omar halabieh

On Truman

I recently finished reading Truman by Pulitzer Prize winner David McCullough.

Below are key excerpts from the book that I found to be insightful:

The influence of his teachers on his life, Harry later said, was second only to that of his mother, and when crediting a Tillie Brown or a Margaret Phelps for all they had done for him, he did so with the assumption that everybody of his generation had a Tillie Brown or Margaret Phelps in their background and could therefore understand how he felt.

More important and equally unexpected was the way in which he proved himself a leader. His first day in office he spoke to the point: We intend to operate the country government for the benefit of the taxpayers. While we were elected as Democrats, we were also elected as public servants. We will appoint all Democrats to jobs appointable but we are going to see that every man does a full day’s work for his pay. In other words we are going to conduct the county’s affairs as efficiently and economically as possible.

“Three things ruin a man ” Harry would tell a reporter long afterward. “Power, money, and women. “I never wanted power,” he said. “I never had any money, and the only woman in my life is up at the house right now.”

“It is a pity that Wall Street, with its ability to control all the wealth of the nation and to hire the best law brains in the country, has not produced some statesmen, some men who could see the dangers of bigness and of the concentration of the control of wealth. Instead of working to meet the situation, they are still employing the best law brains to serve greed and self-interest. People can stand only so much, and one of these days there will be a settlement…”

To the country, the Congress, the Washington bureaucracy, to hundreds of veteran New Dealers besides those who had gathered in the Cabinet Room, to much of the military high command, to millions of American men and women overseas, the news of Franklin Roosevelt’s death, followed by the realization that Harry Truman was President, struck like massive earth tremors in quick succession, the thought of Truman in the White House coming with the force of a shock wave. To many it was not just that the greatest of men had fallen, but that the least of men—or at any rate the least likely of men—had assumed his place.

“If we can put this tremendous machine of ours, which has made victory possible, to work for peace, we can look forward to the greatest age in the history of mankind. That is what we propose to do.”

The cost of winning the war had been $341 billion. Now $400 million was needed for Greece and Turkey. “This is a serious course upon which we embark,” Truman said at the finish, and the look on his face was serious indeed. “I would not recommend it except that the alternative is much more serious…If we falter in our leadership, we may endanger the peace of the world, and we shall surely endanger the welfare of this nation.”

The line between communism and democracy was clear: Communism is based on the belief that man is so weak and inadequate that he is unable to govern himself, and therefore requires the rule of strong masters.i Democracy is based on the conviction that man has the moral and intellectual capacity, as well as the inalienable right, to govern himself with reason and fairness. Communism subjects the individual to arrest without lawful cause. punishment without trial, and forced labor as the chattel of the state. It decrees what information he shall receive, what art he shall produce, what leaders he shall follow, and what thoughts he shall think. Democracy maintains that government is established for the benefit Democracy maintains that government is established for the benefit of the individual, and is charged with the responsibility of protecting the rights of the individual and his freedom in the exercise of those abilities…

“This is a Republic. The greatest in the history of the world. I want the country to continue as a Republic. Cincinnatus and Washington pointed the way. When Rome forgot Cincinnatus its downfall began. When we forget the examples of such men as Washington, Jefferson, and Andrew Jackson, all of whom could have had a continuation in the office, then we will start down the road to dictatorship and ruin. I know I could be elected again and continue to break the old precedent as it was broken by F.D.R It should not be done. That precedent should continue—not by Constitutional amendment but by custom based on the honor of the man in office. Therefore to reestablish that custom, although by a quibble I could say I have only had one term, I am not a candidate and will not accept the nomination for another term.”

But if the firing of MacArthur had taken a heavy toll politically, if Truman as President had been less than a master of persuasion, he had accomplished a very great deal and demonstrated extraordinary patience and strength of character in how he rode out the storm.

He was remembered as the first president to recommend Medicare, remembered for the courage of his stand on civil rights at the risk of his political fortunes. The whistle-stop campaign was recalled as one of the affirming moments in the history of the American political system.

