Mental Model: Inversion

One of the best mental models I know: Inversion.

From Warren Buffet and Charlie Munger to star Quarterback Tom Brady, the secret to success is to simply avoid stupidity.

In the Brady case, here is an example I read in the Farnam Street newsletter. A quote from his coach Bill Belichick:

Skills for the 21st Century

From 2011, but good. The four drivers of change:

  1. Longevity, in terms of the age of the workforce and customers – Retiring Later
  2. Smart machines, to augment and extend human abilities – Workplace Automation
  3. A computational world, as computer networks connect – Internet of Everything
  4. New media, that pervade every aspect of life – Online Privacy
  5. Superstructed organizations, that scale below or beyond what was previously possible – AirBNB
  6. A globally connected world, with a multitude of local cultures and competition from all directions- Geek NationFrom http://jarche.com/2014/07/four-basic-skills-for-2020/

Matched by the 10 core skills:

  1. Sense making –  Ability to determine the deeper meaning or significance of what is being expressed
  2. Social intelligence –  Ability to connect to others in a deep and direct way, to sense and stimulate reactions and desired interactions
  3. Novel and adaptive thinking –  Proficiency at thinking and coming up with solutions and responses beyond that which is rote or rule-based
  4. Cross cultural competency –  Ability to operate in different cultural settings
  5. Computational thinking–  Ability to translate vast amounts of data into abstract concepts and to understand data based reasoning
  6. New Media Literacy – Ability to critically assess and develop content that uses new media forms, and to leverage these media for persuasive communication
  7. Transdisciplinary –  Literacy in and ability to understand concepts across multiple disciplines
  8. Design Mindset –  Ability to represent and develop tasks and work processes for desired outcomes
  9. Cognitive load management –  Ability to discriminate and filter information for importance, and to understand how to maximize cognitive functions
  10. Virtual collaboration – Ability to work productively, drive engagement, and demonstrate presence as a member of a virtual teamFrom http://www.top10onlinecolleges.org/work-skills-2020/

All started with the Institute for the Future document.

Disclaimers Against Reality: Charles Bukowski on Censorship

A wonderful letter on censorship from Charles Bukowski that I found on the Farnam Street Blog. Bukowski had one of his books removed from a library and this was his response to the person warning him about it. The emphases are mine. It was written in 1985:

The thing that I fear discriminating against is humor and truth.

Censorship is the tool of those who have the need to hide actualities from themselves and from others. Their fear is only their inability to face what is real, and I can’t vent any anger against them. I only feel this appalling sadness. Somewhere, in their upbringing, they were shielded against the total facts of our existence. They were only taught to look one way when many ways exist.

I am not dismayed that one of my books has been hunted down and dislodged from the shelves of a local library. In a sense, I am honored that I have written something that has awakened these from their non-ponderous depths. But I am hurt, yes, when somebody else’s book is censored, for that book, usually is a great book and there are few of those, and throughout the ages that type of book has often generated into a classic, and what was once thought shocking and immoral is now required reading at many of our universities.

I am not saying that my book is one of those, but I am saying thatin our time, at this moment when any moment may be the last for many of us, it’s damned galling and impossibly sad that we still have among us the small, bitter people, the witch-hunters and the declaimers against reality. Yet, these too belong with us, they are part of the whole, and if I haven’t written about them, I should, maybe have here, and that’s enough.

may we all get better together,”

Absolutely wonderful.

Michael Mauboussin

Just heard an interview with Michael Mauboussin on The Knowledge Project podcast (a Farnum Street blog production) and he was super interesting.

A few quotes form the podcast. These are paraphrased:

  • “An expert is someone who has a predictive model that works.”
  • “When it comes to decision making, Daniel Kahneman advises us to use the statistical baseline first (system 2) then Overlay your intuition (system 1), not the other way around or you have confirmation bias.”
  • Evaluate your decision making – track your results. The objective is to make quality decisions over time (like Munger and value investing which is more about avoiding loss than making huge gains).
  • Lessons from Colonel Blotto – if you are dominant player you want to keep It as simple as possible – fewest possible battlefields.    Also for weaker then dilute the power Of the powerful opponent.  Create more complexity, more battlefields.
  • Advice for Parents: Instill Growth Mindset (praise for effort not characteristics) , consider opposite viewpoints and learn how to bet ( decision tracking). Teach kids that even though they win a bet, if it was an irrational/reckless bet, they will lose in the long run. Offer them recommendations, not orders. If you are right, they will learn to respect your recommendations.

