
Simple is beautiful.
"Study the undeniable arrows of progress." - @wolfejosh
The future is extremely difficult to predict—but there are clues.
Look at the trend line of progress and where it's pointing—directionally, not precisely.
Invest (or build) accordingly.
Place all of your tasks on a 2x2 matrix of urgency and importance.
(1) Important & Urgent
(2) Important & Not Urgent
(3) Not Important & Urgent
(4) Not Important & Not Urgent
Prioritize, delegate, or delete accordingly.
The goal is to minimize the number of regrets in life.
When faced with a difficult decision:
(1) Project yourself into the future.
(2) Look back on the decision.
(3) Ask "Will I regret not doing this?"
(4) Take action.
High expectations lead to high performance (and vice versa).
If you consistently see people as their potential, they will achieve more.
When you're occasionally let down, consider it a tax you pay for all the benefit from those you believed in.
If forced to choose between two options of seemingly equal merit, choose the one that doesn’t look the part.
The one who doesn’t look the part has had to overcome much more to achieve its status than the one who fit in perfectly.
Centralized Friend Group: one cluster of friends with shared backgrounds and beliefs.
Decentralized Friend Groups: small clusters of friends unconnected to each other.
Opting for decentralized friend groups is the key to independent thought.
Truly successful people rarely feel the need to boast about their success.
If someone regularly boasts about their income, wealth, or success, it’s fair to assume the reality is a fraction of what they claim.
Modern work culture is a remnant of the Industrial Age. It encourages long periods of steady, monotonous work unsuited for the Information Age.
To do truly great, creative work, you have to be a lion.
Sprint when inspired. Rest. Repeat.
Jerry Seinfeld would hang a huge calendar on the wall and use a red marker to put an X over every day that he completed his daily writing.
It wasn't about the writing being good, it was about the consistency.
Applies to more than just writing...
New innovation may take root by providing a simple solution to a segment of a market that is under or over-served by incumbents.
Upstarts provide the exact level of product/service needed and relentlessly drive this wedge to expand.
Skin in the Game means that the key principals participate in both the upside and downside associated with any decisions.
Always look for its presence in any new situation.
Avoid games where those making the rules don't have any skin in the game.
Hamilton Helmer's "7 Powers" is a holy grail of business strategy.
The 7 Powers are the foundation of durable value creation:
(1) Cornered Resources
(3) Network Economies
(4) Scale Economies
(5) Switching Costs
(7) Process Power
Old Way: Learn to Play.
New Way: Play to Learn.
We are living in an unprecedented era—historical boundaries are being broken, enabling anyone to participate.
If you're trying to learn anything new, insert yourself into the game.
It's the only way.
A framework for analyzing the competitive intensity of a given market.
The five forces to consider:
(1) Competitive Rivalry
(2) Supplier Power
(3) Customer Power
(4) Threat of Substitution
(5) Threat of New Entry
Thoughtful consideration = better outcomes.
"What the smartest people do on the weekend is is what everyone else will do during the week in ten years." - @cdixon
Observe the weekend projects of the smartest people in your circles.
Odds are those will become a key part of our future.
If someone proposes a crazy idea, ask:
(1) Are they a domain expert?
(2) Do I know them to be reasonable?
If yes on both (1) and (2), you should take the idea seriously, as it may be an asymmetric bet on the future.
If it looks like a duck, swims like a duck, and quacks like a duck, it’s probably a duck.
You can determine a lot about a company or person by regularly observing its or their habitual characteristics.
If something cannot be settled by experiment or observation, it is not worth debating.
This will save you from wasting a lot of time on pointless arguments.
Jeff Bezos famously said that investing in what might change is risky, but investing in what will stay the same is safe.
The future is hard to predict, so looking for constants you can deliver against may provide a cleaner path to success.
Follow me @SahilBloom for more threads on business, finance, and decision-making.
I plan to expand on many of these frameworks in individual threads in the future…
If you’re a company, DM me for details on how you can have your roles featured. https://t.co/OrTeubzGii
More from Sahil Bloom
But many of life’s most important truths appear contradictory on the surface.
