LEARN THE SKILLS OF DECISION-MAKING
The classical virtues are all decision-making heuristics to make one optimize for the long term rather than for the short term. [11]
Self-serving conclusions should have a higher bar.
I do view a lot of my goals over the next few years of unconditioning previous learned responses or habituated responses, so I can make decisions more cleanly in the moment without relying on memory or prepackaged heuristics and judgments. [4]
Almost all biases are time-saving heuristics. For important decisions, discard memory and identity, and focus on the problem.
Radical honesty just means I want to be free. Part of being free means I can say what I think and think what I say. They’re highly congruent and integrated. Theoretical physicist Richard Feynman famously said, “You should never, ever fool anybody, and you are the easiest person to fool.” The moment you tell somebody something dishonest, you’ve lied to yourself. Then you’ll start believing your own lie, which will disconnect you from reality and take you down the wrong road.
I never ask if “I like it” or “I don’t like it.” I think “this is what it is” or “this is what it isn’t.”
— Richard Feynman
It’s really important for me to be honest. I don’t go out of my way volunteering negative or nasty things. I would combine radical honesty with an old rule Warren Buffett has, which is praise specifically, criticize generally. I try to follow this. I don’t always follow it, but I think I follow it enough to have made a difference in my life.
If you have a criticism of someone, then don’t criticize the person—criticize the general approach or criticize the class of activities. If you have to praise somebody, then always try and find the person who is the best example of what you’re praising and praise the person, specifically. Then people’s egos and identities, which we all have, don’t work against you. They work for you. [4]
Any advice on developing capacity for instinctual blunt honesty?
Tell everyone. Start now. It doesn’t have to be blunt. Charisma is the ability to project confidence and love at the same time. It’s almost always possible to be honest and positive. [71]
As an investor and CEO of AngelList, you’re paid to be right when other people are wrong. Do you have a process around how you make decisions?
Yes. Decision-making is everything. In fact, someone who makes decisions right 80 percent of the time instead of 70 percent of the time will be valued and compensated in the market hundreds of times more.
I think people have a hard time understanding a fundamental fact of leverage. If I manage $1 billion and I’m right 10 percent more often than somebody else, my decision-making creates $100 million worth of value on a judgment call. With modern technology and large workforces and capital, our decisions are leveraged more and more.
If you can be more right and more rational, you’re going to get nonlinear returns in your life. I love the blog Farnam Street because it really focuses on helping you be more accurate, an overall better decision-maker. Decision-making is everything. [4]
The more you know, the less you diversify.