Wrestling with Ideas

A good idea is not enough. Bringing a thought to reality is a complex coordination problem that requires time, resources, and connection. I have wrestled long and hard with my inner idealist and pragmatist. Learning which battles to pick. Learning the art of silence. Learning when good intent actually escalates conflict. Learning when there is no need or value in defending myself or my beliefs. And when there is. I find it interesting that in stories of the old sages, the wise old hermits that get consulted seldom do more than ask ambiguous questions. As if those who know the most are those who see the humour in it all. In my utopia, my understanding of the world is not forced on others. I am an anarchist in that way. My ideal relationships are peer to peer. But I am not submissive, and am resistant to those who wish to dominate without consent. A dance between protecting my good ideas, and letting them go enough for them to influence reality.

 

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