I’ve shared Morgan Housel’s posts a few times over the past year. He shares notes from time to time that really hit the spot. And, the most recent post that hit home for me was one from last week titled “A few rules.”
Below are a few excerpts that resonated deeply.
The person who tells the most compelling story wins. Not the best idea. Just the story that catches people’s attention and gets them to nod their heads.
Tell people what they want to hear and you can be wrong indefinitely without penalty.
Being good at something doesn’t promise rewards. It doesn’t even promise a compliment. What’s rewarded in the world is scarcity, so what matters is what you can do that other people are bad at.
The world is governed by probability, but people think in black and white, right or wrong – did it happen or did it not? – because it’s easier.
Most fields have only a few laws. Lots of theories, hunches, observations, ideas, trends, and rules. But laws – things that are always true, all the time – are rare.
Simple explanations are appealing even when they’re wrong. “It’s complicated” isn’t persuasive even when it’s right.
Don’t expect balance from very talented people. People who are exceptionally good at one thing tend to be exceptionally bad at another, due to overconfidence and mental bandwidth taken up by the exceptional skill. Skills also have two sides: No one should be shocked when people who think about the world in unique ways you like also think about the world in unique ways you don’t like.
Reputations have momentum in both directions, because people want to associate with winners and avoid losers.