#88 Derek Sivers: Innovation Versus Imitation

Musician, speaker, writer and entrepreneur, Derek Sivers chats about creating and running CD Baby, reading, mental models, living a meaningful life and that biggest mistake he’s ever made. -- Want even more? Members get early access, hand-edited transcripts, member-only episodes, and so much more. Learn more here: https://fs.blog/membership/ Every Sunday our Brain Food newsletter shares timeless insights and ideas that you can use at work and home. Add it to your inbox: https://fs.blog/newsletter/ Follow Shane on Twitter at: https://twitter.com/ShaneAParrish Learn more about your ad choices. Visit megaphone.fm/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Speaker 00

  I stopped going to the office. I started shutting off my phone until I realized that I was running from my problems instead of solving them. And I realized like this was kind of a do or die moment. Like, I need to fix this, or I'm toast.

• 0:30Shane Parrish?

  Hello and welcome. I'm Shane Parrish and you're listening to The Knowledge Project. This podcast and our website, fs.blog, help you sharpen your mind by mastering the best what other people have already figured out. If you enjoy this podcast, we've created a premium version that brings you even more. You'll get ad-free versions of the show, like you won't hear this, early access to episodes, transcripts, and so much more. If you want to learn more now, head on over to fs.blog/podcast or check out the show notes for a link. Today, I'm talking with Derek Sivers. Derek is my brother from another mother. Derek started off as a musician and circus clown, created CD Baby, which went on to become the largest online seller of independent music. Derek is the philosopher

• 1:14Shane Parrish?

  king and so thoughtful about his approach to everything, as you're going to see when you listen to this conversation. In this episode, we're going to talk about the benefits to being naive, to the ways of the world, how to decide what to work on and who to spend your life with, delegation, the value of execution over ideas, reading, mental models, Charlie Munger, making decisions, living a meaningful life, and the biggest mistake he's ever made. I hope you enjoy this conversation as much as I did. It's time to listen and learn.

• 1:50Shane Parrish?

  Derek, so great to finally get to talk to you.

• 1:53Speaker 00

  Shane, Shane, Shane, Shane, Shane. I am a super fan and super psyched to be here.

• 2:00Shane Parrish?

  There are only three podcasts I subscribe to.

• 2:05Speaker 00

  Conversations with Tyler, Seth Godin, Zekimbo, and yours.

• 2:10Shane Parrish?

  Oh, thank you. We've been trying to do this for like so long and we've been like, "Oh, just wait till the next time I'm over and then we'll do it in person. It'll be so much better." And then-

• 2:18Speaker 00

  Yeah, and I've been a paid member of Farnham Street forever and I've just been reading your stuff forever and it's great to finally have this conversation.

• 2:26Shane Parrish?

  I'm looking forward to it very much. And part of the research that I did for this, like, it's fascinating because I mean, I know of you, I read your stuff, and then going a little deeper behind the scenes is always fun. And I found this really interesting story. You worked as a librarian at the Warner Chapel Music and you quit. And that is like one of the most interesting stories I have ever seen with somebody quitting. Can you, can you share that with me?

• 2:53Speaker 00

  Sure. It was my first real job. It was at Warner Brothers in Midtown Manhattan, the music publishing division. It was an office with about 14 employees and I was 22 years old and I'd been working there for two years, just the bottom entry level position, running the music library. But I loved the job and I loved my colleagues. But after two years, I was ready to quit so I could be a full-time musician. Like, I was earning enough on the side as a musician that I could quit. So I found someone to replace me. It was an old friend that I knew would be perfect for the job. I knew that she would do it really well. She had the right temperament. She was in the right

• 3:35Speaker 00

  stage of her life. I knew that she'd be psyched about it and really give it her all, like I did. So I offered her the job and she said yes. And she moved to New York City to do it. She stayed at my place for a while. I trained her and I taught her everything. And after a week or two of that, that's when I told my boss that I have to quit now, but here's my replacement. She already knows everything and she's starting on Monday.

• 4:02Shane Parrish?

  That is just phenomenally mind-blowing that somebody that age, let alone any age, would sort of like think to do that.

• 4:10Speaker 00

  But I didn't know otherwise, right?

• 4:12Shane Parrish?

  Well, this is, this is sort of the, the interesting aspect to this for me. And because you started CD Baby after that. I think most people are generally familiar with that story, but the first time somebody quit, you were like, "Okay, who's your replacement?"

• 4:28Speaker 00

  Yeah, I still, I guess when I quit that job at Warner Brothers, my manager just kind of went, "Oh, okay." And I just walked out, you know, did, did, do, like, I just, you know, I basically said I quit and I walked out because everything was all taken care of. So yes, 12 years later, I had my own company. I was running CD Baby. And the first time, one of my employees came up to me and said, "Hey, man, I'm gonna have to quit." I said, "Oh, wow, okay, no problem. Who's your replacement?" And then he looked at me kind of confused. He said, "Uh, dude, I think that's your job." And then I was confused. I was like, "Wait, but you're the one quitting. Why is that my job now?" It just, yeah, we were both confused.

• 5:12Shane Parrish?

  There's definitely some benefits to being naive about the ways of the world. Can you, can you share some of those with me?

• 5:21Speaker 00

  First principles thinking, baby. You know it well. I honestly didn't even know it was called that until reading your site. And in fact, I still don't know that much about it, but I was really excited to buy your new books last night to learn more about it. So to me, the world feels unnecessarily ceremonial, right? Like, people imitate others without questioning it enough. But I don't want to learn their ways. I don't want to be like them. So instead, I just ignore it all and ask myself, "What's the real point?" Meaning like, what am I really trying to do here? What's the real point of all of this song and dance?

• 6:05Speaker 00

  So if it turns out that that traditional complexity was actually needed, well, then I'd rather find that out for myself. And notice that this approach is more creative, right? It's more inventing instead of imitating, which then means it's more fun. Let's pick a concrete example of software. Say I want a website to share my thoughts. So I look at WordPress. That's what everybody else does. Let's just look at WordPress. So I go to wordpress.org and I download the zip file and I look inside and it's like, "What the hell?" There are 884 PHP files in here. There's 602 JavaScript files in here. 19 database tables? What the hell?

• 6:50Speaker 00

  No way I'm going to learn all of that. I'm just, I just want to put five paragraphs of text on a webpage. Okay, so what's another option? Everybody seems to like medium.com. Let me look at medium.com. Pull up an article and like, what the hell? It was like 2.5 megs of downloads, like 33 CSS JavaScript and CSS files just to display an article? No way. That's like a thousand times bigger than it needs to be. Yo. And to me, like if I were to tell all of my readers, like, "Go to medium.com to read this five paragraphs of text I wrote," that would be like those companies, you know, if you order something small, like you buy a, like a USB stick and they mail it to you in a big box full of Styrofoam.

• 7:35Speaker 00

  It's like, no, no, no, that's, it's, don't, that's junk. You're giving me your garbage. It's like dumping my garbage on everyone. So I'll ask, what's the real point here? I just want to post an article on a webpage. I'll just open up a blank document. I'll just type out the article and I'll put paragraph tags around it. I'll put the title in an H1 header tag and I'll just put a couple of little HTML headers and footers, so it's a valid document, and then put it on a server. And, okay, so I need a homepage to list the articles, right? Okay, so we'll add some ul li list tags to the homepage, href to the article, and I'm done. So now I have two HTML files, no PHP, no JavaScript, no database, and the file size

• 8:18Speaker 00

  is like less than 1% of the typical medium.com or WordPress blog post, right? So in the case of WordPress, like, talk about complexity. In the case of WordPress, I understand that their complexity came from making generic software that pleases everyone from Disney to CBS, right? Like, there are companies with hundreds of employees needing to use WordPress all at the same time to manage their content. But I'm just me and I don't need that complexity. So I think that this is a nice metaphor for life. It doesn't have to be so complex.

• 8:56Speaker 00

  You can do just what's best for you, not need to adopt the legacy software that everyone else uses.

• 9:05Shane Parrish?

  That's really interesting. I mean, so two themes stuck out to me there, the complexity theme, but also the imitation versus innovation. If you don't imitate, I mean, one of the byproducts of that that I can see is that you're going slower. Like it probably took you longer to do that than it would have to download WordPress. And that goes back maybe to the complexity, right? Where they're intertwined in the sense of like, maybe we don't have to do as much as we think we have to do.

• 9:32Speaker 00

  Right. Rich Hickey is the inventor of the programming language called Clojure, C L O J U R E. And he has a brilliant talk that's up on YouTube. I think if you search like simple versus easy, Rich Hickey. He makes this beautiful comparison about how anybody can go to their computer and type like, he says, "Gem install hairball." Like you can type one command and install WordPress on your server. And he said, "Yes, that was easy, but you just installed a big steaming pile of garbage on your server that is massively complex."