He recommended these books:

How to compose a successful critical commentary

“In disputes upon moral or scientific points, let your aim be to come at truth, not to conquer your opponent. So you never shall be at a loss in losing the argument, and gaining a new discovery.” –  Arthur Martine,  1866 guide to the art of conversation

In this everyone-is-a-critic culture, Daniel Dennet asks, “Just how charitable are you supposed to be when criticizing the views of an opponent?”

He offers what he calls “the best antidote [for the] tendency to caricature one’s opponent”: a list of rules formulated decades ago by the legendary social psychologist and game theorist Anatol Rapoport, best-known for originating the famous tit-for-tat strategy of game theory. Dennett synthesizes the steps:

  1. You should attempt to re-express your target’s position so clearly, vividly, and fairly that your target says, “Thanks, I wish I’d thought of putting it that way.

  2. You should list any points of agreement (especially if they are not matters of general or widespread agreement).

  3. You should mention anything you have learned from your target.

  4. Only then are you permitted to say so much as a word of rebuttal or criticism.

From the incomparable Brain Pickings

See also the superb:  A Code of Conduct for Effective Rational Discussion

Decision Engineering

Tim Van Gelder, arguably the worlds greatest authority on critical thinking, asks “What is Decision Engineering?”:

 My favorite definition of the engineer is somebody who can’t help but think that there must be a better way to do this. A more comprehensive and workmanlike definition is given by Wikipedia:

“Engineering is the application of scientific, economic, social, and practical knowledge in order to invent, design, build, maintain, research, and improve structures, machines, devices, systems, materials and processes.”

The activities mentioned above seem to fit this very broad concept: we were engaged to help improve or develop systems – in our case, systems for making decisions. It is therefore tempting to describe some of what we do as decision engineering.”

…Decision engineering is applying relevant knowledge to design, build, maintain, and improve systems for making decisions.”

“Relevant knowledge can include knowledge of at least three kinds:

  • Theoretical knowledge from any relevant field of inquiry;
  • Practical knowledge (know-how, or tacit knowledge) of the decision engineer;
  • “Local” knowledge of the particular context and challenges of decision making, contributed by people already in or familiar with the context, such as the decision makers themselves.”

…in order to improve a particular decision system, a decision engineer might use approaches such as:

  • Bringing standard engineering principles and techniques to bear on making decisions
  • Using more structured decision methods, including the application of decision analysis techniques
  • Basing decisions on “big data” and “data science,” such as predictive analytics

…In short, I like this more general definition of decision engineering (in four words or less, building better decision systems) because it seems to get at the essence of what decision engineers do, allowing but not requiring that highly technical, quantitative approaches might be used.”

Source: What is Decision Engineering? | Tim van Gelder

On Bullshit

on-bullshit2

[Update: After I posted this I came across a great study –  “On the reception and detection of pseudo-profound bullshit” [PDF] – freshly published in November 2015. Well worth a read. I also recently came across this old but great post from Scott Berkun “How to Detect Bullshit“]

Because I see so much of this  on Facebook, I wanted to post the classic essay “On Bullshit” by Harry G. Frankfurt.

http://www.stoa.org.uk/topics/bullshit/pdf/on-bullshit.pdf

Here is Wikipedia on the essay:

“On Bullshit (2005), by Harry G. Frankfurt, is a philosophical essay that presents a theory of bullshit that defines the concept and analyzes the applications of bullshit in the contexts of communication. As such, bullshit can be neither true nor false; hence, the bullshitter is someone whose principal aim — when uttering or publishing bullshit — is to impress the listener and the reader with words that communicate an impression that something is being or has been done, words that are neither true nor false, and so obscure the facts of the matter being discussed. In contrast, the liar must know the truth of the matter under discussion, in order to better conceal it from the listener or the reader being deceived with a lie; while the bullshitter’s sole concern is personal advancement and advantage to their own agenda.”

https://en.wikipedia.org/wiki/On_Bullshit

Here are some quotes:

Humbug is not designed primarily to give its audience a false belief about whatever state of affairs may be the topic, but that its primary intention is rather to give its audience a false impression concerning what is going on in the mind of the speaker. Insofar as it is humbug, the creation of this impression is its main purpose and its point.

