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