underscored

@underscored

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Tag:second-order-thinkingClear

The biggest competitive advantage in business and investing is a quiet life that allows for more time to think. Being perpetually busy is a social signal, not a productivity strategy—and the market rewards those who can sit still long enough to see what others are too distracted to notice.

Howard Marks, Oaktree Capital Memo: 'Dare to Be Great II' (2014)
1mo ago

I would describe complex systems as multivariable nonlinear systems. And multivariable nonlinear systems are very hard to predict. They can behave one way for a long time, and then one variable can switch and they can behave another way—the weather, stock markets, all these things. There are consequences that can be first, second, or third-order. You can't just think with a linear model or just think about one variable because things can go way off the path. You need to be aware that if you make a change here, it could change something here, which could change something there, and it has to be the whole system.

3mo ago

Underscored — save the words that stop you in your tracks.

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