Continuing with my new protocol, here I’m going to share content I consumed and learned from. This week, I spent time doing general learning about a variety of topics.

What I consumed this week and what I learned from it:

• Seek advice on how to fail – YouTube interview with Alix Pasquet III. I love his idea about leveraging inversion by asking people who’ve had success at what you want to do, “What would I need to do to fail?” This helps you build a list of things to avoid and develop pattern recognition so you can spot those things if you start doing them. He also talked about another idea: that price memory triggers cognitive biases like the endowment effect, which can lead to avoidable losses because you don’t recognize threats (see here). And I love his thoughts on approaching successful people to bring them value, not extract value from them.
• Human intelligence = hierarchical memory + predictions – YouTube interview with Omer Cedar. He explains how humans use hierarchical memory and predictions to think. That’s hard to simulate, so machines and AI can’t yet think like humans. He also talks about his view that the propagation curve is driven by new information being recognized over time by investors (see here). This supports his view that change in the state of information is more important than the state of information (see here). It also supports his view that the amount of a surprise correlates to the amount of alpha available because of new information.

That’s what I learned from what I consumed last week.