Consider a Fourth of July orator, who goes on bombastically about “our great and blessed country, whose Founding-Fathers under divine guidance created a new beginning for mankind.” This is surely humbug. …the orator is not lying. He would be lying only if it were his intention to bring about in his audience beliefs which he himself regards as false, concerning such matters as whether our country is great, whether it is blessed, whether the Founders had divine guidance, and whether what they did was in fact to create a new beginning for mankind. But the orator does not really care what his audience thinks about the Founding Fathers, or about the role of the deity in our country’s history, or the like. At least, it is not an interest in what anyone thinks about these matters that motivates his speech. It is clear that what makes Fourth of July oration humbug is not fundamentally that the speaker regards his statements as false. Rather…the orator intends these statements to convey a certain impression of himself. He is not trying to deceive anyone concerning American history. What he cares about is what people think of him.

…Her statement is grounded neither in a belief that it is true nor, as a lie must be, in a belief that it is not true. It is just this lack of connection to a concern with truth –  this indifference to how things really are – that I regard as of the essence of bullshit.

…The characteristic topics of a bull session have to do with very personal and emotion-laden aspects of life for instance, religion, politics, or sex. People are generally reluctant to speak altogether openly about these topics if they expect that they might be taken too seriously. What tends to go on in a bull session is that the participants try out various thoughts and attitudes in order to see how it feels to hear themselves saying such things and in order to discover how others respond, without it being assumed that they are committed to what they say: It is understood by everyone in a bull session that the statements people make do not necessarily reveal what they really believe or how they really feel. The main point is to make possible a high level of candor and an experimental or adventuresome approach to the subjects under discussion. Therefore provision is made for enjoying a certain irresponsibility, so that people will be encouraged to convey what is on their minds without too much anxiety that they will be held to it.

…Each of the contributors to a bull session relies, in other words, upon a general recognition that what he expresses or says is not to be understood as being what he means wholeheartedly or believes unequivocally to be true. The purpose of the conversation is not to communicate beliefs. Accordingly, the usual assumptions about the connection between what people say and what they believe are suspended. The statements made in a bull session differ from bullshit in that there is no pretence that this connection is being sustained. They are like bullshit by virtue of the fact that they are in some degree unconstrained by a concern with truth.

…It is impossible for someone to lie unless he thinks he knows the truth. Producing bullshit requires no such conviction. A person who lies is thereby responding to the truth, and he is to that extent respectful of it. When an honest man speaks, he says only what he believes to be true; and for the liar, it is correspondingly indispensable that he considers his statements to be false. For the bullshitter, however, all these bets are off: he is neither on the side of the true nor on the side of the false. His eye is not on the facts at all, as the eyes of the honest man and of the liar are, except insofar as they may be pertinent to his interest in getting away with what he says. He does not care whether the things he says describe reality correctly. He just picks them out, or makes them up, to suit his purpose.

…Someone who lies and someone who tells the truth are playing on opposite sides, so to speak, in the same game. Each responds to the facts as he understands them, although the response of the one is guided by the authority of the truth, while the response of the other defies that authority and refuses to meet its demands. The bullshitter ignores these demands altogether. He does not reject the authority of the truth, as the liar does, and oppose himself to it. He pays no attention to it at all. By virtue of this, bullshit is a greater enemy of the truth than lies are.

One who is concerned to report or to conceal the facts assumes that there are indeed facts that are in some way both determinate and knowable. His interest in telling the truth or in lying presupposes that there is a difference between getting things wrong and getting them right, and that it is at least occasionally possible to tell the difference. Someone who ceases to believe in the possibility of identifying certain statements as true and others as false can have only two alternatives. The first is to desist both from efforts to tell the truth and from efforts to deceive. This would mean refraining from making any assertion whatever about the facts. The second alternative is to continue making assertions that purport to describe the way things are but that cannot be anything except bullshit.