On a closing note:

Ambitious by nature, he was never torn by ambition, never tried to appear as something he was not. He stood for common sense, common decency. He spoke the common tongue. As much as any president since Lincoln, he brought to the highest office the language and values of the common American people. He held to the old guidelines: work hard, do your best, speak the truth, assume no airs, trust in God, have no fear. Yet he was not and had never been a simple, ordinary man. The homely attributes, the Missouri wit, the warmth of his friendship, the genuineness of Harry Truman, however appealing, were outweighed by the larger qualities that made him a figure of world stature, both a great and good man, and a great American president.

A highly recommended read on Leadership and History.

 

 

Advertisements

On Style

I recently finished reading Style – The Basics of Clarity and Grace – by Joseph M. Williams.

Below are key excerpts from the book that I found particularly insightful:

When we don’t know what we’re talking about (or have no confidence in what we do know) we typically write long sentences choked with abstract words.

I suspect that those who choose to observe all the rules all the time do so not because they think they are protecting the integrity of the language or the quality of our culture, but because they want to assert a style of their own.

We began with two principles: •Make central characters subjects of verbs. • Use verbs to name the actions those characters are involved in.

Most readers prefer subjects of verbs to name the main characters in your story, and those main characters to be flesh-and-blood characters. When you write about concepts, however, you can turn them into virtual characters by making them the subjects of verbs that communicate actions.

Your readers want you to use the end of your sentences to communicate two kinds of difficulty: long and complex phrases and clauses; and new information, particularly unfamiliar technical terms.

Five Principles of Concision: 1. Delete words that mean little or nothing. 2. Delete words that repeat the meaning of other words. 3. Delete words implied by other words. 4. Replace a phrase with a word. 5. Change negatives to affirmatives.

A highly recommended read in the area of writing.

 

On The Inner Game of Tennis

I recently finished reading The Inner Game of Tennis by W. Timothy Gallwey.

Below are key excerpts from the book that I found insightful:

It is the thesis of this book that neither mastery nor satisfaction can be found in the playing of any game nor without giving some attrition to the relatively new relatively neglected skills of the inner game. This is the game that takes place in the mind of the player, and it is played against such obstacles as lapses in concentration, nervousness, self-doubt and self-condemnation. In short, it is played to overcome all habits of mind which inhibit excellence in performance.

Getting it together mentally in tennis involves the learning of several internal skills: 1) learning to program your computer Self 2 with images rather than instructing yourself with words; 2) learning to trust thyself  (Self 2) to do what you (Self 1) ask of it This means letting Self 2 hit the ball and 3) learning to see ”nonjudgmentally”—that is, to see what is happening rather than merely noticing how well or how badly it is happening. This overcomes “trying too hard.” All these skills are subsidiary to the master skill, without which nothing of value is ever achieved: the art of concentration.

The first inner skill to be developed in the Inner Game is that of nonjudgmental awareness. When we “Unlearn” judgment we discover, usually with some surprise, that we don’t need the motivation rf a reformer to change our “bad” habits.There is a more natural process of learning and performing waiting to be discovered. It is waiting to show what it can do when allowed to operate without interference from the conscious strivings of the  judgmental ego-mind. The discovery of and reliance upon this process is the subject of the next chapter.

The main job of Self 1, the conscious ego-mind, is to set goals, that is, to communicate to Self 2 what he wants from it and then to let Self 2 do it.

The time for change comes when we realize that the same function could be served in a better way.

Step 1 – Observe, Nonjudgmentally, Existing Behavior…Step 2 Ask Yourself to Change, Programming with Image and Feel…Step3 Let It Happen! Step 4: Nonjudgmental, Calm Observation of the Results Leading to Continuing Observation of Process until Behavior Is in Automatic…Step 4 Observation.

By increasing the effective power of awareness, concentration allows us to throw more light on whatever we value knowing, and to that extent enables us to know and enjoy it more.

Children who have been taught to measure themselves in this way often be come adults driven by a compulsion to succeed which overshadows all else. The tragedy of this belief is not that they will fail to find the success they seek, but that they will not discover the love or even tithe self-respect they were led to believe will come with it. Furthermore, in their single-minded pursuit of measurable success, the development of many other human potentialities is sadly neglected.

