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jerryking : extrapolations   5

VC Pioneer Vinod Khosla Says AI Is Key to Long-Term Business Competitiveness - CIO Journal. - WSJ
Nov 15, 2016

“Improbables, which people don’t pay attention to, are not unimportant, we just don’t know which improbable is important,” Mr. Khosla said. “So what do you do? You don’t plan for the highest likelihood scenario. You plan for agility. And that is a fundamental choice we make as a nation, in national defense, as the CEO of a company, as the CIO of an infrastructure, of an organization, and in the way we live.”....So change, and predictions for the future, that are important, almost never come from anybody who knows the area. Almost anyone you talk to about the future of the auto industry will be wrong on the auto industry. So, no large change in a space has come from an incumbent. Retail came from Amazon. SpaceX came from a startup. Genentech did biotechnology. Youtube, Facebook, Twitter did media … because there is too much conventional wisdom in industry. ....Extrapolating the past is the wrong way to predict the future, and improbables are not unimportant. People plan around high probability. Improbables, which people don’t pay attention to, are not unimportant, we just don’t know which improbable is important.
Vinod_Khosla  artificial_intelligence  autonomous_vehicles  outsiders  gazelles  unknowns  automotive_industry  change  automation  diversity  agility  future  predictions  adaptability  probabilities  Uber  point-to-point  public_transit  data  infrastructure  information_overload  unthinkable  improbables  low_probability  extrapolations  pay_attention 
november 2016 by jerryking
The Mind of Marc Andreessen - The New Yorker
MAY 18, 2015 | New Yorker | BY TAD FRIEND.

Doug Leone, one of the leaders of Sequoia Capital, by consensus Silicon Valley’s top firm, said, “The biggest outcomes come when you break your previous mental model. The black-swan events of the past forty years—the PC, the router, the Internet, the iPhone—nobody had theses around those. So what’s useful to us is having Dumbo ears.”* A great V.C. keeps his ears pricked for a disturbing story with the elements of a fairy tale. This tale begins in another age (which happens to be the future), and features a lowborn hero who knows a secret from his hardscrabble experience. The hero encounters royalty (the V.C.s) who test him, and he harnesses magic (technology) to prevail. The tale ends in heaping treasure chests for all, borne home on the unicorn’s back....Marc Andreessen is tomorrow’s advance man, routinely laying out “what will happen in the next ten, twenty, thirty years,” as if he were glancing at his Google calendar. He views his acuity as a matter of careful observation and extrapolation, and often invokes William Gibson’s observation “The future is already here—it’s just not very evenly distributed.”....Andreessen applies a maxim from his friend and intellectual sparring partner Peter Thiel, who co-founded PayPal and was an early investor in LinkedIn and Yelp. When a reputable venture firm leads two consecutive rounds of investment in a company, Andreessen told me, Thiel believes that that is “a screaming buy signal, and the bigger the markup on the last round the more undervalued the company is.” Thiel’s point, which takes a moment to digest, is that, when a company grows extremely rapidly, even its bullish V.C.s, having recently set a relatively low value on the previous round, will be slightly stuck in the past. The faster the growth, the farther behind they’ll be....When a16z began, it didn’t have even an ersatz track record to promote. So Andreessen and Horowitz consulted on tactics with their friend Michael Ovitz, who co-founded the Hollywood talent agency Creative Artists Agency, in 1974. Ovitz told me that he’d advised them to distinguish themselves by treating the entrepreneur as a client: “Take the long view of your platform, rather than a transactional one. Call everyone a partner, offer services the others don’t, and help people who aren’t your clients. Disrupt to differentiate by becoming a dream-execution machine.”
Marc_Andreessen  Andreessen_Horowitz  Silicon_Valley  transactional_relationships  venture_capital  vc  Peter_Thiel  long-term  far-sightedness  Sequoia  mindsets  observations  partnerships  listening  insights  Doug_Leone  talent_representation  CAA  mental_models  warning_signs  signals  beforemath  unevenly_distributed  low_value  extrapolations  acuity  professional_service_firms  Michael_Ovitz  execution  William_Gibson 
may 2015 by jerryking
‘Can You Make a Living After Studying English? Sure You Can’ - At Work - WSJ
June 6, 2013,| WSJ | By Robert Matz

Why study the humanities? For readers of The Wall Street Journal, here are two economic arguments.

...can you make a living after studying English? Sure you can. Students who major in English acquire skills in high demand in a knowledge and service economy: clear writing and communication, attention to detail, flexible and creative thinking.

First, there is the law of supply and demand. Blanket recommendations that college students study a STEM field are obviously self-defeating. If every student were to follow this advice, there would be too few jobs in STEM to support them. We have seen this kind of glut with the law degree.

Second, a humanities education creates a positive externality. You can’t meter the benefits of critical intelligence or imagination, but you wouldn’t want a populace that lacked them. Adam Smith, the author of Lectures On Rhetoric and Belles Lettres as well as of The Wealth of Nations, worried in the latter that the division of labor would make the laboring poor “incapable of relishing or bearing a part in any rational conversation . . . of conceiving any generous, noble, or tender sentiment,” or of forming judgments regarding “the great and extensive interests of his country.” A nation with only technical expertise will similarly lack these virtues.