• 10:17Speaker 00

  Because he defines complex as having the word root in the word "complect", which means to braid two things together. So he says, "Complexity is when you've got many things braided together." He said, "Yes, it was easy and fast for you to type Gem install hairball or install WordPress, but look what you've just done. You've now just installed thousands of complex files when, yes, it would be a little harder for you to just make your own HTML page from scratch. But notice that by definition, that's simpler. So simple is not always easy."

• 10:53Shane Parrish?

  I like that a lot. I'm just trying to figure out like in my head, where to go with that. Like I'm always, I think of Fernham Street, right? Like we're always trying to reduce. I'm trying to reduce the size that people download. I'm trying to take away the things that people don't need and just sort of like leave what's left. But that is not, not easy at all, right? Like that's hard.

• 11:13Speaker 00

  Yeah. You have to kind of nerd out on it. Like, I really nerd out on this stuff. In fact, this, my little rant that I just gave you about WordPress, for example, I said this to a friend of mine. And when I was done, she said, "Yeah, but so what?" Like, I said something like, "Do you know that you're gonna have to, that the average user is gonna download like 98 files just to read your four paragraphs of text? It's so unnecessary." And she goes, "So what?" Like, most people-

• 11:42Shane Parrish?

  Not many people think about that.

• 11:44Speaker 00

  Yeah. And she goes, "Almost nobody but you is actually looking at the code. For most people, they just click a link on their phone and they read the article. They don't care that behind the scenes, 98 files were downloading." I'm like, "Oh, yeah, I forget." Like, I'm just, I nerd out on this.

• 12:01Speaker 02

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• 12:30Shane Parrish?

  But you do. And that's what's important, though, right? Like, it's something that you care about innate to what, I mean, you care about other people's experience with your stuff, which is really rare these days. Like, that level of thought is really, like, and I was thinking, like, yesterday, as I was preparing for this, I was trying to order some wine for some friends of mine. And I was online, and I was trying to do this thing, and it was just so difficult. And I was like, trying to support local businesses, and I was trying to do something nice for my friends. And it's like 90 minutes later, right? And I'm still trying to order this wine. And it's like, copy paste the order number into your e-transfer that you send to like this address with this password.

• 13:15Shane Parrish?

  And it's like, holy cow. Like, I just, like, have you used the product that you are getting other people to use?

• 13:24Speaker 00

  You know, innovation versus imitation. For most things, I just find innovation more fun. And we're humans, fun matters. If I get more joy out of doing it this way, and it takes me six hours, but it's fun. Versus, yeah, I could just click this link and be done with it in 10 seconds, but it's less fun. I'm sorry, now I'm back to the making a website, not ordering wine. I wouldn't find it fun to order wine for 90 minutes. But yeah, if you find the process fun, like some people make their own furniture, right? You can visit somebody's house, it's like, I made that table, I made that chair. Of course, they could have gone to Ikea to buy one, but they chose to make it because they wanted to. So yeah, I take that approach to a lot of things in life.

• 14:09Shane Parrish?

  One of the other things I've noticed with imitating is that we often don't know what's next, right? So you consider hiring somebody with a skill, but a skill that they've just sort of like copied from somebody else, then when things change or they're different, they have no idea how to respond or how to deal with that.

• 14:28Speaker 00

  Right, well, isn't that your interest in the first principles thinking? It's like get to the root of what you know. Isn't it, you have this Feynman quote, opening volume one of your book, right?

• 14:41Shane Parrish?

  Yeah. I mean, we're the easiest people to fool, that much is clear. But I mean, I also think that we try to, like, not consciously, but we do try to fool other people. Like, if you think, maybe Warren Buffett's a good example, right? There's the 2008 housing crisis hits, and there's a whole bunch of people who imitate Warren Buffett, right? They talk like him, they go to McDonald's every morning, they eat their Egg McMuffin, and they say all the right things. And being able to distinguish between Warren Buffett and these people, if you couldn't see them, would be really hard. But then a crisis hits, and they're paralyzed.

• 15:24Shane Parrish?

  Like, they don't actually, they're not Buffett, right? And it's only through that crisis that it's revealed. So like, this whole thing in life is also like, how do you tell the difference between somebody who's imitating and somebody who's the real deal? Like, who actually understands?

• 15:39Speaker 00

  Oh, that's a great question.

• 15:41Shane Parrish?

  I was hoping you'd have an answer.

• 15:43Speaker 00

  No, let's just leave that as a beautiful rhetorical question for the audience.

• 15:48Shane Parrish?

  How do you, how do you decide what to work on? I mean, you have a unique framework. You're known for this hell yes or hell no sort of framework. Like, how did you come about that? Expand on that for me.

• 16:00Speaker 00

  Sure. Hell, yeah, or no.

• 16:04Speaker 00

  To be clear, this is just one tool in the toolbox, right? Like, I don't have that much to say about my monkey wrench. It's not meant to rule the world. It's just a monkey wrench. But here's the problem. We tend to say yes to whatever we can. We like to stay busy. So when faced with a decision to do something, we ask, can I do that? And if yes, then we often say yes. Maybe it's the fear of missing out. Maybe it's optimism. Maybe it's because time is like distance, where we can't see far away so clearly. So we mistakenly think that we'll have more free time in the future. But then today comes and now it's all close and vivid.

• 16:48Speaker 00

  Now you can see it clearly and ah, you're too busy. And so you curse your past self for saying yes to that thing that you have to do today. Three months ago, it was easy for you to say yes to this thing in the future when you have infinite time. So here's the solution is to raise the bar all the way to the top. Say no to almost everything and leave space in your life. Leave free time. But this is not relaxing. It's strategic because then when something great comes along, like something that makes you say, oh, hell yeah, that would be awesome.

• 17:26Speaker 00

  Then not only can you say yes to that, but now you have the time and energy to throw yourself into it completely. Like now you can give it your all. You know, the baseball metaphor, you can knock it out of the park. And I think strategically, it's better to do five big things with your life instead of 500 half-assed things, you know?

• 17:51Shane Parrish?

  I think that applies to a lot of things, right? It's better to, you know, be thoughtful and tweet less than, you know, just throw ideas out there.

• 17:59Speaker 00

  Right.

• 18:01Shane Parrish?

  How did you come up with this? Was this like an overnight thing or?

• 18:05Speaker 00

  Yeah, I totally, also, I have to say one thing, what you just said, like, it's better to tweet less instead of more. I'd still just say that it's just different. Like, some people do get their best creative ideas by just spewing out as much as possible. And maybe they spew out a thousand times more than most people. But if 1% of those ideas are better, then it's the net better result. So I don't want to say like, this is the best approach to take for all things. That's why I say it's just one little monkey wrench. I think it's a tool to use when you're overwhelmed and almost drowning in opportunities. And therefore you don't have the time to give your full attention to any of them.

• 18:48Speaker 00

  As for how it came about, it was just a situation where I was telling my musician friend, Amber Rubeath, about a decision I was trying to make about whether to go to this conference or not. And as I was explaining my thought process behind the decision, just thinking out loud, Amber Rubeath is actually the one that said, so basically you're not trying to decide between yes and no, you're deciding between fuck yeah and no. I just laughed and I loved it. And I, so I blogged about it the next day. I changed the word to hell to soften it a bit. And the idea caught on. That's all.

• 19:27Shane Parrish?

  And when you started implementing that, was it a gradual process? Or like, what was the feedback?

• 19:31Speaker 00

  Oh, no, it was instant. Like, as soon as like, sometimes it takes somebody else to say things that you might have already been feeling.

• 19:43Speaker 00

  Or thinking, but then somebody puts it into better words. That's we, we love when poets do that, you know? We love when books do that. When you read a, a little wise book, like, you know, an old one, like Think and Grow Rich or something, and you go, yeah, yeah, there we go. Like, I already felt this, but he just put it so well. That's the way I feel. And so, yeah, my friend Amber Rubeath, who's a songwriter, just kind of gave me that nicer, simpler mantra. If it's not a hell yes, then say no. And yeah, I just started using that for everything instantly. But to be fair, I was at a time in my life where that made sense. You know, I had just sold my company a year before and, and everybody was throwing everything my way and everybody wanted everything from me. So it was a good time to raise the bar all the way.

• 20:28Speaker 00

  But strategically, there are other times in your career when really the most strategic thing to do is to say yes to everything because it can be like lottery tickets, you know? Like if you've got nothing going on and somebody's offering you an infinite amount of lottery tickets for free, well then how many do you want? You know, I'll take all of them, please. So I don't think that hell yeah or no is something that should be applied to everything in life. You have to know when you're drowning in opportunity or starving for opportunity.

• 20:53Shane Parrish?

  Is that the only criteria by which you would sort of like gauge when to use this? Is like your opportunity cost?

• 21:00Speaker 00

  I think so, off the top of my head, yeah.

• 21:03Shane Parrish?

