Yen Liow is a managing partner in Aravt Global LLC
find your why; your reason for being
If you know your WHY? You will find your HOW ?
Mantra: Decode, simplify, execute, refine.
If you do not train and refine your learning style, you cannot see great investments if they were right in front of you.
Pattern Recognition: How do you systematically break down the vast universe of investment opportunities to a finite set of ideas that you have a change of generating sustainably superior returns ?
Focus: How do you maximize your return on time ?
Judgement and Insight is not a function of time, it is a function of repetitions. Function of exposure to decision points and datasets to condition your pattern recognition and refine your judgement. This is a controllable variable.
Pattern recognition = exposure to statistically significant data sets to form causal relationships
Judgement = exposure to decision points and feedback loops to refine within a mental model or framework of thought.
Fully embrace struggle as your partner on your journey to excellence.
Pressure is a privilege - it only comes to those who earn it.
-- Billie Jean King
As you ascend to higher level of responsibility, easy decisions should be handed to others. Hence forth, the struggle will only increase as you become more privileged in the decisions you are empowered to make. It becomes lot more fun, when you understand struggle is your journey and you don't want to be fight it.
Difference between Struggle and Suffering is context
Context is everything; it is the WHY ?
If you are struggling, it means you are learning and growing.
This is by far the most important force in the universe and you have to get left side of the chart as early as you possibly can. This applies to literally everything in life whether its capital, ability, contacts, insights, whatever the function that needs to be compounded. This is the most important path of your learning curve.
Thing to remember is, you have to control your 'i' and lengthen your 'n'. There is no exception to this rule.
the first rule of compounding is to never interrupt it unnecessarily
-- Charlie Munger
Q: Take a guess looking at the chart, where does mastery live in this chart ?
These are step function increases in ability. These are controlled and uncontrolled leaps. Uncontrolled leaps are where you have the aha! moment. Your brain has piece of insight that solves complex problem literally you are rewiring your brain. You are different, once you solved that problem or have that insight than you were before. However those insights, those abilities starts fading over time.
Master live on the plateaus(straight lines), there is no endpoint. Mastery and whole pursuit of mastery is the journey there is no endpoint. The point is Masters dont get bored they recognise the plateaus is part of the journey.
Mastery Step functions are tiny subparts of the exponential curve(compound chart).
Charlie Munger compounded at 20% for 14 years with a volume of 33%. He suffered two >30% losses back to back in the final three years of his partnership. I am not sure another fund in the modern era could survive this.
To play this game, you have to become a highly functional, committed, learning machine.
It starts with knowing
Recommended book to read : The 4-Hour Body, The 4-Hour Work Week by Tim Ferriss
Its a 3-Step process,
Step 1: A cogent mental model of perfect execution
Step 2 : Practice it a lot(push to the edge)
Step 3: Feedback loop/refinement
This is not about speed: Purposeful is faster path to mastery than sprinting.
Recommended book to read : Wooden on Leadership, John Wooden
Forgetting your mistakes is a terrible error, if you are trying to improve your cognition
-- Charlie Munger
In the long run, painful losses may prove much m ore valuable than wins
-- Joshua Waitzkin
Emotional vs. Intellectual -- The Gandalf Moment
If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes.
-- Albert Einstein
If you think deeply about the question, you will get the answer. Your brain is incredibly sophisticated problem solving device.
For many events, roughtly 80% of the effects come from 20% of the causes
Therefore 20% of the effort produces 80% of the results but the last 20% of the results consumes 80% of the effort.
To tap the full power of your brain -- your subconscious mind. do,
Key questions to ponder,
2x your ability on a key node = 10x your long-term NPV(net present value)
This is the single most imporant area of our R&D
The earlier in your career and the more accountable you are for your decisions, the better. To learn rapidly, you have to fully own your own outcomes. You eventually become the production of your decisions or those that are made for you...
Recommended book to read : DECISIVE - HOW TO MAKE BETTER CHOICES IN LIFE AND WORK, Chip Heath & Dan Heath
To connect dots, create dots! MIND MAPS You cannot solve what you cannot remember
Recommended book to read : Memory Book, Harry Lorayne & Jerry Lucas
Breakdown the complex problem into segments and try to solve the segments and reassemble it.
Take up one idea. Make that one idea your life — think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success.
-- Swami Vivekananda