When building, take pride in carrying the quality all the way through.
Would you be proud for your work to be seen from every angle and perspective?
If not, keep working.
Razors are rules that simplify decisions.
THREAD: 20+ powerful razors (to help you cut through life’s noise):
When building, take pride in carrying the quality all the way through.
Would you be proud for your work to be seen from every angle and perspective?
If not, keep working.
Complexity and jargon are often used to mask a lack of true understanding.
If you can’t explain it to a 5-year-old, you don’t really understand it.
If someone uses a lot of complexity and jargon to explain something to you, they probably don’t understand it.
“I never allow myself to have an opinion on anything that I don’t know the other side’s argument better than they do.” - Charlie Munger
Opinions aren’t free. You have to work to earn the right to have them.
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 https://t.co/ve5kiowvN7
The @JeffBezos Regret Minimization Framework is a simple yet powerful mental model for making important decisions and unlocking growth in your career, startup, business, relationships, or life.
— Sahil Bloom (@SahilBloom) February 24, 2021
A short thread on how it works and how it can change your life... pic.twitter.com/krtr2CarxW
“The most important thing to do if you find yourself in a hole is to stop digging." - Warren Buffett
When things aren’t working, change course and try something different.
When you find yourself at the bottom of a hole, stop digging and climb out of it.
If someone proposes a crazy idea, ask:
(1) Are they a domain expert?
(2) Do I know them to be reasonable?
If yes on (1) and (2), you should take the idea seriously, as it may be an asymmetric bet on the future.
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.
Be ruthless in identifying your circle of competence (and its boundaries).
When faced with a big decision, ask yourself whether you are qualified to handle it given your circle.
If yes, proceed. If no, outsource it to someone who is. https://t.co/H5zwF6Pkqt
Circle of Competence 101
— Sahil Bloom (@SahilBloom) January 6, 2021
Warren Buffett and Charlie Munger often reference the importance of knowing the boundaries of your circle of competence.
But what is a Circle of Competence and how does it work?
Here's Circle of Competence 101! pic.twitter.com/KCLwyczlx8
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 person by regularly observing their habitual characteristics.
“You don't have to swing at everything - you can wait for your pitch." - Warren Buffett
Life doesn’t reward you for the number of swings you take.
Slow down and focus on identifying the juiciest pitch.
When it comes, swing hard and don’t miss it.
The simplest explanation is often the best one.
Simple assumptions > complex assumptions.
Simple is beautiful. https://t.co/X8ZWwVKVlj
Occam's Razor 101
— Sahil Bloom (@SahilBloom) November 12, 2020
With a wave of complexity and unknowns smashing into the financial and political worlds, the elegant simplicity of Occam's Razor is primed for a revival.
But what is Occam's Razor and how does it work?
Here's Occam's Razor 101!
\U0001f447\U0001f447\U0001f447 pic.twitter.com/cuGzQ1YOLP
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” - Warren Buffett
Remember that quote and act accordingly.
Your character is your fate.
Never attribute to malice that which can be adequately explained by stupidity.
In assessing someone's actions, we should not assume negative intent if there is a viable alternative explanation, such as different beliefs, incompetence, or ignorance. https://t.co/myAAODdncq
Hanlon's Razor is a simple mental model for cutting through negative noise and unlocking growth in your career, startup, business, or relationships.
— Sahil Bloom (@SahilBloom) March 17, 2021
A short thread on what it is and how it can change your life... pic.twitter.com/7przXYiCKZ
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.
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.
Never attribute to malice that which can be adequately explained by self-interest.
In assessing someone's actions, we should not assume negative intent if there is a viable alternative explanation that they are acting on rooted self-interest.
What can be asserted without evidence can also be dismissed without evidence.
The burden of proof regarding a claim lies with the one who makes the claim. If unmet, no argument is required to dismiss it.
“Extraordinary claims require extraordinary evidence.”
The more crazy and outrageous the claim, the more crazy and outrageous the body of evidence must be in order to prove it.
“Read what you love until you love to read.”
When deciding what to read, just read whatever grabs you.
Avoid the trap of only reading “impressive” or “smart” books that bore you to death.
Never establish vanity metrics (e.g. # of books) as goals.
When faced with a task, ask: “Is this urgent? Is this important?”
An "urgent" task is one that requires immediate attention. An "important" task is one that promotes or furthers your long-term goals.
Place it on a 2x2 matrix and act accordingly. https://t.co/UNFqkFw69B
The Eisenhower Decision Matrix is a powerful tool for prioritizing your time and unlocking growth in your career, startup, business, relationships, or life.