  When you were running CD Baby, you had to learn to delegate and, and you sort of like hinted in your book that we've run into this, like small businesses run into the ceiling. I think my friend Brent calls it the ceiling of brute force, right? Which is like, you, you get caught in this trap of like not delegating, doing everything yourself. Like, can you expand on that? And like, how did you learn this?

• 21:30Speaker 00

  So first, let's, okay, we'll define it. Every solo freelancer or person doing anything knows this feeling where you're so busy, you're doing everything yourself and you know you need help, but to find and to train someone would take more time than you have. And so instead, you just keep working harder and harder and harder until you break. How I learned it, I broke. I hit that breaking point. I did exactly that. And then I broke. My company was three years old. I had eight employees, but I was still doing everything else myself, right? Like, I was just working 7:00 AM to midnight, seven days a week. And a lot of things in the company still went through me.

• 22:16Speaker 00

  Meaning like every five minutes, one of my employees would have some kind of question for me. Like, what do we do about this? What do you do about that? And it was getting hard to get anything else done. Like, I felt like I would just show up to work and just answer my employees' questions all day long. And I hated it. I hit my breaking point. Like, I really like deep work. I really love focusing. You know, for work to turn into this constant state of every five-minute interruption just made it unbearable. I stopped going to the office. I started shutting off my phone until I realized that I was running from my problems instead of solving them. And I realized, like, this was kind of a do-or-die moment. Like, I need to fix this, or I'm toast.

• 23:00Speaker 00

  I just kind of had a long night of writing and thinking and reflecting on this. And I just realized, I need to make myself unnecessary to the running of my company. I need to do this. This is now super, super, super important. I'm at the breaking point. So yeah, the next day, I was like, changed man. I walked into work. As soon as I walked in the door, as usual, somebody asked me a question. Oh, Derek, you're here. Hey, what do we do about this? But this time, instead of answering their question, I called everyone together for a minute. I was like, okay, Ben, over here, Tracy, come. Okay. All right, everybody. Nikki just asked me what to do when a customer asks this. So I'm going to tell all of you my answer, but more importantly, I need to tell you the thought process behind it. Okay?

• 23:44Speaker 00

  Here's what I think we should do, and here's why. My rule of thumb is, if this, then that. You know, the big philosophy here is this. I want to make sure that everybody's happy, da-da-da-da-da. And I'll explain my philosophy. And then I asked around to make sure that they weren't just pretending to listen. And I made sure that everybody got it. And then I asked Malena over here to start a, writing this in a manual. I said, can you start a manual today? Like, let's make this like the company manual. And wrote, wrote down the answer to this one situation and the philosophy behind it. And then everyone got back to work. And of course, five minutes later, it happens again. Somebody asks me another question. So once again, I gathered everybody around and we repeated the process.

• 24:25Speaker 00

  So I just kept doing that until every last thing that was my job, even like, I think I was still doing the accounting or the putting stuff into QuickBooks or whatever myself. Even that, I said, okay, this is the last thing that is still mine. So Amber, I'm handing this off to you. This is yours now. And that was it. And suddenly I was completely not necessary. I started working entirely from home and there was a funny moment where I'd like call into the office after not being there for a week. Somebody would pick up the phone and say, CD baby. I'm like, hey, Dan, it's Derek. He's like, oh, hey, man. Like, how's everything going? He's like, good.

• 25:05Speaker 00

  You need anything? He's like, no, we're all set. Why are you calling? I was like, okay, well, I'm just home. If you need any help with anything, he's like, we're all set, man. Thanks though. And that was it. Like I was unnecessary. So at the time, um, my girlfriend had just moved down to LA to go to film school. So I was like, all right, I'm going to come join you. So I moved down to LA, which I thought was like a nice symbolic show that it's like, all right, guys, I'm, I'm no longer here. This is up to you. And then what was most interesting about this is that once it was done, like once I was really not necessary, I still was working these 12 hour days because I enjoyed it.

• 25:47Speaker 00

  But now I was only working on like the improvements and the innovations, like the new stuff. And to me, this was the fun stuff. Like this wasn't work. This is fun. This is creating. While I was away in California, my company grew from four million, sorry, sorry. No, it grew from one million to 20 million in four years. Like it grew from eight employees to 85 employees while I was away, like just basically without me. To me, that was the lesson, like the, the huge difference between being self-employed and being a business owner. There was, it was actually from the book, Rich Dad, Poor Dad by Robert Kiyosaki, that I kind of learned this idea of, um,

• 26:31Speaker 00

  If you know you're a true business owner, when you could leave your business for a year and come back a year later and find that it's doing better than when you left, that's when you're no longer self-employed, you're a business owner. And lastly, for anybody interested in this subject, like if you think if this is really speaking to you and this is something you need, the best book on this subject is called E-Myth Revisited by Michael Gerber. It says it way better than I could. I didn't discover that book until after I'd, like, years after I'd gone through the process, but when I read it, I was like, yeah, there we go. This is the masterpiece on this subject.

• 27:09Shane Parrish?

  Somebody putting into words what you feel, right?

• 27:12Speaker 00

  Exactly.

• 27:14Shane Parrish?

  That's a really interesting philosophy, right? Like, you're, you move, I like the idea that you move from self-employed to a business owner when you can walk away. Did you have any sort of, like, feelings of, I'm not needed in, like, a bad way? Like, oh?

• 27:30Speaker 00

  I think only that one week that I described, like, calling the office and being almost, like, a little sad that, uh, that they didn't need me for anything. But, I mean, that was, like, it was a fleeting moment, and then it was just joy after that. And then it would, like, blow people's mind that I'd be down in LA and meeting up with somebody, and especially somebody else who was still in that trap, right? They're like, oh, my God, I can't, can't handle everything. I'm so swamped. And they're like, dude, how do you do it? You're, like, sitting here at lunch with me. You've got a whole company going on up in Portland. I'm like, mhm. And I had to kind of tell them this tale. Like, I, it was hard work, but I delegated everything. And it just, I had to. I was really at that breaking point where I was ready to walk away if I didn't, so.

• 28:12Shane Parrish?

  You're such a thoughtful person. I'm curious as to, like, what you've learned about delegating that most of us would find surprising.

• 28:21Speaker 00

  You have to have a long-term perspective. You have to know that's like, all right, this is going to be harder. Yeah, it's going to be harder at first for the long-term gain, right? Like, if you realize that you're at this breaking point, your time is already full. You're already not sleeping enough. You're already working too much, and now you've decided that you need to hire and train somebody. Well, yeah, sorry, it's going to get even harder before it gets better. You're going to have to sleep even less until you've found and trained somebody to do it. But then you keep your eye on the... On the horizon instead of the obstacles. Yeah, look at the distance instead of today and know that it's going to pay off.

• 29:03Shane Parrish?

  How do you think about the pairing between ideas and execution?

• 29:10Speaker 00

  You know, I've got something to say about this, don't you?

• 29:13Shane Parrish?

  I do. I hope so.

• 29:17Speaker 00

  All right. So, yeah, actually, that was a funny storytelling segue because this came from living in Los Angeles, where the people I was around in LA were all speaking in future tense. And it was always about what they were going to do, the deals that are going to happen. Everything's, yeah, we're in talks with this guy at EMI and we're going to be working on this thing. Yeah, the pilot for this show, it looks like Fox is going to be picking up this pilot. Everything was always future tense. At first I was smiling and, oh, wow, that's great. But after a while, I realized like, oh, man, everybody's speaking in future tense about these things that are going to happen, and they never do. So what was all that hot air about? And I felt like wearing a T-shirt that says, tell me when

• 30:01Speaker 00

  it happens. Like, why are we talking about this? So it was during that time that a good friend of mine asked me to do a favor to him to hear out his friend's business idea. So people tell me lots of business ideas, but this, this one was a kind of a bit of a breaking point because this guy insisted on making me sign an NDA to hear his business idea. Like ordinarily, I would have just said, no, I'm not going to sign an NDA to hear an idea. But it's because of this situation where it was like a good friend of mine asked me if I could please as a favor to him. I was like, all right, all right. Here's your

• 30:41Speaker 00

  NDA. And then I drove across town, sitting at a restaurant, and finally, okay, nice to meet you. What's this big idea you want to tell me? And he said, okay, you ready? I said, yeah, I'm ready. And he goes, it's online dating with music.

• 31:04Speaker 00

  And I said, uh huh. And he goes, dude, online dating with music. I said, yeah, is there more to this idea? And he goes, dude, that's the idea, man. Online dating with music. I was like, wait, do you have like any implementation there? Like anything like, no. And he says, again, he's like, it's like he's telling me something profound. He's like, dude, no, online dating with music. And then he said, so here's what I'm thinking, dude. My friend, you know, our mutual friend tells me that you know how to program. So I'm figuring that, you know, you can make this thing. You do the programming to make this thing happen. I'm the idea guy, like you and I can go 50 50 on this, man. This thing's going to be huge, man. Online dating with music.