On a closing note:

Winning is overcoming obstacles to reach a goal, but the value in winning is only as great as the value of the goal reached. Reaching the goal itself may not be as valuable as the experience that can come in making a supreme effort to overcome the obstacles involved. The process can be more rewarding than the victory itself.

A highly recommended read in the area of personal development.

On The Better Angels of our Nature

I recently finished reading The Better Angels of our Nature – Why Violence Has Declined – by Steven Pinker.

Below are excerpts from this book that I found particularly insightful:

This book is about what may be the most important thing that has ever happened in human history…No aspect of life is untouched by the retreat from violence. Daily existence is very different if you always have to worry about being abducted, raped, or killed, and it’s hard to develop sophisticated arts, learning, or commerce if the institutions that support them are looted and burned as quickly as they are built.

Systemic cruelty was far from unique to Europe. Hundreds of methods of torture, applied to millions of victims, have been documented in other civilizations, including the Assyrians, Persians, Seleucids, Romans, Chinese, Hindus, Polynesians, Aztecs, and many African kingdoms and Native American tribes. Brutal killings and punishments were also documented among the Israelites, Greeks, Arabs, and Ottoman Turks. Indeed, as we saw at the end of chapter 2, all of the first complex civilizations were absolutist theocracies which punished victimless crimes with torture and mutilation.

He then outlined his three conditions for perpetual peace. The first is that states should be democratic. Kant himself preferred the term republican, because he associated the word democracy with mob rule; what he had in mind was a government dedicated to freedom, equality, and the rule of law…Kant’s second condition for perpetual peace was that “the law of nations shall be founded on a Federation of Free States”—a “League of Nations,” as he also called it…The third condition for perpetual peace is “universal hospitality” or “world citizenship.”

An interesting question is what inflated the empathy circle. And a good candidate is the expansion of literacy.

The vulnerability to civil war of countries in which control of the government is a winner-take-all jackpot is multiplied when the government controls windfalls like oil, gold, diamonds, and strategic minerals. Far from being a blessing, these bonanzas create the so-called resource curse, also known as the paradox of plenty and fool’s gold. Countries with an abundance of nonrenewable, easily monopolized resources have slower economic growth, crappier governments, and more violence.

Why should the spread of ideas and people result in reforms that lower violence? There are several pathways. The most obvious is a debunking of ignorance and superstition…Another causal pathway is an increase in invitations to adopt the viewpoints of people unlike oneself.

Dangerous ideologies erupt when these faculties fall into toxic combinations. Someone theorizes that infinite good can be attained by eliminating a demonized or dehumanized group. A kernel of like-minded believers spreads the idea by punishing disbelievers. Clusters of people are swayed or intimidated into endorsing it. Skeptics are silenced or isolated. Self-serving rationalizations allow people to carry out the scheme against what should be their better judgment.

On a closing note:

Yet while this planet has gone cycling on according to the fixed law of gravity, that species has also found ways to bring the numbers down, and allow a greater and greater proportion of humanity to live in peace and die of natural causes. For all the tribulations in our lives, for all the troubles that remain in the world, the decline of violence is an accomplishment we can savor, and an impetus to cherish the forces of civilization and enlightenment that made it possible.

A highly recommended read in the areas of sociology and psychology.

On Common Sense on Mutual Funds

I recently finished reading Common Sense on Mutual Funds – New Imperatives for the Intelligent Investor – by John C. Bogle.

Below are key excerpts from this book that I found to be insightful:

Investing is an act of faith. We entrust our capital to corporate stewards in the faith—at least with the hope—that their efforts will generate high rates of return on our investments. When we purchase corporate America’s stocks and bonds, we are professing our faith that the long-term success of the U.S. economy and the nation’s financial markets will continue in the future.

To state the obvious, the long-term investor who pays least has the greatest opportunity to earn most of the real return provided by the stock market.

In my view, market timing and rapid turnover—both by and for mutual fund investors—betray both a lack of understanding of the economics of investing and an infatuation with the process of investing.

My guidelines also respect what I call the four dimensions of investing: (1) return, (2) risk, (3) cost, and (4) time. When you select your portfolio’s long-term allocation to stocks and bonds, you must make a decision about the real returns you can expect to earn and the risks to which your portfolio will be exposed. You must also consider the costs of investing that you will incur. Costs will tend to reduce your return and/or increase the risks you must take. Think of return, risk, and cost as the three spatial dimensions—the length, breadth, and width—of a cube. Then think of time as the temporal fourth dimension that interplays with each of the other three. For instance, if your time horizon is long, you can afford to take more risk than if your horizon is short, and vice versa.