THREAD: 15 powerful paradoxes (on growth, business, careers, and life):
Sprezzatura (“Studied Carelessness”)
You have to put in more effort to make something appear effortless.
Effortless, elegant performances are often the result of a large volume of effortful, gritty practice.
Simple is not simple.
Slow Down to Speed Up
Want to speed up? Try slowing down.
Slowing down gives you the time to be deliberate with your actions.
You can focus, gather energy, and deploy your resources more efficiently.
It allows you to focus on leverage and ROI.
Move slow to move fast.
Learn More to Know Less
The wisdom paradox - the more you learn, the more you are exposed to the immense unknown.
This should be empowering, not frightening.
“The more I learn, the more I realize how much I don't know.” - Albert Einstein
Embrace lifelong learning.
Lifelong learning is a competitive advantage.— Sahil Bloom (@SahilBloom) June 6, 2021
But contrary to what you\u2019ve been told, lifelong learners are built, not born.
THREAD: 20 lifelong learning habits you can start developing today.
Shrink to Grow
Growth is never linear.
In order to grow, sometimes you need to shrink.
Shedding deadweight may feel like a step back, but it is a necessity for long-term growth.
This principle applies to your career, startup, or life.
One step back for two steps forward.
A thread on the underlying mechanics of the $GME saga...
1/ First, for those unfamiliar with the business, GameStop is a videogame and merchandise retailer.
It has >5,000 stores, primarily in malls, across North America, Europe, and Australia.
The business has struggled to modernize, hurting its financial and stock performance.
2/ For a variety of business reasons, a bull (i.e. optimistic) case regarding its future performance has formed.
It really came to the forefront after RC Ventures, an entity managed by Chewy founder @ryancohen, disclosed a large position and assumed three board seats.
3/ @ryancohen summarized his case, stating:
"We are excited to bring our customer-obsessed mindset and technology experience to GameStop and its strategic assets...expanding the ways in which it delights customers and by becoming the ultimate destination for gamers."
4/ At the time of that statement on January 11, $GME stock was trading at about ~$20 per share.
Since then, the stock has surged to ~$200 per share and captured the public imagination.
But how did it happen?
There are two dynamics at play: a short squeeze and a gamma squeeze.
He would go on to found and build the most strategically important company in the world.
Who's up for a story?
1/ Morris Chang was born into a middle-class family on July 10, 1931 in Ningbo, Chekiang, China.
The early years of his life were set against a backdrop of hardship.
Wars and widespread poverty had overwhelmed the country, exposing him to this suffering at a young age.
2/ His father - an official in the local government - encouraged Morris to focus on school.
Fleeing the violence of the ongoing wars, Morris and his mother moved frequently.
His studies became his respite.
In 1948, at the height of the Civil War, they moved to Hong Kong.
3/ In 1949, Morris Chang was accepted to Harvard University.
He moved to America.
After just one year at Harvard, he transferred to The Massachusetts Institute of Technology (MIT) to study engineering.
He graduated in 1953 with a B.S. and M.S. in Mechanical Engineering.
4/ While he had originally intended to continue his studies and get a PhD, he failed his qualifying exam, so was forced to enter the job market.
He took an entry-level job with Sylvania Semiconductor, but quickly realized the company wasn't forward-thinking enough for his style.
Here’s a framework for establishing incentives (that actually create desired outcomes):
Great incentives create great outcomes.
But unfortunately, humans are astonishingly bad at establishing incentives—we consistently invite manipulation and unintended consequences.
This thread shares my framework for a establishing better incentives:
Incentives are anything that drives an individual to act in a specific manner.
Intrinsic incentives are internal—created by self-interest or desire.
Extrinsic incentives are external—created by outside factors (reward, punishment).
Today, we'll focus on extrinsic incentives.
In a very simple model, extrinsic incentives typically involve two key components: the measure and the target.
The measure is the metric that the individual or group will be judged upon.
The target is the level of the measure at which a reward (or punishment) will be initiated.
This simple model of incentives—which will feel familiar to many—often leads to undesirable outcomes and unintended consequences.
Goodhart's Law explains why:
When a measure becomes a target, it ceases to be a good measure.
Prioritize these core principles:
Build a Personal Board of Advisors
The concept of “mentorship” has become too formal.