• 31:49Speaker 00

  I'm the idea guy. You're the execution guy. Or he said, you know, you're the programmer. And I was like, what? No, no, no, no, no. So I think, I said, all right, look, how do I explain this? It actually took me till later that night to think of how to, think of a nice metaphor that was easy to explain. What I wrote is that I think of ideas as a multiplier of execution. All right, so let's pretend that we have two columns of numbers here. So an awful idea, let's say that's a negative one. But a weak idea is a one. An okay idea is a 10 and a great idea is a 20. Okay. And now imagine another column over here. That's the execution column. No execution, doing nothing about it.

• 32:33Speaker 00

  Let's say that's a dollar. Weak execution, a thousand dollars. Okay, execution, a hundred thousand dollars. And great execution, let's say a million dollars. But the real point is that to make a business, you need to multiply those two columns. That the most amazing idea with no execution.

• 32:57Speaker 00

  It's just, you know, okay, let's take great idea worth 20, no execution, $1. Okay, that great idea was worth 20 bucks if you don't do anything about it. But on the other hand, you could have like an okay idea and okay execution and maybe make a million dollars. But if you have a great idea times great execution, then you can make $20 million or more, whatever. So that's just my rule of thumb way to explain this. Why I'm not really interested in hearing people's ideas. It's just not interesting without the execution.

• 33:29Shane Parrish?

  That's a brilliant insight. I had another way of coming at this exact same philosophy with different words, but it was adding too much value. So we used to work in boardrooms and people would pitch ideas for projects, sort of like Shark Tank. I mean, a lot of organizations have these like gates where, you know, the people who can allocate resources decide which projects to fund. And one of the things that I noticed was that the people making the decisions were always trying to make the ideas just a little bit better. So somebody would come to you with like, you know what I mean? Like they would come to you with a 95% idea and you would be like, oh my God, have you thought of this?

• 34:11Shane Parrish?

  This is going to move this from 95 to 95.5 and I am a genius.

• 34:16Speaker 00

  Right.

• 34:17Shane Parrish?

  And what I noticed was that the willingness of the person to own the idea, to be motivated, to execute went down. So the quality of the idea almost inarguably went up a little bit. How much is sort of like irrelevant, but the ability, the desire of the person on the other end to own the idea, to execute it went down. And it always went down by so much that the expected outcome from the project is always, almost always worse off.

• 34:52Speaker 00

  I love that you brought this up. I think this is a very underrated insight.

• 34:59Speaker 00

  Did you read, I think it was Marshall Goldsmith's book?

• 35:03Shane Parrish?

  Yeah, I think that's where I actually sort of like got the words around it. But you know, like, yeah, yeah. What got you here won't get you there.

• 35:11Speaker 00

  Yes, what got you here won't get you there. Yeah, I think the way he put it there, in America, the slang term is, you say, here's my, here's my two cents on that idea. You know, so I don't know if that would, it wouldn't make sense if you don't have that currency, no matter where you're listening. But yeah, in the American slang is, you know, here's my two cents. So Marshall Goldsmith in What Got You Here Won't Get You There said, yeah, don't add your two cents. And he gives a very vivid description of somebody coming to you with an idea. And he said, even if you have an idea for how it could be better, just zip your lips, smile, say, sounds great, go for it.

• 35:48Shane Parrish?

  Which is weird that it took me so long to hit on this myself, right? Because I mean, I was on the other end of that and so annoyed that these people, it's like, well, can't you see like how, how willing I am to own this and run with it? And I want to execute on this and like, you're telling me like, do this one little, you know, change the color of my button from blue to red. And I'm like, that is, you know, that just lowers my desire to sort of lead this project. And then when I got on the other seat, I was like, oh, now I can add my value, right? Like, and then it took me a while and then I stopped doing it. And I found this really amazing thing, like everything got better. People worked harder, they were more motivated, they owned things instead of just being somebody who executes what they're told.

• 36:31Shane Parrish?

  I mean, they actually like own the project as much as you can own a project in an organization. And everything was so much better. And even if I had ideas that were like, oh, here's a roadblock, I would let them go as far as they could right before they had to execute on that part. And then have a conversation with them and nine times out of 10, they figured it out. So I never even had to say anything because they figured it out because they were in the weeds, doing the work.

• 36:54Speaker 00

  I love that about books, that it's like, yeah, you and I both experience, I mean, everybody, probably, probably everybody listening to this goes, yeah, I've had this situation too. Like, my boss told me to make this one change. And it's like, eh, I'll do it with a grumble noun, let's do it. And I love when the authors of these books that just take the extra time to think something through deeper and take the extra time to put it into good words and take the extra time to edit it down to a way that makes it spread, makes it easy to remember and communicate. It's just such a valuable thing. I love it.

• 37:24Shane Parrish?

  Books, books, speaking of reading, books change your life at an early age. You read Awaken the Giant. How did, how did that change things for you?

• 37:32Speaker 00

  Ah, yeah, Tony Robbins, Awaken the Giant Within.

• 37:38Speaker 00

  God, that was, it's like asking someone what they learned from their religion. The stuff that Tony Robbins preached in that book is like so deeply ingrained in me that it just feels like reality.

• 37:52Shane Parrish?

  I'm embarrassed because I've never actually read it.

• 37:55Speaker 00

  Well, you know, it's funny, when I, Tim Ferriss and I met for the first time in 2007. And yeah, he told me what book made the biggest difference in his life. And I told him what book made the biggest difference in my life. And then the next day, we both went out and read each other's, you know, favorite. And both of us were like, huh, no, that does nothing for me. And so comparing those later, we realized that we both read this formative book for ourselves when we were teenagers. And so I think it's more about timing. Like, I don't know if Awaken the Giant Within is actually a great book, but I read it at a very, very formative time, when I was like 18 or 19 and just super ambitious and ready to take on the world.

• 38:36Speaker 00

  And then not only that, but someone who I cared about very much and was gorgeous, gave me this book and said, you need to read this. So of course, I read it with like maximum, maximum, what do you call, suggestibility? So, okay, let me try to think. The, the things in my philosophy that, that are like how that book changed my life, the philosophies that I got from that, I think the important ones are, you can change the way you feel about anything in an instant. So if your emotions aren't working in your favor, you can just change them. And related to that, events are neutral. Like, you can interpret events as good or bad.

• 39:18Speaker 00

  You can interpret a neutral event as crisis or as opportunity. And he makes this great example of New Orleans funerals, saying, like, even if you think of something that we think of just as objectively sad, like, somebody you care about has died. Well, look at how they do funerals in New Orleans. Like, they play the sad music as they're marching down the street with the coffin. And at a certain point,

• 39:45Speaker 00

  the drummer comes in and

• 39:48Speaker 00

  and it turns into a celebration as they dance and celebrate this person's life. He's a perfect example of how you can change your emotions in an instant. And you can feel about an event however you want to. You can celebrate somebody's death with joy. And the big idea then is you can choose whatever interpretation works for you. Whichever one you feel like taking on is the one you can feel. So, yeah, your emotions are completely under your control. And he gives specific techniques on how to do that. About questions. So he talks about asking yourself better questions and how the questions you ask yourself change everything. Like, when something goes wrong, you can ask yourself, what's great about this?

• 40:31Speaker 00

  And again, he gives this colorful example of some horrible thing that happened in his life, like a manager of his ran off with millions of dollars of his company, like, embezzled. He said, "Okay, I'm gonna follow my own lesson. What's great about this?" And he said, "Nothing. Nothing's great about this. This is horrible." He said, "Okay, keep asking, keep asking." Until he found something. He found a perspective on this neutral event that now empowered him instead of disempowered him. He talks about what you focus on changes everything. And again, the colorful story here. I can't believe I'm, like, remembering all the... God, how old am I now? I'm 50. I read this book when I was, like, 18. 32 years ago. I'm remembering all these vivid stories, right? So he talks about, you go to a party.

• 41:15Speaker 00

  Just imagine yourself going to any random party full of a bunch of people. And you take a bunch of photos at that party of people. And then later, you decide to show just the happy photos to somebody. And they would get the impression that that was a really fun, happy party. But you could also take just the photos that you caught candidly, where someone was looking sad, or alienated, or lost, and show somebody only those photos. And now it looks like a really sad, depressing party. It was actually the exact same party, but you've just chosen a different filter. And of course, metaphorically, we all do that in life. Like, you could just look at a newspaper today,

• 41:58Speaker 00

  and you can choose to get outraged by it, or you could choose to get depressed about it. You could choose to get excited about it.

• 42:05Shane Parrish?

  It's almost like a thermos, right? Like, it reinforces whatever you're bringing to it.

• 42:11Speaker 00

  Yes, Shane, it's exactly like a thermos.

