3 Insights
“We must be what we wish our children to be. They will form their characters from ours.” — John S.C. Abbott
“Children are not casual guests in our home. They have been loaned to us temporarily for the purpose of loving them and instilling a foundation of values on which their future lives will be built.” — James Dobson
“Before I got married I had six theories about raising children; now, I have six children and no theories.” — John Wilmot
What I Learned this Week
The famous concept of “flow” in psychology, developed by Mihaly Csikszentmihalyi, is fascinating. Through his research, he concluded that happiness is not merely a result of external circumstances but an internal state of being. Several of his interview subjects described their experiences through the metaphor of a water current carrying them along. As a result, the term and positive psychological concept of a “flow state” was created.
Green Canyon (Martin Sanchez)
I often remind my kids to focus on the process, not the result. It’s as much a reminder for them as it’s for me. As Csikszentmihalyi explained it, flow is “a state in which people are so involved in an activity that nothing else seems to matter; the experience is so enjoyable that people will continue to do it even at great cost, for the sheer sake of doing it.”
Embrace Discomfort
The lust and thirst for comfort is a sly pathogen that enters the mind as a guest—only to soon become your host, and ultimately, your master.
James Clear isn’t wrong: “You’re only as tough as your life demands you to be. An easy life fashions a mind that can only handle ease. A challenging life builds a mind that can handle challenge. Like a muscle that atrophies without any use, mental strength fades unless it’s tested. When life doesn’t challenge you, challenge yourself.”
Nietzsche also reminded us that someone that has not experienced greater things than others won’t know how to interpret the great things of the past.
History is a story of ENDINGS. It freezes us into inaction.
Jash Dholani wrote: “History paralyzes you. History says: build a company and it’ll fall. Write a book and people will forget about it. Create a new technology and people will soon replace it with another one. The more you strive to shape the future, the louder history clamor to teach you lessons.”
Yet it’s precisely through challenging ourselves, embracing discomfort, and shaping the future that we overcome the weight of history’s lessons and unlock our true potential.
Lindys vs. Turkeys
I came across an intriguing post by 10-K Diver on X, where they explained a fascinating concept, assessing the longevity of companies.
The post highlighted a valuable framework that can help investors better understand how to evaluate businesses in their portfolios, focusing on two key categories: “Lindy” and “Turkey” companies.
The “Lindy” Concept:
The “Lindy” idea, popularized by Nassim Taleb, suggests that things which have already survived for a long time are more likely to continue surviving in the future. The idea is based on the principle that time itself acts as a proof of strength or resilience.
For example, if a company has been around for 50 years, there’s a higher probability it will be around for another 50 years. In business, this longevity is often an indication of a durable competitive advantage or ‘moat’ that makes the company more resilient to external threats.
The “Turkey” Concept:
In contrast, “Turkeys” refer to businesses that may have had a streak of success but aren’t necessarily resilient. This term is derived from Taleb’s analogy in The Black Swan, where a turkey lives a carefree life for 364 days, only to be slaughtered on the 365th day (Thanksgiving). The business equivalent of a ‘turkey’ may seem to be doing well, but its success may be based on luck rather than inherent strength.
Turkeys don’t improve over time or become harder to kill. They may have simply survived by chance and are eventually vulnerable to disruption or failure.
The Longevity Bet:
When buying shares in a company, investors are essentially betting on how long the company will continue to survive and generate value. A key part of this bet involves considering the company’s longevity and its ability to keep paying dividends or growing its business over time.
How to Identify Lindys vs. Turkeys:
The difference lies in the company’s ability to improve over time and become more resilient. Lindy companies continuously improve their position and become more difficult to kill over time. For example, companies like Apple benefit from a growing ecosystem that makes their products ‘stickier’ for users.
Over time, the more customers rely on Apple’s services, the harder it is for competitors to displace them.
On the other hand, Turkeys are not evolving. They may be able to survive for a period, but they don’t improve their competitiveness or become more robust. They are simply relying on luck to keep them afloat.
Reflections
How can I strengthen my mind to better face my struggles? Are there habits I can develop to make me harder to kill?
The Real Con 112