Michael Mauboussin explains how human technological energy consumption dwarfs biological metabolic requirements.
Assertion Supported
Mauboussin: NBA outcomes rely on skill; hockey and baseball involve luck
“The NBA is the sport that's furthest from randomness, furthest from pure luck configuration, and sports like actually ice hockey and baseball are actually quite much closer to being random.”
Insight
Mauboussin: Senior executive decisions depend far more on luck than entry-level work
“Usually when you're a lower level worker, your job actually tends to have a higher skill component, right? So you're doing something, you're on an accounts receivable clerk and you're collecting accounts receivables, right? We can measure what we're doing. It'…”
Insight
Mauboussin: Network effects create increasing returns that defy economic mean reversion
“So we're taught in economics, microeconomics, and by the way, it's still largely true that, Returns on incremental capital tend to migrate toward the cost of capital, and typically the reason for that is competition, right? If you're generating, Shane, massive…”
Insight
Mauboussin: Overcome algorithm aversion by allowing minor human adjustments
“And it turns out, they said, there's a way to overcome this which I think makes enormous amounts of sense. And they said, the way you overcome this is you say to people, you're going to, your first answer is going to be what the algorithm tells you, right? Jus…”
Insight
Mauboussin: Only pay for franchise value in stable, low-churn industries
“You don't want to pay for you know, huge amount of competitive advantage.
In an industry where there's a ton of entry and exit, where market shares are very volatile, and by contrast, you might be much more willing to pay for franchise value for an industry w…”
Insight
Mauboussin: Parents have far less influence over kids than they assume
“The argument that Harris makes, it's quite compelling is that parents aren't quite as important as they think they are.”