• 42:13Shane Parrish?

  No, but I mean, like, your lens. If you put something hot in, it's gonna stay hot. And if you put something cold in, it's gonna stay cold.

• 42:20Speaker 00

  Yeah, I'm imagining some kind of like sci-fi thermos, where you could go like, and twist something, and it would like instantly turn from hot to cold. If you, anyway, um, let's do one more. So I think I got my idea of long-term focus from him. Where the big idea is like, there's no such thing as failure until you give up. Because until that point, you're still just getting feedback. Like, no, you could have just tried 100 things. You know, the old classic example of Edison with the light bulb filament. You're just getting feedback, like, okay, that didn't work. Hmm, what else? He talks about how people overestimate what they can do in one year, but underestimate what they can do in 10 years. And yeah, focus on where you want to go. Don't focus on what you fear.

• 43:05Speaker 00

  And he had, he had a little story about how he learned race car driving. And he was like suddenly getting terrified, and he found himself looking at the wall like, oh no, I'm going to hit that wall. And he said, "My trainer literally grabbed my head and turned my head towards the road where I wanted to be going." And he said, "That's a great metaphor for it's like, look where you want to go, not at what you fear." God, yeah, sorry, I guess I have a lot of these. These are just like, these are so ingrained in me. Like, they all just feel like, well, yeah, duh, that's life, that's reality. But the truth is, I, I got all of these things from that book.

• 43:39Shane Parrish?

  That's so powerful. What, what makes for good writing for you? Have you read it again, actually, since then?

• 43:46Speaker 00

  Okay, so I think I read it when I was 18 and like again when I was 20 and again when I was 22 and maybe one more time when I was like 25. But that was like a paper book, which then I've given away. And so I think just like a year ago, I tried getting it on Kindle. And I looked through it again and it was just, it was like somebody telling you that water is wet and the sky is blue. It's like, yeah, yeah, yeah, yeah. I was like, okay, this stuff is just too ingrained in me. I just, I don't, sorry, I can't read it again. It's just, it's all just obvious.

• 44:16Shane Parrish?

  How do you filter what you read now?

• 44:18Speaker 00

  It's usually either to solve a current problem in my life. Like say if I'm, I'm having issues with parenting or having issues with keeping up with my habits or, or even like a knowledge problem, like I don't know who those old philosophers are. People keep talking about Nietzsche. I don't know anything about Nietzsche. So I'll like go read a book to solve that problem. I often read just because I think that this book's insights could help my life right now, even if it's not a concrete problem. But like whenever I read anything by Mark Manson or Steven Pressfield, I always come away feeling like, yeah, that's a really cool insight. Like it wasn't to solve a concrete problem.

• 45:02Speaker 00

  I just, I like their philosophies. And then often it's just for curiosity. Like I just two days ago, finished a big, long course on linguistics. And that was a blast. John McWhorter, The History of Language was fascinating. I love reading about geography. I love reading about the culture of different countries. Yeah, I just read a book a few months ago about the culture of Finland and just found it fascinating. So yeah, how do I filter though? Knowing that what I'm looking for is what I just described. Then how do I choose exactly what book? I think I probably rely too much on Amazon reviews or just if there's a wise person that I like. That I'm a fan of them and they say that, you know, this book is a great book, then I'll go read that book.

• 45:47Shane Parrish?

  Do you read it cover to cover? Like when you pick up a book, are you searching for something that you wanted to learn? Like, what's your process for picking up a book and then reading it?

• 45:57Speaker 00

  Yeah, I don't skim. I know that some, I know a lot of people skim, but I, no, I try, whenever it's like reading time, I try to slow down my internal clock. Just, okay, focus on just this. Like, this is a different pace than being online and clicking and surfing and clicking. Like, this is, so yeah, I try to read just start to finish. Unless a book really sucks, unless it's like I'm a third of the way through, I'm like, yeah, I don't like any of this, then I'll trash it. But for the most part, I hear them out. I go start to finish. And most importantly, which we can really nerd out on if you want, is I underline every surprising or interesting idea

• 46:38Speaker 00

  that I want to think more about later. And so then when I'm done, I take all of those underlying ideas and I put them into a text file. I usually just kind of put them into my own words. I remove their unnecessary words. I think I'm more of a harsh editor than most people. So yeah, I chop every unnecessary word. So now I have the core of this idea in eight words. And then in that text file, I separate each idea with two line breaks. So, you know, idea is on one line or maybe two or three lines, but whatever it is, I hit enter twice to leave two line breaks before the next idea so that later I can write a little Ruby programming script to parse them when needed.

• 47:18Speaker 00

  Then later, yeah, I reflect on these ideas. That's why I saved them. I'm never trying to summarize the book. I actually don't care about the book. I just want the interesting ideas inside so that I can reflect on them later and ideally, you know, add more to them myself.

• 47:35Shane Parrish?

  Talk to me about the reflecting on them later part. I mean, a lot of us highlight a whole bunch of things in a book. We're like, oh, that was amazing. This is great. And then we're next book. Like, we never, we never sort of like go back and think about or digest or do the mental work of sort of like making those ideas our own.

• 47:53Speaker 00

  Right. Okay. So I have a new approach to this. So I used to just take this one big text file with all my notes from one book. And I would just keep those text files on my phone. And if I was just sitting on the bus to get somewhere, I would just. Look at my folder of text files and I would just open one up and just kind of reread it and just kind of stop and look out the window and think about something interesting. But then I found that, again, I don't really care about the book. I like the ideas inside. So here's a project that I've been working on for a long time. I've just been dabbling with this for a long time. I'm tagging every single one of those ideas from every book I've read since 2007. I'm tagging them with keywords and loading them into a database.

• 48:36Speaker 00

  So now, if I'm thinking on a subject like commitment, or regret, or hedonism, or memory, or pain, then I can just search for my notes around that subject. And I can pull up like 173 ideas that came from 28 different books instantly, but just browse these ideas. Because again, I don't care what books they came from anymore. I just want the ideas. So I've separated them from the book and I'm keeping them as their own little atoms to play with. But then, yeah, the main thing I do now is to pull up all my notes on a subject like this, like say hedonism. And then with all of these notes in front of me, I open up

• 49:21Speaker 00

  my own text document to start from scratch with my own thoughts on this. So now it's almost like I'm in a room of some really smart people talking around this subject. And it's inspiring, really interesting thoughts of my own that are often like a reaction. It's like I'm joining the conversation of these thinkers. I want to see what I can add. That's honestly what my next book, called How to Live, the book that I'm writing right now, this is kind of what the book ended up being. It's, or it's grown out of this process of surrounding myself with a bunch of thoughts around one subject and then writing my own thoughts around that subject as a kind of a reaction to the others

• 50:05Speaker 00

  around me. It's metaphorically, it almost feels like if I was a painter and I was allowed to bring a blank canvas into a great museum, and I could sit in a room of my favorite paintings ever and paint my own, which is not imitating theirs, but it's influenced by. I'm kind of building on that, inspired by that. Does that make sense?

• 50:28Shane Parrish?

  I think so. I mean, what I One of the geeking out part of me is like, okay, so you have this private database and you tag things so that you can easily search it. And when you're thinking on a topic, you look at it. And through that regular digestion and hitting on those things, you make them your own. And then you write about them?

• 50:51Speaker 00

  Yes, so it's about internalizing it, not memorizing it. I used to, so I'm into Unki and flashcards and spaced repetition. So I used to think, huh, I wonder if I should somehow feed all of these ideas from all of these books into spaced repetition so I can memorize them. And something never felt quite right about that. It took me a while to realize what it was is that, no, I don't want to memorize these people's thoughts. I just want them to lift up and inspire my own thoughts, which I just, I really need to internalize these things. And to me, that only comes from reflection and giving it time. So yes, like you said at the beginning, when you asked it, I often would read a book, go, wow, that was really good. And then on to the next book.

• 51:36Speaker 00

  But as time went on, I thought, wow, I'm not, I'm not remembering these books unless I really stop to reflect. I feel like the reflection time is when you really learn. The moment when you read somebody else's idea, that's a wow moment. But you don't really learn it until you've put aside the time to reflect on it.

• 51:55Speaker 02

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• 52:24Shane Parrish?

  And is that where you come up with your directives?

• 52:27Speaker 00

  Oh, the directives.

• 52:31Speaker 00

  The directives, I think, came from, sorry, everybody listening. Shane's talking about

• 52:41Shane Parrish?

  Oh, sorry.

