Comment by benterix

2 days ago

It's a cliche but people really underestimate and try to downplay the role of luck[0].

[0] https://www.scientificamerican.com/blog/beautiful-minds/the-...

Luck. And capturing strong network effect.

The ascents of the era all feel like examples of anti-markets, of having gotten yourself into an intermediary position where you control both side's access.

People also underestimate the value of maximizing opportunities for luck. If we think of luck as random external chance that we can't control, then what can we control? Doing things that increase your exposure to opportunities without spreading yourself too thin is the key. Easier said than done to strike that balance, but getting out there and trying a lot of things is a viable strategy even if only a few of them pay off. The trick is deciding how long to stick with something that doesn't appear to be working out.

Ability vastly increases your luck surface area. A single poker hand has a lot of luck, and even a game, but over long periods, ability starts to strongly differentiate peoples' results.

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  • This might be true for a normal definition of success, but not lottery-winner style success like Facebook. If you look at Microsoft, Netflix, Apple, Amazon, Google, and so on, the founders all have few or zero previous attempts at starting a business. My theory is that this leads them to pursue risky behavior that more experienced leaders wouldn't try, and because they were in the right place at the right time, that earned them the largest rewards.

    • Not true of Netflix, founder came from PayPal. Apple required founder to leave and learn with a bunch of other companies like Pixar and next.

  • This is just cope for people with a massive string of failed attempts and no successes.

    Daddy's giving you another $50,000 because he loves you, not because he expects your seventh business (blockchain for yoga studio class bookings) is going to go any better than the last six.

  • IMO this strengthens the case for luck. If the probability of winning the lottery is P, then trying N times gives you a probability of 1-(1-P)^N.

    Who's more likely to win, someone with one lottery ticket or someone with a hundred?

  • "Socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires."

    Some will read this and laser in on the "socialism" part, but obviously the interesting bit is the second half of the quote.