Understanding skill - a paradox
... See moreIf you double your skill, for example, the number of people producing at your level probably falls by much more than a factor of two. This helps explain Karlsson’s results. As he spent more time optimizing his essays, the pool of competition diminished rapidly, greatly increasing the value to his potential readers. The best strategy for growing his
Kahneman once laid out the path these stories take: When planning we focus on what we want to do and can do, neglecting the plans and skills of others whose decisions might affect our outcomes. Both in explaining the past and in predicting the future, we focus on the causal role of skill and neglect the role of luck. We focus on what we know and
... See moreTo surpass so many smart competitors, it’s not enough merely to outwork them. You also have to outthink them.
The fact that Ronald Read can coexist with Richard Fuscone has two explanations. One, financial outcomes are driven by luck, independent of intelligence and effort. That’s true to some extent, and this book will discuss it in further detail. Or, two (and I think more common), that financial success is not a hard science. It’s a soft skill, where
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