• 52:42Speaker 00

  Something I've, something that I've blogged about a few times, which is this idea of taking,

• 52:49Speaker 00

  taking an idea and turning it into a directive, which is meaning telling you to do an action. If you go to my site, if you go to sivers.org, or if you read anything I've written, or even the TED Talks I've put out into the world, or whatever, you might notice that I like being very succinct. Maybe not in conversation with Shane right now, but when I put something out into writing, I like being very, very, very succinct. I like chopping out every possible word, leaving only the words that need to be there. So I noticed that as I was learning about certain things, I felt like most books use way too many words. And I came to this

• 53:32Speaker 00

  idea that probably the most succinct way to communicate an idea is to focus on the action itself. Like if you command the action, then the action, like a seed, I think there's like a nature metaphor in here somewhere, that the, the action has the seed of the idea in it, that the action carries the idea along with it. You can talk for 400 pages about calories and this kind of fat versus that kind of fat and protein versus that, but instead you could just tell somebody, eat this, don't eat that. Like those actions would carry that 200 pages of information in the actions. And so therefore, the succinct

• 54:16Speaker 00

  directives, the actions, please my minimalist ruthless editor sensibilities more.

• 54:23Shane Parrish?

  I want to talk about directives a little bit more. And what's interesting to me, when I think about directives, is

• 54:31Shane Parrish?

  They're great if you can get them from other people, but they're different. Again, going back to this imitation versus like knowing and understanding. So you're coming up with these directives, like you're doing the work, the mental work. Like you have an experience, you're reflecting on it. That experience can be yours, or it can be from reading a book or somebody else's story. But you're doing the mental work of reflecting, integrating, digesting. And then you're coming up with these directives. Like so much of life today is like, just give me the directive and we haven't done the work.

• 55:04Speaker 00

  In spaced repetition, like Unki SRAS flashcards, a lot of people say, yeah, just give me somebody's deck. So I can learn JavaScript or whatever. I'm like, no, no, no, no, no, no. Like the whole point of flashcards and memorization is like, after you've learned this thing, you make the flashcard to help your future self remember it. Like the flashcard is not the moment of learning. So yeah, I feel the same way about the directives, although there are different subjects in life where I want to know more about this or not. So the way, actually, the example that I gave about, you know, this kind of fat versus that kind of fat and these calories versus those calories, I don't care about that subject so much.

• 55:49Speaker 00

  So I would not want to read a 400-page book about nutrition and diet. That's an example where I just want somebody to tell me what to do. Tell me, you know, eat this, don't eat that. That's all. I don't need the details. And so because I feel that way about nutrition, I can imagine somebody else feeling that way about, say, technology or stoicism or language learning or whatever it may be. Like, no, I don't want to talk around this subject for 300 pages. Just can you tell me what to do in one page? And then I'll just do that. Like, and I think this comes down to trust. If you trust the source, then you don't need all of the supporting evidence.

• 56:33Shane Parrish?

  I would add one caveat to that, which is I think, and the environment's not changing rapidly. Right? So the source came up with these in a certain environment. And you just have to make sure that that environment still exists. Cause if it changes rapidly, then the source is likely to be right, but right at the time or right for that particular environment. And then you won't know what happened.

• 56:56Speaker 00

  Why would you be thinking of that in April 2020, Shane?

• 57:01Shane Parrish?

  Let's do a deep dive on directives. Why don't you give me some of your categories and like go through some? I don't want to put you on the spot, but.

• 57:09Speaker 00

  Oh, sure. I don't mind.

• 57:09Shane Parrish?

  Like how to be anti-fragile or thriving in an unknowable world.

• 57:16Speaker 00

  This is like, this is like you're a talk show host and you say, hey, why don't you perform one of your songs for us? Sure, I'll be glad to do that. No, really, I don't mind. Um, all right, hold on. Let me pull up. We all like the anti-fragile concept.

• 57:32Shane Parrish?

  It's particularly apt right now, too.

• 57:35Speaker 00

  Exactly. How to thrive in an unknowable future. And again, to give context, this is where I've read a bunch of books on this subject. I took a bunch of these book notes, lots of paragraphs, and kind of condensed them down into these, what is it, six directives. One, prepare for the worst. Since you have no idea what the future may bring, be open to the best and the worst. But the best case scenario doesn't need your preparation or your attention. So mentally and financially, prepare for the worst case instead. Like insurance, don't obsess on it, just prepare, then carry on appreciating the good times. How to thrive in an unknowable future. Number two, expect disaster.

• 58:21Speaker 00

  Every biography of a successful person has that line, and then things took a turn for the worse. So fully expect that disaster to come to you at any time. Completely assume it's going to happen and make your plans accordingly. Not just money, but health, family, freedom, expect all of it to disappear. Besides, you appreciate things more when you know that this may be your last time seeing them. Three, own as little as possible. Depend on even less. The less you own, the less you're affected by disaster. Four, and this is straight out of Anti-Fragile. Choose opportunity, not loyalty.

• 59:02Speaker 00

  Have no loyalty to location, corporation, or your past public statements. Be an absolute opportunist, doing whatever's best for the future in the current situation, unbound by the past. Have loyalty for only your most important human relationships. Number five, choose the plan with the most options. I got that one from Kevin Kelly. The best plan is the one that lets you change your plans. For example, renting a house is buying the option to move at any time without losing money in a changing market. And number six, avoid planning. For maximum options, don't plan at all. Since you have no idea how the situation or your mood may change in the future, wait

• 59:47Speaker 00

  until the last possible moment to make each decision. Funny thing is, I posted that in 2016 on my site, and I just, like, last month, in March 2020, in the middle of quarantine and all that, like, went back and read it, just kind of smiling and nodding, like, yep, prepare for the worst, expect disaster, yep.

• 1:00:10Shane Parrish?

  Dude, this is like gold. I just want to sit here and listen to you, like, keep going on this stuff. What are the other, what are the ones that stand?

• 1:00:17Speaker 00

  The Munger, we gotta do the Munger one. You and I are both, hey, hey, actually Shane, have you heard of Charlie Munger? I think you would.

• 1:00:23Shane Parrish?

  Vaguely, I mean, I think I remember coming across him in a headline somewhere.

• 1:00:29Speaker 00

  So you and I are both Munger fans, so I'll just do this one more that is totally a, not a ripoff, but Charlie Munger's idea, I think it was in Poor Charlie's Almanack, one of his speeches to one of the schools where he did the reversing it, like-

• 1:00:48Shane Parrish?

  Prescriptions for misery, guaranteed prescriptions for misery.

• 1:00:51Speaker 00

  How did you just happen to know that? Guaranteed, yeah, thank you, that was it. And I just, I loved that format. And so, yeah, I tried my own version of that, which was, how to stop being rich and happy. Number one, prioritize lifestyle design.

• 1:01:12Speaker 00

  You've made it, so it's all about you now. Make your dreams come true. Shape your surroundings to please your every desire. Make your immediate gratification the most important thing. How to Stop Being Rich and Happy, Number Two. Chase That Comparison Moment. This is from the book, Stumbling on Happiness. You have the old thing. You want the new thing. Yes, do it. Be happy for a week. Ignore the fact that the happiness only comes from the moment of comparison between the old and new. Once you've had your new thing for a week and it becomes the new norm, just go seek happiness from another new thing. Number Three. Buy, Not Rent.

• 1:01:55Speaker 00

  Why rent a house, a castle, a boat, or a car when you can buy? It's not about the thing. It's about identity. This shows who you are now. Number Four. Internalize Your New Status. You worked hard to get here. Celebrate. Relax. Admit that you're in a different class of people now with different needs. Understand, there is no going back. Number Five. How to Stop Being Rich and Happy. Be a Connoisseur. Learn what others say is the finest. Insist on only the finest. You will now be unhappy with anything but the finest.

• 1:02:40Speaker 00

  Number Six. Get to Know Your Possessions. Now that you own the best, it's time to focus on what you've got. Learn all about the features of your new possessions. Spend more time getting your surround sound and your heated floor just right. Work out the whole solar panel charging of your Tesla car. This is important. And lastly, Number Seven. How to Stop Being Rich and Happy. Acclimate to Comfort. Eliminate every discomfort from your life. Blame others when the world seems hard and is not living up to your standards.

• 1:03:16Shane Parrish?

  That's so beautiful and so true.

• 1:03:20Speaker 00

  I just, I really like this format of making things as succinct and as actionable as possible. So I really need to turn all of these into a book. I have just like a rough draft of a book called Do This. That would just be a book full of these directives.

• 1:03:39Shane Parrish?

  I'd love that idea. I hope you do that. I think the world needs that.

• 1:03:43Speaker 00

  I hope people email me and tell me to do that and keep annoying me until I do it.

• 1:03:48Shane Parrish?

  I will. I'll just, you know what I'll do is I'll just, because I can program, I'll just create a script to email you every five minutes.

• 1:03:59Shane Parrish?

  I'm curious like how you go about making important decisions.

