Consider the Longevity of the Knowledge You Consume

While most of us focus on consuming information that we won’t care about next month, let alone next year, Buffett focused on knowledge and companies that change very, very slowly or not at all. And because the information he was learning changed slowly he could compound his knowledge over time. And as Schroeder notes, Buffett has been in business for a long time, giving him incredible opportunities to create a cumulative base of knowledge. Expiring information is sexy but it’s not knowle...

 The Insecure Overachiever

Exacerbating this problem, elite professional organizations deliberately set out to identify and recruit “insecure overachievers” — some leading professional organizations explicitly use this terminology, though not in public. Insecure overachievers are exceptionally capable and fiercely ambitious, yet driven by a profound sense of their own inadequacy. This typically stems from childhood, and may result from various factors, such as experience of financial or physical deprivation, or a...

 Entropy in our Everyday Lives: Active Stability

Because things naturally move to disorder over time, we can position ourselves to create stability. There are two types of stability: active and passive. Consider a ship, which, if designed well, should be able to sail through a storm without intervention. This is passive stability. A fighter jet, in contrast, requires active stability. The plane can’t fly for more than a few seconds without having to adjust its wings. This adjustment happens so fast that it’s controlled by software. Ther...

 Seeing Organizations as Biological Systems

There’s a continuing struggle between complexity and robustness in both evolution and human design. A kind of survival imperative, whether in biology, engineering, or business requires that simple, fragile systems become more robust. But the mechanisms to increase robustness will in turn make the system considerably more complex. Furthermore, that additional complexity brings with it its own unanticipated failure modes, which are corrected over time with additional robust mechanisms, which ...

 Gell-Mann Amnesia Effect

Briefly stated, the Gell-Mann Amnesia effect is as follows. You open the newspaper to an article on some subject you know well. In Murray's case, physics. In mine, show business. You read the article and see the journalist has absolutely no understanding of either the facts or the issues. Often, the article is so wrong it actually presents the story backward—reversing cause and effect. I call these the "wet streets cause rain" stories. Paper's full of them. In any case, you read with exasp...

 The Role of the Educator In Regards to the Future

The world is changing -- it is getting both smaller and bigger at the same time. Our world shrinks as technologies now allow us to communicate both synchronously and asynchronously with peers around the world. Conversely, the explosion of information now available to us expands our view of the world. As a result of the ability to communicate globally and the information explosion, education must change. Most educators might not want to change, but the change is coming -- it is a matter of whe...

 Reading Fiction is to Temporarily Believe Nonsense

The weather bureau will tell you what next Tuesday will be like, and the Rand Corporation will tell you what the twenty-first century will be like. I don't recommend that you turn to the writers of fiction for such information. It's none of their business. All they're trying to do is tell you what they're like, and what you're like—what's going on—what the weather is now, today, this moment, the rain, the sunlight, look! Open your eyes; listen, listen. That is what the novelists say. But ...

 Go make that stuff manifesto

Go make that stuff The manifesto is this: Draw the art you want to see, start the business you want to run, play the music you want to hear, write the books you want to read, build the products you want to use - do the work you want to see done.

 If You Do Get a Degree, Double-Major in Something Useful

Well, the value of graduate school really depends on what you are studying and what you expect to get out of graduate school. I encourage young people to engage in the act of dynamic thinking. That means don't just apply the rules that worked in your field 20 years ago. Journalism is a great example. The media has changed dramatically. I run a media company. I'm in media all the time, and the biggest mistake a journalism major can make is to allow 1985 thinking to dictate how they pursue thei...

 The Laffer Curve

The horizontal axis here is level of taxation, and the vertical axis represents the amount of revenue the government takes in from taxpayers. On the left edge of the graph, the tax rate is 0%; in that case, by definition, the government gets no tax revenue. On the right, the tax rate is 100%; whatever income you have, whether from a business you run or a salary you’re paid, goes straight into Uncle Sam’s bag. Which is empty. Because if the government vacuums up every cent of the wage you...