Rule 1: Select Low-Cost Funds…Rule 2: Consider Carefully the Added Costs of Advice…Rule 3: Do Not Overrate Past Fund Performance…Rule 4: Use Past Performance to Determine Consistency and Risk…Rule 5: Beware of Stars…Rule 6: Beware of Asset Size…Rule 7: Don’t Own Too Many Funds…Rule 8: Buy Your Fund Portfolio—And Hold It.

No matter what fund style you seek, you should emphasize low-cost funds and eschew high-cost funds. And, for the best bet of all, you should consider indexing in whichever style category you want to include.

There are three major reasons why large size inhibits the achievement of superior returns: the universe of stocks available for a fund’s portfolio declines; transaction costs increase; and portfolio management becomes increasingly structured, group-oriented, and less reliant on savvy individuals.

Four principal problems are created by this overemphasis on marketing. First, it costs mutual fund shareholders a great deal of money— billions of dollars of extra fund expenses—which reduces the returns received by shareholders. Second, these large expenditures not only offer no countervailing benefit in terms of shareholder returns, but, to the extent they succeed in bringing additional assets into the funds, have a powerful tendency to further reduce fund returns. Third, mutual funds are too often hyped and hawked, and trusting investors may be imperiled by the risks assumed by, and deluded about the potential returns of, the funds. Lastly, and perhaps most significant of all, the distribution drive alters the relationship between investors and funds. Rather than being perceived as an owner oi the fund, the shareholder is perceived as a mere customer of the adviser.

On a closing note, on leadership:

To wrap up this litany, I put before you—both tentatively and humbly—a final attribute of leadership: courage. Sometimes, an enterprise has to dig down deep and have the courage of its convictions—to “press on,” regardless of adversity or scorn. Vanguard has been a truly contrarian firm in its mutual structure, in its drive for low costs and a fair shake for investors, in its conservative investment philosophy, in market index funds, and in shunning hot products, marketing gimmicks, and the carpet-bombing approach to advertising so abundantly evident elsewhere in this industry today. Sometimes, it takes a lot of courage to stay the course when fickle taste is in the saddle, but we have stood by our conviction: In the long run, when there is a gap between perception and reality, it is only a matter of time until reality carries the day.

A recommended read in the areas of investing and leadership.

On The China Study

I recently finished reading The China Study – Startling Implications For Diet, Weight Loss and Long-Term Health – by T. Colin Campbell, PhD and Thomas M. Campbell II.

Below are key insights from the book that I found to be insightful:

After a long career in research and policy making, 1 now understand why Americans are so confused. As a taxpayer who foots the bill for research and health policy in America, you deserve to know that many of the common notions you have been told about food, health and disease are wrong.

These findings demonstrate that a good diet is the most powerful weapon we have against disease and sickness. An understanding of this scientific evidence is not only important for improving health; it also has profound implications for our entire society. We must know why misinformation dominates our society and why we are grossly mistaken in how we investigate diet and disease, how we promote health and how we treat illness.

But just like seeds in the soil, the initial cancer cells will not grow and multiply unless the right conditions are met…Promotion is reversible, depending on whether the early cancer growth is given the right conditions in which to grow. This is where certain dietary factors become so important.

Yes, changing your lifestyle may seem impractical. It may seem impractical to give up meat and high-fat foods, but I wonder how practical it is to be 350 pounds and have Type 2 diabetes at the age of fifteen, like the girl mentioned at the start of this chapter. I wonder how practical it is to have a lifelong condition that can’t be cured by drugs or surgery; a condition that often leads to heart disease, stroke, blindness or amputation; a condition that might require you to inject insulin into your body every day for the rest of your life.