• 1:04:04Speaker 00

  Well, I don't aim for reality. And I'm actually really interested to read your book because right there, the first, like I said, I just started reading your new volume one last night, but the first thing I underlined in it was the thing about blind spots. It was like right there in the first few pages and you said about blind spots. And I think, hmm, okay. This is actually a new idea to me because I'm not used to aiming for reality. In fact, I used to have a record label called Artificial Records and my slogan was, quote, "Why settle for reality?" I think the Tony Robbins stuff I said earlier was a bigger influence on me than searching for reality. Because you heard maybe the common thread

• 1:04:46Speaker 00

  in there is it's about looking for a perspective that helps me, right? Like, I don't remember what book I got this from, but credit to this goes to some book out there that says, it gave this idea that you, imagine that you need to walk across an elevated plank, but you're too scared, so you're not doing it. So does it help you to think that the plank is lying on the ground? Right? Like if it was just lying in your backyard, you'd walk across that plank, no problem. You wouldn't fall off of it. You wouldn't be scared of falling off of it because why would you fall off of the plank? Just there, you walk across it. What's the big deal? So does imagining that that elevated plank is just lying in

• 1:05:29Speaker 00

  the grass in your yard help you? Yes or no? Does it help you to believe that there's a safety net below you? Yes or no? Does that make you walk across it? Does it help you to picture that on the other side of that plank is a burning building and your child is inside? And also, there's a hungry tiger behind you, chasing you, and is going to kill you in three seconds if you don't walk across that plank. Now, does that get you to walk across the plank? Okay, well, then, that's the winning perspective. Whatever makes you take the necessary actions is the perspective that helps you. I'm never aiming for reality. I'm trying to make decisions usually based on finding the perspective

• 1:06:13Speaker 00

  that helps me take actions. Like, I'm not even aiming for results or effectiveness. The real answer is, I think I'm usually making life decisions because they're fun. Granted, I'm not an investor. I'm not making investment decisions, right? I usually, I choose things more based on the compass of fun and adventure. Right? Like, having a different perspective can make something more of an adventure. If you think of the stereotype, the old classic stereotype of the explorer with the pith hat, right? Going off into darkest Peru to places that no one has explored. Well, I like doing that with perspectives.

• 1:06:56Speaker 00

  I often think of any random thing, and I think, well, what approach could be fun? Or could be exciting? Or could be new and uncharted? Then that's creative, right? Like, I don't even care very much if this fails, because my only goal was to just try it out. Like, let's see what happens if I take this approach. I think, sometimes, you know, just like you asked me about Awaken the Giant Within, and I have to try hard to imagine what of me came from that book. I think it's actually the same thing with music. We haven't really talked about music itself, but... I think I'm so damn influenced by the fact that I was a full-time musician

• 1:07:40Speaker 00

  for 15 formative years, like from the age of 14 until 29. All I wanted from life was to be a successful musician. And so I think now I still approach life like I approached music with lots of, you know, let's see what happens if I do this. Let's see what happens if I run my voice through this guitar pedal. Let's see what happens if I use this flute like a drum. And I think that music thinkers were probably my first favorite thinkers, like Brian Eno, for example, or John Cage. Here, I have a, I have at all times handy some of my favorite Brian Eno quotes. I love these quotes so much, not just Brian Eno's,

• 1:08:25Speaker 00

  but like from a collection of musicians that, whose ideas inspire me. I ended up making a little website called musicthoughts.com, where I put all of these inspiring quotes about music. Here are four from Brian Eno, just to give a concrete example. "Art doesn't end at the edge of the canvas. Its position in the world, both physically and culturally, can completely change the meaning of the art." Okay, that's one idea. "Instead of writing songs, let's make a hypothetical film, and then make a soundtrack for that film." That's an idea. Here's a favorite one. "Cut a vital connection. Find what's holding everything together, then eliminate that." And last one.

• 1:09:09Speaker 00

  "When you listen to Miles Davis, how much of what you hear is music? And how much is the context? Like, all the things you know about Miles Davis." So when you're listening to music, you're actually, quote unquote, "hearing" all the stuff around it, too. Okay, so I've got like a thousand of these on this website called musicthoughts.com. And I think I forget that I'm still taking like this experimental musical approach to life. So when you ask how I make decisions, I think it's very similar to like Brian Eno making musical decisions in the recording studio. Like, hmm, this approach sounds fun. Hmm, let's try this.

• 1:09:51Shane Parrish?

  I like that a lot. I want to go back to something you said at the beginning of this, which was whatever compels you to take action. But how do you decide what actions to take in this situation?

• 1:10:04Speaker 00

  Hmm, I don't know. I think that's just one of those. Every situation's different. I think you just, sometimes you have a concrete goal, right? Like, I need to exercise more.

• 1:10:16Shane Parrish?

  Right.

• 1:10:17Speaker 00

  What philosophy, what mindset?

• 1:10:18Shane Parrish?

  What's gonna help me do that?

• 1:10:20Speaker 00

  Will help me. Right. But other times, you just don't really know what to do. All right, I'm gonna give a concrete example from my life. This is kind of personal, but after I sold CD Baby, I felt really lost and lethargic for a year or two. I didn't know what to do with myself. I felt like I had peaked. And I dabbled in this and dabbled in that and thought, maybe I'll do this, maybe I'll do that. But then there was one moment on one airplane where I was just reading something, and what it was doesn't matter because it was just a random story about Benjamin Disraeli or something. But there was a sentence in there that made me go, oh, my God, I know what I want to do. And

• 1:11:06Speaker 00

  it was just talking about how Benjamin Disraeli never shied away from the spotlight, that he courted attention and took on the extra responsibilities of courting attention. And that tiny idea, to me, just like, it just set off a bunch of other things in my head. Like, oh, my God, I've been running from responsibility because I didn't like having 85 employees at CD Baby. And so I've been wanting to avoid all responsibility for the rest of my life. But by doing that, I'm turning invisible. I was considering legally changing my name. But oh, my God, if I step into the spotlight... More instead of less and just take on that little bit of responsibility, that extra responsibility, then, oh my God, I know what I want to do now. I don't want to be this like ex-music store guy.

• 1:11:51Speaker 00

  I want to be like a writer, speaker, thinker kind of guy. I want the TED conference to invite me to speak and I want people to want to hear my thoughts on things, like to buy books of my thoughts. Like, at the time, I was just a guy running a music store and this was a totally new idea. But Shane, it was like the first thing in a year and a half that made me like bolt up out of my seat and like instantly I was like, oh my God, yes, yes, yes, yes. I know exactly what I want to do. And it just, it turned into action. Like when the plane landed, I just bolted into action and made things happen for the first time in a year and a half. So it's like, I didn't know what was the right action to take and I didn't even try to ask myself, is this the right action to take?

• 1:12:31Speaker 00

  I think it's just, you can tell when something feels like the right action to take.

• 1:12:37Shane Parrish?

  That's really interesting because when you said that, what, what I sort of like internalized a little bit was like, it's not the tactic, it's the direction. So you knew where you wanted to go, not necessarily how to get there. I mean, you've lived it.

• 1:12:50Speaker 00

  No, I didn't. No, sorry, but like until that moment, my plan was to legally change my name and disappear into Europe and be an open source programmer.

• 1:13:00Shane Parrish?

  Yeah, yeah, but I mean, like, but then you, you changed. You wanted to be this thinker. You wanted to do this. So you, you came up with this, this direction that you wanted to get to. And then it was a matter of like establishing those tactics or you knew.

• 1:13:12Speaker 00

  Oh yeah. And then making a plan kind of relatively is the easy part. Once you know where you're going, once you like pick a place on the map and say, I want to go there. It's like, all right, well, just that's northeast of here. Let's head northeast and of course you're going to adjust along the way to continue to use our explorer with the pith hat metaphor.

• 1:13:31Shane Parrish?

  I, I don't know if a lot of people think that way. I mean, I, I don't think that's maybe as common as, as we're assuming. I think a lot of people are just like, what's best for me in this particular moment without necessarily a direction.

• 1:13:43Speaker 00

  I'm no expert at this, but to me that would sound like.

• 1:13:48Speaker 00

  That's how I felt in my year and a half of muddling around.

• 1:13:51Shane Parrish?

  Right. Oh, I think we all feel that way at various points in our life, right? Switching gears a little bit, what's the biggest mistake you've ever made?

• 1:14:01Shane Parrish?

  And how did you recover from that?

• 1:14:02Speaker 00

  Ah, did I?

• 1:14:05Shane Parrish?

  Did I?

• 1:14:07Speaker 00

  The biggest mistake is the only one that I can say like really objectively, yeah, that was a big, huge mistake, was carelessly wrecking what could have been a great romantic relationship. So, yeah, sorry, Ray. But let's talk about my second biggest mistake. Because that was financial, so it feels like it would fit in better here.

• 1:14:34Shane Parrish?

  I want to dive into this relationship one, if you're okay talking about it. What happened?

• 1:14:40Shane Parrish?

  If you're not, we'll just skip it over.