Asking someone to be your mentor feels like a big commitment.
Instead, build a Personal Board of Advisors.
A diverse group of 5-10 people you can go to for questions, advice, or feedback.
Swallow the Frog for Your Boss
One of the single greatest hacks to getting ahead early in your career:
(1) Observe your boss
(2) Figure out what they hate doing
(3) Learn to do it
(4) Take it off their plate
It's a clear way to add value, put up a win, and build momentum.
Create a Decentralized Growth Tribe
Having a decentralized friend group to grow with is a real competitive advantage.
• Unconnected to other groups
• Different backgrounds
• Range of experience sets
• Novel perspectives
Call it your Growth Tribe. It’s a huge value unlock.
Learn to Sell
To be successful, you either need to learn how to build or you need to learn how to sell.
Most of us aren't technically-gifted—so just learn to sell.
The more you progress in any field, the more of your job becomes sales.
If you can sell, you'll always make it.
More from Learning
Making money is a skill—like playing the drums or piano—that you can get better at over time.
I wouldn’t expect to be able to sit down at a piano for the first time and play a concerto. The same is true for making money.
This is why most first companies fail.
The Ladders of Wealth Creation breaks an insanely complicated topic of building wealth into the component parts and skills to give you a roadmap of what to do first.
Look at this graphic, then we’ll break down each step.
Ladder 1: Time for Money
The first ladder is trading time for money. This is how most people you know earn a living.
It may start with an hourly job working for Starbucks, but then transition into a salaried position working at a company.
The skills for success are simple, but critical:
1. Show up consistently
2. Being reliable
3. Eager to learn
Every job requires those three things.
To climb the ladder to a salaried position you need to specialize in certain skills (design, copywriting, legal, nursing, etc).
1. Think and Grow Rich by Napoleon Hill
- Your thoughts are more powerful than you think
- Your why is powerful
2. Can’t Hurt Me by David Goggins
- You are capable of much more than you think
- Pain is inevitable, suffering is optional
3. The 4 Hour Work Week by Tim Ferris
- It’s possible to work less but earn more
- The goal isn’t necessarily more money
4. Awaken The Giant Within by Tony Robbins
- How you talk to yourself is everything
- Change happens in an instant
CPR is another popular tool. Three lines are plotted on the chart when we plot CPR.
The three lines are: CPR, TC and BC.
Let’s understand the calculation.
You may recall that I explained the calculation of Pivot levels in an earlier thread. CPR stands for Central Pivot Range. It is always a center line of the three lines that gets plotted in the chart.
CPR is a Pivot price. Pivot is average of HLC as explained in the prev thread.
We also discussed about Mid-range of the session. Mid-range is average of High and low price of the session.
The mid-range of the bar is known as BC in the CPR calculation. BC stands for Bottom central pivot.
Pivot level captures the relationship of the closing price to the range of the session.
Pivot price above mid-price = bullish pivot
Pivot price below mid-price = bearish pivot
So, CPR line is Pivot and BC line is Mid-range.
What is the difference between both?
Mid-range is average of High and Low.
Pivot is average of High, Low and Close.
What will make the difference between the two?
1/ Thinking Fast and Slow
• Probably the best book written on human behavior
• You will learn how to be aware of your own bias
• Make better decisions by understanding your blind spots
2/ The Innovator’s Dilemma
• Why big companies miss disruptive innovations
• Big companies demand quantification of market size
• Disruptive markets in their infancy can’t be quantified
3/ Zero to One
• Competition is for losers
• Monopolies are actually good
• Large TAM’s are overrated
4/ How to Win Friends and Influence People
• Business is about people
• You’re selling to people (customers) or hiring people (employees)
• This book helps you get better at both
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Originally built by Chalukyas in 7th century. Devi Banashankari was their family deity. This image of Banashankari Amma was installed by Jagadekamalla I in 630 AD.
Later renovations were done by Marathas.
Once, a demon Durgamasur was troubling the people of this area. Answering the prayers of Devas, Ma Parvati emerged from the yajna fire as Banashankari and killed Durgamasur.
This area has rich forests of coconut, betel nut and other trees.