But can you make a living after studying English? Sure you can. Students who major in English acquire skills in high demand in a knowledge and service economy: clear writing and communication, attention to detail, flexible and creative thinking.

Still, not everyone should major in English. As a teacher in the field, I can tell you that some students couldn’t cut it. The deficits in their writing are too great to overcome, as are their difficulties in extrapolating from the particular to the general, or in thinking about problems in creative or original ways.

But students who can master the English major should feel confident that they are engaged in an enterprise that is valuable: personally, socially, and economically.

Robert Matz is chair of the George Mason English department.

This essay is part of a series on humanities studies and post-college employment.
humanities  STEM  career_paths  Colleges_&_Universities  Communicating_&_Connecting  liberal_arts  Adam_Smith  critical_thinking  English  self-defeating  externalities  detail_oriented  engaged_citizenry  extrapolations  writing 
june 2013 by jerryking
Oil guru points to substitutes keeping lid on energy prices
Apr. 19 2010 | Globe and Mail | DAVID PARKINSON.

"Essentially, all forecasting, no matter what's being forecast, is a straight-line extrapolation of what has been experienced very recently," he said in an interview in Toronto yesterday.

"All of our work is aimed at forecasting changes of direction and discontinuity, because that is the reality of the world. For the last several decades, our forecasts are nearly always this contrast with the consensus."
oil_industry  pricing  energy  substitution  forecasting  straight-lines  discontinuities  extrapolations  step_change  linearity 
june 2012 by jerryking
Investing Ideas That Stand Test of Time
April 25, 2000 | WSJ | Jonathan Clements

These days I find I am left with just three core investment ideas:
(1) Financial Success is a Sense of Control
If you ask folks about their financial goals, they will likely offer a laundry list of goods they want to buy or announce they want to accumulate as much money as possible. But in reality,
both goals are a prescription for unhappiness.
Sure it might be nice to purchase everything that catches your fancy. But nobody has unlimited wealth, so a focus on endless consumption inevitably results not in happiness, but in frustration and financial stress. Yeah, it would also be great to have heaps of money. But if all you want is an even bigger pile of cash, you will never be satisfied, because you will never reach your goal. So what should you
shoot for? A far more worthy goal, I believe, is eliminating the anxiety that comes with managing money. You want to reach that sweet spot where you feel your finances are under control, no matter what your standard of living and level of wealth.

(2)Investing is Simple
No doubts about it, there are lots of investments and investment strategies that are mighty complicated. But complexity usually means investors are running the risk of rotten results and Wall Street is getting the chance to charge fat fees. Investing is best when it is simple. In fact, if you want to accumulate a healthy nest egg, there
isn’t much to it. First, you have to save a goodly amount, preferably at least ten percent of your pre-tax annual income. Second, you should consider investing at least half of your portfolio in stocks, even if you are approaching retirement. Third, you should diversify broadly, owning a decent mix of large, small and foreign stocks. Fourth, you should hold down investment costs, including
brokerage commissions, annual fund expenses and taxes. Finally, you should give it time. A little humility also helps. Don’t waste effort — and risk havoc — by trying to pick the next hot stock, identify the next superstar fund manager or guess the market’s next move. Instead, your best bet is to buy and hold a few well-run mutual funds.

(3) We are the enemy
If successful investing is so simple, why do so many people mess up? It isn’t the markets that are the problem, it is the investors.
We make all sorts of mistakes. We fret about the performance of each investment that we own, so we don’t enjoy the benefits of diversification. We are often overly self-confident, which
prompts us to trade too much and bet too heavily on a single stock or market sector. We
extrapolate recent results, leading to excessive exuberance when stocks are rising and unjustified
pessimism when markets decline. We lack self-control, so we don’t save enough.

[All the points made immediately above are analogous to Jason Zweig's article on personal finance & investing. From Benjamin Graham --investing is often portrayed as a battle between you and the markets. Instead, “the investor’s chief problem — and even his worst enemy — is likely to be himself.”

Similarly, Nobel Laureate Daniel Kahneman wrote in his book Thinking, Fast and Slow. [that]evaluating yourself honestly is at least as important as evaluating your investments accurately. If you don’t force yourself to learn your limits as an investor, then it doesn’t matter how much you learn about the markets: Your emotions will be your undoing.... ]

If you are going to truly be a successful and happy investor, it isn’t enough simply to devise
strategies that allow you to meet your investment goals. Your strategies also must give you a
sense of financial control and fit with your risk tolerance, so that you stick with them through the
inevitable market turmoil.
That may mean keeping more of your money in bonds and money-market funds. It could mean
paying for an investment advisor. It might mean scaling back your financial goals and accepting
that the kids won’t be heading to Harvard and that you won’t be able to retire early.
These sorts of choices aren’t foolish. What’s foolish is settling on investment strategies without
considering whether you can see them through.
personal_finance  investing  howto  ideas  goal-setting  Nobel_Prizes  money_management  Jonathan_Clements  financial_literacy  biases  humility  mistakes  self-awareness  self-control  proclivities  overconfidence  financial_planning  delusions  self-delusions  emotions  human_frailties  Jason_Zweig  extrapolations  risk-tolerance  recency  unhappiness  human_errors  bear_markets  sense_of_control  superstars  Daniel_Kahneman 
may 2012 by jerryking

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