— Sahil Bloom (@SahilBloom) February 16, 2021
A thread on how it works and how it can change your life... pic.twitter.com/tSihZV9oyx
“The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.” - Steve Jobs
It’s Monday morning. Did you wake up with energy or with dread?
Your answer will tell you if you’re settling.
When deciding on a new job, choose the one that will challenge you the most (intellectually, physically, or emotionally).
Challenge and discomfort forces growth.
(P.S. Check out the job board below for challenging new roles!)
https://t.co/UhW76VmjrH
If you enjoyed this, follow me @SahilBloom for more and join the 20,000+ others by subscribing to my newsletter, where I regularly share high-signal, curiosity inducing content. https://t.co/qMB8i60ney
More from Sahil Bloom
Short Squeeze 101
If you follow financial markets (or if you watch Billions), you've heard the phrase "short squeeze" used quite frequently.
But what is a "short squeeze" and how does it work?
Here's Short Squeeze 101!
👇👇👇
1/ First, the basics.
The "short" in "short squeeze" refers to the concept of short selling.
The basics are covered in my thread below.
https://t.co/xecJYNCxMs
TL;DR - short selling is a way of betting against a stock - i.e. betting that its price will decline.
2/ "Short interest" is a measure of how heavily an asset is shorted by the market.
It is the total number of shares that have been sold short (borrowed and sold), but have not yet been covered (bought and returned).
It is usually measured as a % of the # of shares outstanding.
3/ A "short squeeze" occurs when a heavily-shorted asset experiences a rapid upward price movement.
When this happens, short sellers may be forced to close their short positions (i.e. buy the stock and return it to the broker), further accelerating the upward price movement.
4/ Let's look at a simple example to show this in action.
We will use Tesla, one of the most heavily-shorted stocks in the world.
Imagine the stock price is $1,000 per share. This seems crazy. Ricky Rational decides to short the stock at this level.
If you follow financial markets (or if you watch Billions), you've heard the phrase "short squeeze" used quite frequently.
But what is a "short squeeze" and how does it work?
Here's Short Squeeze 101!
👇👇👇
1/ First, the basics.
The "short" in "short squeeze" refers to the concept of short selling.
The basics are covered in my thread below.
https://t.co/xecJYNCxMs
TL;DR - short selling is a way of betting against a stock - i.e. betting that its price will decline.
1/ Short Selling 101
— Sahil Bloom (@SahilBloom) July 6, 2020
With the markets continuing to rally, there has been more talk of \u201cshorting\u201d or \u201cshort selling\u201d stocks.
But what does that mean and how does it work?
Here\u2019s a quick educational primer: Short Selling 101 pic.twitter.com/JTrJmuY7fI
2/ "Short interest" is a measure of how heavily an asset is shorted by the market.
It is the total number of shares that have been sold short (borrowed and sold), but have not yet been covered (bought and returned).
It is usually measured as a % of the # of shares outstanding.
3/ A "short squeeze" occurs when a heavily-shorted asset experiences a rapid upward price movement.
When this happens, short sellers may be forced to close their short positions (i.e. buy the stock and return it to the broker), further accelerating the upward price movement.
4/ Let's look at a simple example to show this in action.
We will use Tesla, one of the most heavily-shorted stocks in the world.
Imagine the stock price is $1,000 per share. This seems crazy. Ricky Rational decides to short the stock at this level.
From a young age, we are taught to view the world as black and white.
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.
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.
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.
More from Personal growth
Six threads better than a college degree:
1.
2.
3.
4.
1.
How to Get Rich (without getting lucky):
— Naval (@naval) May 31, 2018
2.
First principles thinking is a powerful mental model for driving non-linear outcomes. It also requires a willingness to ask difficult, uncomfortable questions.
— Sahil Bloom (@SahilBloom) March 14, 2021
Here are a few to help you get started: pic.twitter.com/KyuAr7IUf7
3.
Let\u2019s talk about High Agency: an attitude I\u2019ve seen in every successful product manager & leader I\u2019ve known.
— Shreyas Doshi (@shreyas) June 27, 2020
Some ppl are born/raised with High Agency. It can also be developed later in life.
High agency is a prerequisite for making a profound impact in one's life & work
1/20 pic.twitter.com/8vPSbj4lKF
4.
If you want to improve your writing, start by becoming a better note-taker.
— David Perell (@david_perell) March 29, 2020
Here are 10 ways to do that:
1. Save only the best notes: Don't hoard information. Save your top 5-10% of ideas only. That way, you can trust that everything in your note-taking system is high-quality.