It is said that during a severe famine, Devi provided vegetables and fruits to the people of this area.
Hence, she is also worshipped here as Shakambhari.
In the annual festival called Banashankari jatre, a Rath yatra takes place and Devi moves around the city in the chariot.
You can't magic away the vast distances involved. Clue: we fly in only 1/192th of our trade compared to the amount that arrives via sea
In 2016, the UK transported 484,000,000 tons of freight by sea, but just 2,511,000 tons by air (192x less than by sea). Therefore absurd to think of simply substituting air freight for sea freight (e.g. if we have to fly in food or medicines because of post-Brexit jams at ports)— Edwin Hayward (@uk_domain_names) October 28, 2018
But even if you invented a teleporter tomorrow, WTO terms are so bad, so stacked against us, that a no-deal Brexit will be a total economic disaster
Here's the truth about Brexit, the "punishment" some people claim the EU wants to inflict on us, the full horrific consequences of no deal, and the dangers lurking behind any deal we reach. Buckle in, it's pretty long. Better to be thorough than to leave anything out. 1/47— Edwin Hayward (@uk_domain_names) October 14, 2018
And while the Brexiteers fantasise, real jobs are being lost, investments are drying up, companies are moving assets to the EU27 or redomiciling. All already happened and happening right now, not in some mythical
Ok, it's high time to look at the REAL effects of Brexit. As the Tories implode & Labour sits on its hands, companies are executing contingency plans, shifting jobs & assets, slashing investments, or redomiciling (accounting exercise). Happening NOW, not in a fantasy future. 1/95— Edwin Hayward (@uk_domain_names) November 14, 2018
Of course, there are many, many myths that Brexiteers perpetuate that are total fiction. You've seen a couple of them already. The thread below busts a whole lot
Unicorn Shredder: Hard Brexit Truths— Edwin Hayward (@uk_domain_names) November 15, 2018
- The major economic harm Brexit is already inflicting on the UK
- Reality of "no deal" & WTO terms
- EU "punishment" narrative
- Endangered industries: automotive & haulage
+ much, much more...
(Each tweet is a self-contained thread.)
I think I've figured it out.
THREAD: The four elements of writing style:
Pardon me while I open a wormhole into your brain and thrust style advice into it.
See, that’s an example of style.
I could have just said: "And now let’s learn about style."
Four elements of style I'll cover:
• Your voice
• Your presentation
• Engaging the senses
• Engaging the imagination
Part 1: Your voice
Ask your friends what it's like to talk with you.
Perhaps they’ll mention your:
• Tone of voice
• Sense of humor
Convey those traits in your writing, and readers will recognize your voice.
In other words, voice is not your choice of words. Voice is your unfiltered self.
1)EMA 8 above EMA 34 and rising
2)Candle close above previous 5 candle high
3) RSI above 60
4) Volume above previous 5 candles
5) ADX above 30
Select Double Moving Average 8 and 34
Under Patterns select Close Above Prev Bars
Qualify the candle close
RSI above 60
Four hours south of Aswan in Lower Nubia, right by the Nile, is a region dotted with temple complexes built more than 3,000 years ago. Some like the temples of Amada, Derr, and Beit el-Wali go as far back as 1500 BC.
A little further south, not far from the border with Sudan, is another complex dedicated to Ramses II, Hathor, and Nefertari in the village of Ipsambul, better known locally as Abu Sunbul and internationally as Abu Simbel. These go back to the 13th century BC.
Djeser-Djeseru, also known as the mortuary temple of Hatshepsut in Upper Egypt also dates to 1400 BC. Over 500 years older is the nearby Mentuhotep II, also a mortuary temple. Both were dedicated to the cult of Amun Ra, besides their respective pharaohs.
Far older is the Ġgantija complex of Malta. Going as far back as 3600 BC, this one comprises of two temples entirely made of stone and enclosed in a stone wall. From the figures therein, it's understood to be a site of some kind of a fertility cult worship.
Dating from the same period are the limestone megaliths of Ħaġar Qim and Mnajdra, both said to have once hosted ritualistic sacrifices as part of the same fertility cult worship as found in the Ġgantija complex. Malta has some of the oldest temple complexes in Europe.