Nutrition represents the combined activities of countless food substances. The whole is greater than the sum of its parts…Vitamin supplements are not a panacea for good health…There are virtually no nutrients in animal-based foods that are not better provided by plants…Genes do not determine disease on their own. Genes function only by being activated, or expressed. and nutrition plays a critical role in determining which genes, good and bad, are expressed…Nutrition can substantially control the adverse effects of noxious chemicals…The same nutrition that prevents disease in its early stages (before diagnosis) can also halt or reverse disease in its later stages (after diagnosis)…Nutrition that is truly beneficial for one chronic disease will support health across the board…Good nutrition creates health in all areas of our existence. All parts are interconnected.

Perhaps worst of all industry corrupts scientific evidence even when its product has been linked to serious health problems. Our kids are often the most coveted targets of their marketing. The American government has passed legislation preventing cigarette and alcohol companies from marketing their products to children. Why have we ignored food? Even though it is accepted that food plays a major role in many chronic diseases, we allow food industries not only to market directly to children, but also to use our publicly-funded school systems to do it. The long-term burden of our short-sighted indiscretion is incalculable.

In terms of education, medical students and house officers, under the constant tutelage of industry representatives, learn to rely on the drugs and devices more than they probably should [my emphasis]. As the critics of medicine so often charge, young physicians learn that for every problem, there is a pill [my emphasis] (and a drug company representative to explain it). They also become accustomed to receiving gifts and favors from an industry that uses these courtesies to influence their continuing education. The academic medical centers, in allowing themselves to become research outposts for industry, contribute to the overemphasis on drugs and devices.”

On a closing note:

History can repeat itself. This time, however, instead of the message being forgotten and confined to library stacks, I believe that the world is finally ready to accept it. More than that, I believe the world is finally ready to change. We have reached a point in our history where our bad habits can no longer be tolerated. We, as a society, are on the edge of a great precipice we can fall to sickness, poverty and degradation, or we can embrace health, longevity and bounty. And all it takes is the courage to change. How will our grandchildren find themselves in 100 years? Only time will tell, but I hope that the history we are witnessing and the future that lies ahead will be to the benefit of us all.

A highly recommended read in the area of nutrition.

On The Guns of August

I recently finished reading The Guns of August, the Pulitzer Prize-Winning Classic about the Outbreak of World War I, by Barbara W. Tuchman.

Below are key excerpts from the book that I found particularly insightful:

Wilson, facing this group of “ignorant men,” as he called them, and accompanied by his fellow officer and future chief, Sir John French, “who knows nothing at all about the subject,” pinned up his great map of Belgium on the wall and lectured for two hours. He swept away many illusions when he explained how Germany, counting on Russia’s slow mobilization, would send the bulk of her forces against the French, achieving superiority of numbers over them. He correctly predicated the German plan of attack upon a right-wing envelopment but, schooled in the French theories, estimated the force that would come down west of the Meuse at no more than four divisions. He stated that, if all six British divisions were sent immediately upon the outbreak of war to the extreme left of the French line, the chances of stopping the Germans would be favorable.

Coming from Haldane this conclusion had a profound effect upon Liberal thinking and planning. The first result was a naval pact with France by which the British undertook at threat of war to safeguard the Channel and French coasts from enemy attack, leaving the French fleet free to concentrate in the Mediterranean. As this disposed the French fleet where it would not otherwise be, except by virtue of the agreement, it left a distinct obligation upon Britain…This curious document managed to satisfy everybody: the French because the whole British Cabinet Government had now officially acknowledged the existence of the joint plans, the antiwar group because it said England was not “committed,” and Grey because he had evolved a England was not “committed,” and Grey because he had evolved a formula that both saved the plans and quieted their opponents. To have substituted a definite alliance with France, as he was urged in some quarters, would “break up the Cabinet,” he said.

War pressed against every frontier. Suddenly dismayed, governments Struggled and twisted to fend it off. It was no use. Agents at frontiers were reporting every cavalry patrol as a deployment to beat the mobilization gun. General staffs, goaded by their relentless timetables, were pounding the table for the signal to move lest their opponents gain an hour’s head start. Appalled upon the brink, the chiefs of state who would be ultimately responsible for their country’s fate attempted to back away but the pull of military schedules dragged them forward.

