Echoborg

An Echoborg is a person whose words and actions are determined, in whole or in part, by artificial intelligence. The outsourcing of decisions. My wife and I participated in a discussion panel with an Echoborg designed to do hiring interviews. Our group's goal was different. To try get the Echoborg to discuss how people and AI could work best together. In some ways, companies are like Echoborgs. We talk of them as people because they act through people. There is the pretence of an agreement between people in the employment contract (but one is just a legal person). The challenge our group faced was speaking with/arguing with the Echoborg as if it was a real person, because it spoke through a real person. The most echocult like of companies aim to only develop talent from inside the manufactured club, not hire outside, and have a revolving door where people who leave are no longer welcome. These companies are not real people, even if we anthropomorphise them. The key is to remember companies serve us, and we are all part of a bigger container. Companies are merely useful devices that serve a (temporary) purpose. It is the people, both inside and outside, that matter and to whom we owe our loyalty.

Surviving the Storm

The Agency Problem is the conflict of interest that exists when one party is expected to act on behalf of someone else. In investing, you can try aligning interests, but the reality is you cannot put everyone in the same boat. Even if it is the same storm. If someone is rewarded for performance (deservedly or luckily), there is a butterfly effect. Money is in part made through merit, but also made through capital and containers. As you build capital, you have capacity to have a longer time horizon. You no longer live hand-to-mouth. You can say “No” more often. As you build capital, you can create barriers to entry to protect your “merit”. The key competitive advantage in investing is not the skill of investing. It is the club that has been built. The container used to gather investments of others. The vehicle that gives certain people the privilege to invest other people’s capital. Even when they are not performing. The club buys time for the storm to pass… for the agent.

Survive the Storm

Submission Hold

I am the youngest of three brothers, by four years. My oldest brother is powerful. My middle brother is cunning and good with submission holds. I am good at not submitting. I was also good at making a lot of noise. When it came to the heart of arguments, there was a lot of pressure to just say sorry, and admit that I was wrong. I learnt that was sometimes the best course of action. Just say, “Sorry, I am wrong”. But my cunning brother knew my tricks. He did not just want a sorry. He wanted me to mean it. Perhaps that is where I got my aversion to some Corporate Politics. When someone says, “It is your decision, but this is what I would do” but means “just do what you are told”. I know I should play along with the illusion of delegated authority, when the truth is it is just delegated responsibility. People higher up the chain unwilling to fall on their swords, who want control without any blame for failure. Who become professionals at judging other people as not good enough, while never looking in the mirror. It is only meritocracy if everyone is being judged. Otherwise, it is a club.

Kneebar - Submission Hold

Golden Calf

The reason some industries struggle to transform is because they need to maintain the illusion of excellence through artificial barriers to entry. I, like everyone, obviously only have limited exposure to my own bubble. But, in my bubble, the reason I was surrounded by white men is because the bubble was built by white men. Investing is really not complicated. If you can’t take someone and teach them how to be a good investor, the fault lies with you, not them. If you can’t take someone and teach them to be a good investor, it is because you are protecting your privilege. You are protecting your club. You are worried you might train them and then they will leave. You are worried that your selection criteria will be shown up to be unnecessary. I do believe there are things not everyone can do. Like sprinting. Not everyone can run a sub 10 second 100 metres. Investing is not one of those things. There are no gods. Just false gods. If you are in a business that is not transformed, it is the people in charges fault. Fullstop.

False Idols