Read on Twitter
A mini thread on the Mimetic Theory, Peter Thiel, and taking asymmetric risks.
First, let's understand the Mimetic Theory. It's a fancy way of saying we want things because other people want them.
Here's how it applies to the way we make decisions:
First, let's understand the Mimetic Theory. It's a fancy way of saying we want things because other people want them.
Here's how it applies to the way we make decisions:
As humans, we learn by looking at others and imitating what they do. This includes learning what we should desire.
If you respect someone, you’ll start desiring the same things they do. We are mime-ing their desire and projecting it as our own.
(I found this img on google)
If you respect someone, you’ll start desiring the same things they do. We are mime-ing their desire and projecting it as our own.
(I found this img on google)
This creates conflict and competition. We even convince ourselves that our desire is authentic and that the other parties are copycats!
This often creates a false sense of urgency, scarcity, and why it seems like people chase hype...because they do.
This often creates a false sense of urgency, scarcity, and why it seems like people chase hype...because they do.
When I say competition I always think back to Peter Thiel. His idea that competition should be avoided is an undervalued cheat code in life and business.
Like Thiel said, competition is for losers. I will also add, any ladder which is not defined by you is a losing ladder.
Like Thiel said, competition is for losers. I will also add, any ladder which is not defined by you is a losing ladder.
The reason we pick the defined ladder (L) is because it is defined. We are told what we should desire.
My goal in life is for everyone I know to discover and create their own ladder (R). It's not easy but can be very fulfilling when you get there.
My goal in life is for everyone I know to discover and create their own ladder (R). It's not easy but can be very fulfilling when you get there.
In life, we create rivals over desire for the same toy, crush, the house we must have.
In career, we agonize over titles, promotions, and career ladders.
In business, we compete over users, FOMO over a public stock or a popular Series A.
In career, we agonize over titles, promotions, and career ladders.
In business, we compete over users, FOMO over a public stock or a popular Series A.
There’s more value in being an independent thinker and coming to our own decisions than following the consensus.
By the Mimetic Theory, consensus and competition is leading us to something *other* people desire.
We have to think if this desire holds true for ourselves.
By the Mimetic Theory, consensus and competition is leading us to something *other* people desire.
We have to think if this desire holds true for ourselves.
On taking risks. Let’s say there’s a choice A and choice B.
A: Consensus, 95% probability of yield 10
B: Contrarian, 5% probability of yield 1000
Even over the course of 10 decisions
A —> 10(.95)(10) = 95
B —> 10(.05)(1000) = 500
B yields 5x higher
A: Consensus, 95% probability of yield 10
B: Contrarian, 5% probability of yield 1000
Even over the course of 10 decisions
A —> 10(.95)(10) = 95
B —> 10(.05)(1000) = 500
B yields 5x higher
That last part is fairly obvious. However, here’s what makes understanding this a cheat code
:
1. As A becomes more popular, the yield will diminish
2. Everyone else will also have the same outcome, so you have no edge
3. You get better at making these decisions
1. As A becomes more popular, the yield will diminish
2. Everyone else will also have the same outcome, so you have no edge
3. You get better at making these decisions
In summary, to get real alpha in life you have to follow 3 easy steps:
1. Avoid competition (don't be susceptible to mimetic desire)
2. Think independently, build your own ladder
3. Capitalize on asymmetric risks whenever possible
It’s that simple
1. Avoid competition (don't be susceptible to mimetic desire)
2. Think independently, build your own ladder
3. Capitalize on asymmetric risks whenever possible
It’s that simple
Dang, messed up the formatting in a few tweets but now you know it's legit and not copypasta