How far reduced, how distant the end, no one yet knew. No one could realize that for numbers engaged and for rate and number of losses suffered over a comparable period of combat, the greatest battle of the war had already been fought. No one could yet foresee its consequences: how the ultimate occupation of all Belgium and northern France would put the Germans in possession of the industrial power of both countries, of the manufactures of Liege, the coal of the Borinage, the iron ore of Lorraine, the factories of Lille, the rivers and railroads and agriculture, and how this occupation, feeding German ambition and fastening upon France the fixed resolve to fight to the last drop of recovery and reparation, would block all later attempts at compromise peace or “peace without victory” and would prolong the war for four more years.

At the time of the disaster General Marquis de Laguiche, the French military attache came to express his condolences to the Commander • in Chief. ‘We are happy to have made such sacrifices for our Allies,” the Grand Duke replied gallantly. Equanimity in the face of catastrophe was his code, and Russians, in the knowledge of inexhaustible supplies of manpower, are accustomed to accepting gigantic fatalities with comparative calm. The Russian steam roller in which the Western Allies placed such hopes, which after their debacle on the Western Front was awaited even more anxiously, had fallen apart on the road as if it had been put together with pins. In its premature start and early demise it had been. Just as the Grand Duke said, a sacrifice for an ally. Whatever it cost the Russians, the sacrifice accomplished what the French wanted: withdrawal of German strength from the Western Front. The two corps that came too late for Tannenberg were to be absent from the Mame.

But Francois faced battle, whereas Kluck, thinking he faced only pursuit and mopping up, ignored the precaution. He believed the French incapable, after ten days of retreat, of the morale and energy required to turn around at the sound of the bugle and fight again. Nor was he worried about his flank. “The General fears nothing from the direction of Paris,” recorded an officer on September 4. “After we have destroyed the remains of the Franco-British Army he will return to Paris and give the IVth Reserve the honor of leading the entry into the French capital.”

In conclusion:

After the Marne the war grew and spread until it drew in the nations of both hemispheres and entangled them in a pattern of world conflict no peace treaty could dissolve. The Battle of the Mame was one of the decisive battles of the world not because it determined that Germany would ultimately lose or the Allies ultimately win the war but because it determined that the war would go on. There was no looking back, Joffre told the soldiers on the eve. Afterward there was no turning back. The nations were caught in a trap, a trap made during the first thirty days out of battles that failed to be decisive, a trap from which there was, and has been, no exit.

A recommended read in the areas of history and military conflicts.

On The Everything Store

I recently finished reading The Everything Store – Jeff Bezos and the Age of Amazon – by Brad Stone.

Below are key excerpts from the book that I found particularly insightful:

There is so much stuff that has yet to he invented. There’s so much new that’s going to happen. People don’t have any idea yet how impactful the Internet is going to be and that this is still Day 1 in such a big way.

“If you want to get to the truth about what makes us different, it’s this,” Bezos says, veering into a familiar Jeffism: “We are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent. Most companies are not those things. They are focused on the competitor, rather than the customer. They want to work on things that will pay dividends in two or three years, and if they don’t work in two or three years they will move on to something else. And they prefer to be close-followers rather than inventors, because it’s safer. So if you want to capture the truth about Amazon, that is why we are different. Very few companies have all of those three elements.

So looking back on life’s important junctures was on Bezos’s mind when he came up with what he calls “the regret-minimization framework” to decide the next step to take at this juncture in his career.

We believe that a fundamental measure of our success will be the shareholder value we create over the long term. This value will be a direct result of our ability to extend and solidify our current market leadership position. The stronger our market leadership, the more powerful our economic model. Market leadership can translate direct! to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital. Our decisions have consistently reflected this focus. We first measure ourselves in terms of the metrics most indicative of our market leadership: customer and revenue growth, the degree to which our customers continue to purchase from us on a repeat basis, and the strength of our brand. We have invested and will continue to invest aggressively to expand and leverage our customer base, brand, and infrastructure as we move to establish an enduring franchise.

Jeff Bezos embodied the qualities Sam Walton wrote about. He was constitutionally unwilling to watch Amazon succumb to any kind of institutional torpor, and he generated a nonstop flood of ideas on how to improve the experience of the website, make it more compelling for customers, and keep it one step ahead of rivals.

