8: Notes from a Commonplace

3..Notes from the Greats

Ohio Senator JD Vance on the shortcomings of achievement:

"I had immersed myself in the logic of the meritocracy and found it deeply unsatisfying. And I began to wonder: were all these worldly markers of success actually making me a better person? I had traded virtue for achievement and found the latter wanting. But the woman I wanted to marry cared little whether I obtained a Supreme Court clerkship. She just wanted me to be a good person."

Investor and entrepreneur Naval Ravikant on hard work’s role in building wealth:

"It’s not really about hard work. You can work in a restaurant eighty hours a week, and you’re not going to get rich. Getting rich is about knowing what to do, who to do it with, and when to do it. It is much more about understanding than purely hard work. Yes, hard work matters, and you can’t skimp on it. But it has to be directed in the right way."

Inventor Henry Ford on which mistakes matter:

"The only real mistake is the one from which we learn nothing."

2..Notes to Know

Luxury Beliefs: "Luxury beliefs" is a concept introduced by Rob Henderson, a doctoral candidate in psychology at the University of Cambridge. It refers to ideas and opinions that confer status on the upper class while often inflicting costs on the lower classes.

These beliefs serve as a form of conspicuous consumption in the realm of ideas, similar to how luxury goods function in the material world.

Henderson argues that as material goods have become more accessible, elites have shifted to signaling their status through beliefs and attitudes. Examples include downplaying the importance of marriage, promoting open borders, or advocating for policies that sound noble but have negative consequences for low income groups.

The concept suggests that adopting these beliefs allows upper-class individuals to signal their education, elevated class, and supposed moral superiority, while the practical consequences of these ideas often affect lower-class individuals more directly. Similar to luxury goods, the more costly the belief the more status it confers on its promoter.

Untruth of Fragility: One of Jonathan Haidt’s “3 Great Untruths” from his book “The Coddling of the American Mind.”

Haidt, a professor and psychologist, explains how too many people are led to believe that “whatever doesn’t kill you makes you weaker.” This perversion of the old adage “whatever doesn’t kill you makes you stronger” is a symptom of a culture that over prioritizes safety.

Haidt suggests more people should embrace physical and mental challenges. It is in these challenges that we grow stronger.

1..Note From Me: On Asymmetrical Bets

In venture capital investing, the general model is to make investments with "asymmetrical return potential." At its core, the concept of asymmetrical returns is about making bets or decisions where the potential upside significantly outweighs the downside risk. In other words, it's about finding opportunities where you have limited downside but potentially unlimited upside.

VCs apply this principle by investing in companies at their very early stages. If the company fails (as most do), the investors lose only a small initial investment. However, each investment has the potential to yield an Uber or Facebook-sized return.

Life, when viewed as a sequence of decisions, provides opportunities for the application of asymmetrical bets. Each decision is essentially a bet on its outcome.

To leverage this concept, start thinking of decisions as risk-reward calculations. Consider both the potential downside and upside. Look for opportunities where the potential gain far outweighs the potential loss.

Ask yourself: Where might there be an opportunity to make a small bet that could have a large positive outcome?

Often, asymmetrical bets are present in self-improvement activities. Improving your health, acquiring new skills, picking up a hobby, pursuing creative endeavors, and entrepreneurship all provide excellent opportunities to make asymmetrical bets.

By applying the principle of asymmetrical returns to various aspects of life, you can maximize your chances of significant positive outcomes while minimizing risk.

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.