11: Notes from a Commonplace

3..Notes from the Greats 🏆

Investor Paul Graham on finding superlinear returns:

"Superlinear returns imply inequality. The steeper the return curve, the greater the variation in outcomes.

In fact, the correlation between superlinear returns and inequality is so strong that it yields another heuristic for finding work of this type: look for fields where a few big winners outperform everyone else.."

Emile Durkheim, French sociologist, on never having enough :

"The more one has, the more one wants, since satisfactions received only stimulate instead of filling needs"

Peter Thiel on what it takes:

"What I think people like Zuckerburg or Musk or Bezos at Amazon have in common is that they're relentless. They don't stop. Every day, they start over, do more, get better at it."

2..Notes to Know 🧠

Natural and Positive Laws: “Positive” laws are laws that are “posited” or created by humans, like rules for the road and rules for using words. “Natural laws” are discovered rather than invented, like the law of gravity or the laws of geometry.

Natural laws do not vary from culture to culture, time to time, or individual to individual. But positive laws do; therefore, they are also called “conventional” laws. Natural laws are foundational for natural rights.

Cognitive Dissonance: The psychological phenomenon that occurs when a person holds contradictory beliefs, ideas, or values, or when their actions conflict with their beliefs. This internal inconsistency creates mental discomfort, forcing individuals to seek ways to reduce the dissonance. While this discomfort can occasionally lead to positive behavior changes that alleviate the contradictory pressure, more often, people rationalize their behavior or deflect from the issue.

Consider a heavy drinker who is aware of the harm they're causing themselves. Instead of addressing the problem directly, they might downplay its severity or make relative comparisons: "I know it's bad, but I don't drink as much as Steve."

These rationalizations allow the individual to maintain their behavior while reducing the uncomfortable feelings associated with their conflicting knowledge and actions.

1..Note From Me 📓 On Jargon vs Lingo

When I was an undergrad trying to break into the walled garden of venture capital and private equity, I spoke with many people in an effort to network. I immediately noticed that all of these people were speaking in a language I didn't know— using words and phrases to describe the work they were doing and how they were doing it.

I knew if I wanted a job, I had to talk the talk.

What wasn't clear to me at the time was that these words and phrases could be split into two categories: Jargon vs. Lingo.

Jargon phrases are made-up phrases and metaphors that don't mean much, but attempt to signal "in-group" status or cover up a lack of true understanding. When a person doesn't truly understand a concept, they will rely on jargon to get a point across and cover up inadequacies.

Lingo, on the other hand, consists of words used by insiders to communicate with other insiders more efficiently. Every industry and even friend groups have their own lingo. It's like a verbal shorthand, communicating lots of information quickly and without explanation. Try talking to a bond trader about what they do—even with a finance background and an understanding of bonds, it will sound like a foreign language: "Repo," "time to boom," "fatty," "juice."

The key difference between jargon and lingo lies in their utility and authenticity. While jargon often obfuscates meaning, lingo clarifies and expedites communication among insiders.

When learning a new concept (like a programming language) or changing careers, prioritize lingo over jargon. Lingo facilitates effective communication and demonstrates real understanding, while jargon only provides a superficial appearance of knowledge.

The goal is to comprehend and contribute, not just mimic the language. Mastering lingo gives you insight into how insiders think and operate, providing actual value in the given area. Learn the lingo and ignore the jargon.

Thanks for reading. If you enjoyed this newsletter, consider sharing it. If this newsletter was forwarded to you, consider subscribing.

Copy this link to share: https://www.readjohnstreet.com/subscribe

A commonplace book is a personal collection of quotes, observations, ideas, and other bits of information that an individual finds interesting or inspiring. It is one of the most tried and true methods for learning & compiling information. Famously, Leonardo da Vinci, Marcus Aurelius, and Thomas Jefferson all carried a commonplace book.

This newsletter shares the notes from my own commonplace book and will add highlights to yours.