Bezos was obsessed with the customer experience, and anyone who didn’t have the same single-minded focus or who he felt wasn’t demonstrating a capacity for thinking big bore the brunt of his considerable temper.

“My approach has always been that value trumps everything,” Sinegal continued. “The reason people are prepared to come to our strange places to shop is that we have value. We deliver on that value constantly. There are no annuities in this business.” A decade later and finally preparing to retire, Sinegal remembers that conversation well. “I think Jeff looked at it and thought that was something that would apply to his business as well,” he says.

“I understand what you’re saying, but you are completely wrong,’ he said. “Communication is a sign of dysfunction. It means people aren’t working together in a close, organic way. We should be trying to figure out a way for teams to communicate less with each other. not more.”

That was a typical interaction with Jeff. He had this unbelievable ability to be incredibly intelligent about things he had nothing to do with, and he was totally ruthless about communicating it.

If Amazon wanted to stimulate creativity among its developers, it shouldn’t try to guess what kind of services they might want; such guesses would be based on patterns of the past. Instead, it should be creating primitives—the building blocks of computing—and then getting out of the way. In other words, it needed to break its infrastructure down into the smallest, simplest atomic components and allow developers to freely access them with as much flexibility as possible.

‘Jeff does a couple of things better than anyone I’ve ever worked for,” Dalzell says. “He embraces the truth. A lot of people talk about the truth, but they don’t engage their decision-making around the best truth at the time. “The second thing is that he is not tethered by conventional thinking. What is amazing to me is that he is bound only by the laws of physics. He can’t change those. Everything else he views as open to discussion.”

On a closing note:

Amazon may be the most beguiling company that ever existed. and it is just getting started. It is both missionary and mercenary. and throughout the history of business and other human affairs, that has always been a potent combination. “We don’t have a single big advantage,” he once told an old adversary, publisher Tim O’Reilly, back when they were arguing over Amazon protecting its patented 1-Click ordering method from rivals like Barnes & Noble. “So we have to weave a rope of many small advantages.” Amazon is still weaving that rope. That is its future, to keep weaving and growing, manifesting the constitutional relentlessness of its founder and his vision. And it will continue to expand until either Jeff Bezos exits the scene or no one is left to stand in his way.

A recommended read in the areas of technology and corporate history.

On Don’t Make Think

I recently finished reading Don’t Make Me Think – A Common Sense Approach to Web Usability – by Steve Krug.

Below are key excerpts from the book that I found to be insightful:

But when I’m looking at a page that makes me think, all the thought balloons over my head have question marks in them. When you’re creating a site, your job is to get rid of the question marks.

We don’t read pages. We scan them…We’re usually in a hurry…We know we don’t need to read everything…We’re good at it.

We don’t make optimal choices. We satisfice…We’re usually in a hurry…There’s not much of a penalty for guessing wrong…Weighing options may not improve our chances…Guessing is more fun.

there are five important things you can do to make sure they see—and understand—as much of your site as possible: Create a clear visual hierarchy on each page…Take advantage of conventions…Break pages up into clearly defined areas…Make it obvious what’s clickable…Minimize noise.

If the page is well designed, when your vision clears you should be able to answer these questions without hesitation: What site is this? (Site ID)…What page am I on? (Page name)…What are the major sections of this site? (Sections)…What are my options at this level? (Local navigation)…Where am I in the scheme of things? (“You are here” indicators)…How can I search?

The point is, it’s not productive to ask questions like “Do most people like pulldown menus?” The right kind of question to ask is “Does this pulldown, with these items and this wording in this context on this page create a good experience for most people who are likely to use this site?” And there’s really only one way to answer that kind of question: testing. You have to use the collective skill, experience, creativity, and common sense of the team to build some version of the thing (even a crude version), then watch ordinary people carefully as they try to figure out what it is and how to use it. There’s no substitute for it.

Things that diminish goodwill…Hiding information that I want…Punishing me for not doing things your way…Asking me for information you don’t really need…Shucking and jiving me…Putting sizzle in my way…Your site looks amateurish.

Things that increase goodwill…Know the main things that people want to do on your site and make them obvious and easy…Tell me what I want to know…Save me steps wherever you can…Put effort into it…now what questions I’m likely to have, and answer them…provide me with creature comforts like printer-friendly pages…Make it easy to recover from errors…When in doubt, apologize.