Why is there so much bullshit? Of course it is impossible to be sure that there is relatively more of it nowadays than at other times. There is more communication of all kinds in our time than ever before, but the proportion that is bullshit may not have increased. Without assuming that the incidence of bullshit is actually greater now, I will mention a few considerations that help to account for the fact that it is currently so great.

Bullshit is unavoidable whenever circumstances require someone to talk without knowing what he is talking about. Thus the production of bullshit is stimulated whenever a person’s obligations or opportunities to speak about some topic are more excessive than his knowledge of the facts that are relevant to that topic. This discrepancy is common in public life, where people are frequently impelled –  whether by their own propensities or by the demands of others – to speak extensively about matters of which they are to some degree ignorant. Closely related instances arise from the widespread conviction that it is the responsibility of a citizen in a democracy to have opinions about everything, or at least everything that pertains to the conduct of his country’s  affairs. The lack of any significant connection between a person’s opinions and his apprehension of reality will be even more severe, needless to say, for someone who believes it his responsibility, as a conscientious moral agent, to evaluate events and conditions in all parts of the world.

The contemporary proliferation of bullshit also has deeper sources, in various forms of scepticism which deny that we can have any reliable access to an objective reality and which therefore reject the possibility of knowing how things truly are. These “anti-realist” doctrines undermine confidence in the value of disinterested efforts to determine what is true and what is false, and even in the intelligibility of the notion of objective inquiry. One response to this loss of confidence has been a retreat from the discipline required by dedication to the ideal of correctness to a quite different sort of discipline, which is imposed by pursuit  of an alternative ideal, sincerity. Rather than seeking primarily to arrive at accurate representations of a common world, the individual turns toward trying to provide honest representations of himself. Convinced that reality has no inherent nature, which he might hope to identify as the truth about things, he devotes himself to being true to his own nature. It is as though he decides that since it makes no sense to try to be true to the facts, he must therefore try instead to be true to himself.

…Facts about ourselves are not peculiarly solid and resistant to skeptical dissolution. Our natures are, indeed, elusively insubstantial – notoriously less stable and less inherent than the natures of other things. And insofar as this is the case, sincerity itself is bullshit.

See also

Wikipedia’s great article on Lies that described the many types of lies.

The BBC Ethic page on Lying

St Augustine on the 8 types of lie

 

Rise of the Expert Generalist

Enjoyed this profile of Charlie Munger on Medium, especially the description of the Expert Generalist, a rival to the 10,000 hour specialist:

The Rise Of The Expert-Generalist

The rival argument to the 10,000 hour rule is the expert-generalist approach. Orit Gadiesh, chairman of Bain & Co, who coined the term, describes the expert-generalist as:

“Someone who has the ability and curiosity to master and collect expertise in many different disciplines, industries, skills, capabilities, countries, and topics., etc. He or she can then, without necessarily even realizing it, but often by design:

  1. Draw on that palette of diverse knowledge to recognize patterns and connect the dots across multiple areas.
  2. Drill deep to focus and perfect the thinking.”

The concept is commonly represented by this model of the “T-shaped individual”:

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Three great books on Moral Philosophy and Ethics

These three books go brilliantly together. Here is the order I read them in. The images link to Amazon.com kindle editions.

The_Righteous_Mind__Why_Good_People_Are_Divided_by_Politics_and_Religion_-_Kindle_edition_by_Jonathan_Haidt__Politics___Social_Sciences_Kindle_eBooks___Amazon_com_
The Righteous Mind by Jonathan Haidt

Amazon_com__Moral_Tribes__Emotion__Reason__and_the_Gap_Between_Us_and_Them__9781594202605___Joshua_Greene__Books
Moral Tribes by Joshua Greene

The_Quest_for_a_Moral_Compass__A_Global_History_of_Ethics__Kenan_Malik__9781612194035__Amazon_com__Books
The Quest for a Moral Compass by Kenan Malik