Monday, September 12, 2022
Gentle Unpacking
Tuesday, March 15, 2022
Accepting Randomness
Wednesday, March 09, 2022
Hiding your Needle
Friday, August 20, 2021
Life is Complicated
Thursday, April 08, 2021
Framing your Decisions
I believe we all experience the world as a controlled hallucination. We take in information based on what we already know. Gradually building trust based on an elaborate story we build up to explain the responses we experience to the decisions we make. You can’t live without a story. Your story acts as the framework for what you want to do, and how you want to make decisions. You need to internalise and embody the disciplines you want to use to frame your decisions. The way a lot of people discipline themselves with money decisions is running out of money. When there is no money there, you can’t spend it. Which means most of us live hand-to-mouth. You cannot build space for autonomy and consent within your decision making that way. You will get stuck in a monthly cycle, or a weekly cycle, or whenever the money comes in. You get income dependence, where you get a job, and get paid, and that determines your standard of living. And there is no space. No extra. If you want something, you save specifically for it, buy it, and go back to zero. Never actually freeing yourself from the constraint of having nothing in the bank. That becomes your framework.
Thursday, April 01, 2021
Glitch
Even if we could make purely rational decisions, what would that even mean? Not everything can be counted and quantified. This is the challenge. With pure rationality, there are rules of logic. Rules like prioritising and comparing. Creating relative preference. If I prefer apples to oranges, and I prefer oranges to pears, then I can infer that I prefer apples to pears. If you remember your preferences and they are consistent. Our memory is glitchy. Which is useful. It is useful to be able to forget things. To change the story. It is one of the ways we cope. If something is not working for us, we get to rewrite the story. If we could never forget and things were purely factual, that would be a debilitating glitch. So somehow we need to establish how well we want to understand ourselves. Do you want to do the work? It is hard to be honest. It is emotionally challenging. You need to build up the necessary skills to self-reflect. It is not simply allowing harsh internal voices. You need to feel that you are on your own team, in the same way as when we work with other people.
Friday, March 19, 2021
Part of your Story
You have to choose a path. We are exposed to a number of lotteries that determine our starting point. That is something we have no choice but to accept. It is a strength. It doesn't feel like it because it feels like there should be a level of fairness. We should all have the same options. I like the idea of alternate histories. We keep having to make choices. That is part of autonomy. The reality is that every choice you make, opens a new set of options, and closes down a different set of options.
Whenever things go badly, one of the philosophies I have tried to develop to do something awesome that would not have been possible if that thing had not gone wrong. To change the story around that event. The idea of “Fortunate Misfortune” (See 10 Moral Paradoxes by Saul Smilansky). It is not that you start looking on the horrible moment with affection, but you stop wishing it away. It becomes a part of a positive arch in your story.
Friday, February 26, 2021
New World. Old Vines.
“If South Africa wins, we all win”. Ian Naude was responding to a question about whether he supports young, up-and-coming, winemakers or sees them as competition. Wealth is made in containers around supply and demand, and the temptation is to forget that we exist in bigger containers. Wine containers. South African containers. Global containers. In “The Art of Learning”, Josh Waitzkin talks of a martial arts teacher of his who was very open with what he knew. His belief was that if other people were obsessing over what he was doing, that was to his advantage anyway. The great insight of Adam Smith was that win-win beats the gunboat approach of mercantilism every time. All containers provide is shape and form to our problem solving. They make for clear asks and clear offers. They are a communication tool, but they don’t have to define or separate us, or our learning. Secrecy is lose-lose. Grow the bigger container and we all win.
Tuesday, February 23, 2021
Which Path?
We don’t choose our mother tongue or the country we are born in. Similarly, our relationship with money is path dependent. Money is not a thing. It is a communication tool. A catalyst for things that matter. That is why the conversation about wealth creation, or any creation (even things that don’t make money often need money), starts with understanding someone's relationship with money. A good financial adviser’s key job is understanding you and how you think. You can only take control over your next step on the path if you know where the starting point is. Know where you are. Know what you pay attention to. Know the container you are in. The barriers to entry to what you want to do. The barriers to exit from what you are doing. Your capacity for things not going exactly as you expect. Money is like words and numbers. It can either help you tell your story, or control your story.
Monday, January 18, 2021
Holding the Knife
Price is not value. Salary is not worth. The best way to see this is to speak to someone who has moved from a big company to a small company. Especially if that small company is a start-up. The layer of story-telling that gets added onto a business to do salary negotiations is simply that. A story. The magic of markets are they let us quantify things that cannot be quantified. If you have someone who wants something (because they think it is worth more than the price) and someone who has that thing to offer (because they can supply it at sufficiently less than the price). Price is just an agreement. In most businesses price determines the size of the pie. Then story gets added and sliced by the person with the knife. If the company has a stable cash flow that allows the illusion of sticky wages (annual increases in only one direction), then people can live in the false security of salaries that reward seniority and perceived merit. Key performance indicators are a tool for those who hold the knife. They are not a market price.







