ecw.txt 6.1 KB

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  1. December 2014If the world were static, we could have monotonically increasing
  2. confidence in our beliefs. The more (and more varied) experience
  3. a belief survived, the less likely it would be false. Most people
  4. implicitly believe something like this about their opinions. And
  5. they're justified in doing so with opinions about things that don't
  6. change much, like human nature. But you can't trust your opinions
  7. in the same way about things that change, which could include
  8. practically everything else.When experts are wrong, it's often because they're experts on an
  9. earlier version of the world.Is it possible to avoid that? Can you protect yourself against
  10. obsolete beliefs? To some extent, yes. I spent almost a decade
  11. investing in early stage startups, and curiously enough protecting
  12. yourself against obsolete beliefs is exactly what you have to do
  13. to succeed as a startup investor. Most really good startup ideas
  14. look like bad ideas at first, and many of those look bad specifically
  15. because some change in the world just switched them from bad to
  16. good. I spent a lot of time learning to recognize such ideas, and
  17. the techniques I used may be applicable to ideas in general.The first step is to have an explicit belief in change. People who
  18. fall victim to a monotonically increasing confidence in their
  19. opinions are implicitly concluding the world is static. If you
  20. consciously remind yourself it isn't, you start to look for change.Where should one look for it? Beyond the moderately useful
  21. generalization that human nature doesn't change much, the unfortunate
  22. fact is that change is hard to predict. This is largely a tautology
  23. but worth remembering all the same: change that matters usually
  24. comes from an unforeseen quarter.So I don't even try to predict it. When I get asked in interviews
  25. to predict the future, I always have to struggle to come up with
  26. something plausible-sounding on the fly, like a student who hasn't
  27. prepared for an exam.
  28. [1]
  29. But it's not out of laziness that I haven't
  30. prepared. It seems to me that beliefs about the future are so
  31. rarely correct that they usually aren't worth the extra rigidity
  32. they impose, and that the best strategy is simply to be aggressively
  33. open-minded. Instead of trying to point yourself in the right
  34. direction, admit you have no idea what the right direction is, and
  35. try instead to be super sensitive to the winds of change.It's ok to have working hypotheses, even though they may constrain
  36. you a bit, because they also motivate you. It's exciting to chase
  37. things and exciting to try to guess answers. But you have to be
  38. disciplined about not letting your hypotheses harden into anything
  39. more.
  40. [2]I believe this passive m.o. works not just for evaluating new ideas
  41. but also for having them. The way to come up with new ideas is not
  42. to try explicitly to, but to try to solve problems and simply not
  43. discount weird hunches you have in the process.The winds of change originate in the unconscious minds of domain
  44. experts. If you're sufficiently expert in a field, any weird idea
  45. or apparently irrelevant question that occurs to you is ipso facto
  46. worth exploring.
  47. [3]
  48. Within Y Combinator, when an idea is described
  49. as crazy, it's a compliment—in fact, on average probably a
  50. higher compliment than when an idea is described as good.Startup investors have extraordinary incentives for correcting
  51. obsolete beliefs. If they can realize before other investors that
  52. some apparently unpromising startup isn't, they can make a huge
  53. amount of money. But the incentives are more than just financial.
  54. Investors' opinions are explicitly tested: startups come to them
  55. and they have to say yes or no, and then, fairly quickly, they learn
  56. whether they guessed right. The investors who say no to a Google
  57. (and there were several) will remember it for the rest of their
  58. lives.Anyone who must in some sense bet on ideas rather than merely
  59. commenting on them has similar incentives. Which means anyone who
  60. wants such incentives can have them, by turning their comments into
  61. bets: if you write about a topic in some fairly durable and public
  62. form, you'll find you worry much more about getting things right
  63. than most people would in a casual conversation.
  64. [4]Another trick I've found to protect myself against obsolete beliefs
  65. is to focus initially on people rather than ideas. Though the nature
  66. of future discoveries is hard to predict, I've found I can predict
  67. quite well what sort of people will make them. Good new ideas come
  68. from earnest, energetic, independent-minded people.Betting on people over ideas saved me countless times as an investor.
  69. We thought Airbnb was a bad idea, for example. But we could tell
  70. the founders were earnest, energetic, and independent-minded.
  71. (Indeed, almost pathologically so.) So we suspended disbelief and
  72. funded them.This too seems a technique that should be generally applicable.
  73. Surround yourself with the sort of people new ideas come from. If
  74. you want to notice quickly when your beliefs become obsolete, you
  75. can't do better than to be friends with the people whose discoveries
  76. will make them so.It's hard enough already not to become the prisoner of your own
  77. expertise, but it will only get harder, because change is accelerating.
  78. That's not a recent trend; change has been accelerating since the
  79. paleolithic era. Ideas beget ideas. I don't expect that to change.
  80. But I could be wrong.
  81. Notes[1]
  82. My usual trick is to talk about aspects of the present that
  83. most people haven't noticed yet.[2]
  84. Especially if they become well enough known that people start
  85. to identify them with you. You have to be extra skeptical about
  86. things you want to believe, and once a hypothesis starts to be
  87. identified with you, it will almost certainly start to be in that
  88. category.[3]
  89. In practice "sufficiently expert" doesn't require one to be
  90. recognized as an expert—which is a trailing indicator in any
  91. case. In many fields a year of focused work plus caring a lot would
  92. be enough.[4]
  93. Though they are public and persist indefinitely, comments on
  94. e.g. forums and places like Twitter seem empirically to work like
  95. casual conversation. The threshold may be whether what you write
  96. has a title.
  97. Thanks to Sam Altman, Patrick Collison, and Robert Morris
  98. for reading drafts of this.