On a closing note:

But the things I’m talking- about here are generally very bad practices, and you shouldn’t be doing any of them unless (a) you really know what you’re doing. (b) you have a darned good reason, and (c) you actually are going to test it when you’re done to make sure you’ve managed to make it work; you’re not just going to intend to test it.

A highly recommended read in the areas of usability and user experience.

 

On The Most Important Thing

I recently finished reading The Most Important Thing – Uncommon Sense for the Thoughtful Investor – by Howard Marks.

Below are key excerpts from the book that I found particularly insightful:

Few people have what it takes to be a great investors. Some can be taught, but not everyone… and those who can be taught can’t be taught everything. Valid approaches work some of the time but not all. And investing can’t be reduced to an algorithm and turned over to a computer. Even the best investors don’t get it right every time.

Because investing is at least as much art as it is science, it’s never my goal—in this book or elsewhere—to suggest it can be routinized. In fact. one of the things I most want to emphasize is how essential it is that one’s investment approach be intuitive and adaptive rather than be fixed and mechanistic.

Second-level thinking is deep, complex and convoluted. The second level thinker takes a great many things into account: What is the range of likely future outcomes? Which outcome do I think will occur? What’s the probability I’m right? What does the consensus think? How does my expectation differ from the consensus? How does the current price for the asset comport with the consensus view of the future, and with mine? Is the consensus psychology that’s incorporated in the price too bullish or bearish? What will happen to the asset’s price if the consensus turns out to be right, and what if I’m right?

Return alone—and especially return over short periods of time—says very little about the quality of investment decisions. Return has to be evaluated relative to the amount of risk taken to achieve it. And yet, risk cannot be measured. Certainly it cannot be gauged on the basis of what “everybody” says at a moment in time. Risk can be judged only by sophisticated, experienced second-level thinkers.

The road to long-term investment success runs through risk control more than through aggressiveness. Over a full career, most investors’ results will be determined more by how many losers they have, and how bad they are, than by the greatness of their winners. Skillful risk control is the mark of the superior investor.

The pendulum swing regarding attitudes toward risk is one of the most powerful of all. In fact, I’ve recently boiled down the main risks in investing to two: the risk of losing money and the risk of missing opportunity. It’s possible to largely eliminate either one, but not both. In an ideal world, investors would balance these two concerns. But from time to time, at the extremes of the pendulum’s swing, one or the other predominates.

What weapons might you marshal on your side to increase your odds? Here are the ones that work for Oaktree: a strongly held sense of intrinsic value. insistence on acting as you should when price diverges from value. • enough conversance with past cycles—gained at first from reading and talking to veteran investors, and later through experience—to know that market excesses are ultimately punished, not rewarded. a thorough understanding of the insidious effect of psychology on the investing process at market extremes. a promise to remember that when things seem “too good to be true,” they usually are. willingness to look wrong while the market goes from misvalued to more misvalued (as it invariably will), and • like-minded friends and colleagues from whom to gain support (and for you to support).

To boil it all down to just one sentence, I’d say the necessary condition for the existence of bargains is that perception has to be considerably worse than reality. That means the best opportunities are usually found among things most others won’t do. After all, if everyone feels good about something and is glad to join in, it won’t be bargain-priced.

What We Learn from a Crisis—or Ought To: Too much capital availability makes money flow to the wrong places…When capital goes where it shouldn’t, bad things happen…hen capital is in oversupply, investors compete for deals by accepting low returns and a slender margin for error…Widespread disregard for risk creates great risk…Inadequate due diligence leads to investment losses…In heady times, capital is devoted to innovative investments, many of which fail the test of time…Hidden fault lines running through portfolios can make the prices of seemingly unrelated assets move in tandem…Psychological and technical factors can swamp fundamentals…Markets change, invalidating models…Leverage magnifies outcomes but doesn’t add value…Excesses correct.

On a closing note:

Thus, it’s our goal to do as well as the market when it does well and better than the market when it does poorly. At first blush that may sound like a modest goal, but it’s really quite ambitious.

A must read in the area of investing.