• 1:14:41Speaker 00

  There's not really, I mean, I don't mind. I've never talked about it publicly, but yeah, I'm going to change her name and call her Ray. And yeah, she was amazing and wonderful and we were totally in love. And then in some like split weird, split second weird moment when we were hanging out in Singapore, just I got like some bug or something in my head that like bothered me about something she said. And I just kept it to myself instead of bringing it up. And then while she was asleep that night, I called a friend of mine to say, yeah, what should I do? And my friend was like, just run, run the other way. This is clearly not working. Just get out of there.

• 1:15:25Speaker 00

  Just tell her sorry and get on the next plane out. And, and I went, yeah, I guess you're right. And, you know, giving me a whole bunch of, giving me that perspective, speaking of, you know, different perspectives on any given thing. My friend gave me that perspective in that moment. And so when she, when Ray woke up in the morning, I said, sorry, I'm gonna get out of here on a plane today. We're done. And she was devastated and, and I coldly left. And so a couple epilogues to this that actually make the story is that A couple of months later, that same friend that gave me advice on what to do in that moment was doing some reading about relationships and going to see a counselor and learning some stuff and said, hey, guess what I found out?

• 1:16:10Speaker 00

  I'm what they call love avoidant. And just tell me like what that means. And I was like, oh, my God, I have those tendencies too. And I thought, man, I really called the wrong person that night. Like, I was in such an, in a suggestible, influencible state of mind that if a different friend would have told me, like, dude, go back in there, that you love her and she loves you, do not let this go. Relationships have like times that you need to work through. Do not get on that plane. Get, you know, get, stay with her. I would have said, yeah, you're right, you know? But instead, I randomly called the other friend. In fact, I actually tried to call three or four different friends and the one that I talked to was just the one that happened to answer the phone.

• 1:16:54Shane Parrish?

  Just by chance, yeah.

• 1:16:55Speaker 00

  Just by chance. And so I destroyed a great relationship. And so another epilogue is that sometimes when that happens, you never talk to the person ever again and you never get to apologize, you never find out what they were thinking. But in this case, I, I did talk to Ray again many times. And I think like a whole year later, I told her the full story of what happened that night. How it was just that one thing she said on the subway that bothered me, but I kept it to myself and I didn't talk with her about it because I didn't know how. And she said the sweetest possible thing. She said, like, you know, you and I were always so good at talking on the phone. Because this is actually, you know, we're doing this over the phone. And she said, I wish you would have just like gone to the next hotel room or like called

• 1:17:38Speaker 00

  me from the lobby and we could have talked about it over the phone. I went, oh, God, that is such a beautiful thing to say. And then when I told her the whole story of what happened, she said, yeah, I'll admit, I don't think I've ever cried so hard in my life. She said, I don't, I've never been that in love ever in my life. I've never been so hurt in my life. That was really devastating. But then we continued to talk about it. And the funny thing is, she's probably my best friend today. Like, we talk all the time, but relationship wise, it's like, it's too late. Like, it's, it killed that thing. So, yeah, that's probably my single biggest mistake. Wow, I just told that story to Shane.

• 1:18:23Speaker 00

  On the podcast. Hello, world.

• 1:18:25Shane Parrish?

  What does love avoidant mean?

• 1:18:27Speaker 00

  I don't know exactly. Here, let me Google that for you. I don't know. I haven't dove into that. I just took it as a, I think it taught me to, to take these things more seriously, to not be lighthearted. There's a beautiful line in the movie Before Sunset with Ethan Hawke and Julie Delby. I believe that's the third one. They made three of them. So the first one was Before Sunrise, when they were in their twenties. Then they made Before Midnight, I believe, in their thirties. And then 10 years later, they made Before Sunset, I think. And I think that's the correct order of the titles. But it was in the third one, which I generally didn't like that movie because they were all like, now they're married and they're just fighting for the whole movie.

• 1:19:12Speaker 00

  And I didn't really like seeing that. But there was one killer line where they're reflecting back on when they met 20 years earlier. And what they did in that first movie 20 years earlier is they just decided to trust the universe and they didn't even trade phone numbers or last names. They just said, I'll meet you back here in a year at this spot. And she said, okay, see you here in a year. And then they departed. And so now 20 years later, in the third movie, they're going, God, why did we do that? Like, what were we thinking? Like, why not just trade phone numbers? And one of them said, I know why we did that. It's because when you're in your twenties, you think that these amazing

• 1:19:57Speaker 00

  loves will just come all the time. You think, oh, there's enough, you know, that was a really sweet meeting. But, you know, if this one doesn't work out, I'm sure there are plenty of others. He said, then you get to your 40s and you realize, they don't. Those are really, really rare. So I think that's why I still objectively, when you ask, what's your biggest mistake? The first thing that comes to mind is like that, me messing up that relationship. That was like me not taking it seriously enough. And I think it's so impressive that as I continue to know her now, she's still like. The most amazing person I know, and I messed it up. And what's funny is after that all happened, and I told some friends about my deep regret,

• 1:20:41Speaker 00

  different friends than the love avoidant friend. All of my friends do the thing that friends do to each other is they say like, oh dude, it's all right. You know, I'm sure, you know, it's for the best. I'm sure something inside you probably knew that this wouldn't have worked out anyway. I was like, no, no, no, no, no, no. Hold on. We should not sugarcoat everything because we really learn best from pain. Like, pain teaches us like nothing else. I think I need to feel the pain of this mistake and not write it off as like, oh, it's for the better anyway. No, it's not. I need to feel that pain so that the next time something like that comes into my life, that I don't make the same mistake.

• 1:21:26Speaker 00

  Yeah, man, you definitely messed that one up.

• 1:21:31Speaker 00

  Is it, is it her being friends with her now? No, she's amazing. She's like the most forgiving, wonderful. I don't know how she, her heart is ginormous. It's amazing. So, no, we're just, we're awesome. That's awesome. What's your, your compass? Who? Huh. It's situational. It's not steady. Sorry, that's not the admirable answer, but I think, I think maybe because I'm exploring so much. I like that metaphor today. I've never used that. The, you know, the pith hat in the, in the darkest Peru. Isn't that what they say in the Paddington book? The jungles of deepest Peru? Anyway, explorers

• 1:22:12Speaker 00

  don't go in a straight line very much. We're exploring. So I often focus on an aspect of my life that's lacking, and then I'll enhance it until maybe it's almost overflowing. And then I turn, turn my attention to whatever aspect is now lacking after that. So I think it's really interesting that we all have conflicting needs simultaneously. At the same time, we have a need for stability and a need for adventure, that we have a need for the comfort of the known and for the excitement of the unknown. Like, we have those needs at the same time.

• 1:22:58Speaker 00

  So I imagine that the perfect person would plot a path exactly like perfectly between those two needs, but more likely, and in my case, I tend to be a bit of a pendulum swinging back and forth. So yeah, I think my compass is not steady. It's situational.

• 1:23:20Shane Parrish?

  I think that's really interesting that you said, plot this perfect path between them. I think that would be a less interesting life.

• 1:23:29Speaker 00

  Maybe. Well, you know, some people like this approach to life. Like, so James Clear wrote this masterpiece of a book called Atomic Habits. And if you take that book all the way to heart, I could imagine someone taking all of their important values and making sure that they address them all every day or every week. You know, I need a little bit of time for adventure. I need a little bit of time for what's known. I need a little bit of learning, a little bit of creating, a little bit of family time, a little. And that is amazing and admirable. And I'm sure there are some people that would thrive. I mean, I would

• 1:24:06Speaker 00

  probably thrive if I lived like that. But I guess we all have a nature that, a way that comes, I was gonna say comes easiest to us, but maybe, um, maybe our nature amplifies certain ways. Like, we can do things that are against our nature. But if we do things that are in line with our nature, then those things are really supercharged, right? Because that's just our, our nature, you know? Cheetahs can also swim, but a dolphin does it better. I just don't find myself to be that kind of person that can do one thing for an hour and something else for two hours, and then this for an hour, and this for 30 minutes, that I just, I throw myself completely into whatever I'm doing, almost to a fault. I

• 1:24:51Speaker 00

  love just doing one thing all the way, and I'll do that for Hours or days or weeks or months, or sometimes like in the case of C D Baby, I did one thing for 10 years. And then at a certain point, I think, okay, I'm done. Now I'll do something else, but I obsess.

• 1:25:05Shane Parrish?

  That's beautiful. I love that. But I wanted to make a point before we went back to habits, but which was sort of like working with the world versus working against the world. Right. And the way that you sort of mentioned that made me think of that. I'm going to look up a quote by Joseph Tussman, and it's so indicative of this. He says, well, the pupil must learn, if he learns anything at all, is that the world will do most of the work for you, provided you cooperate with it by identifying how it really works and aligning with those realities. If we do not let the world teach us, it teaches us a lesson.

• 1:25:43Speaker 00

  Holy crap, that's good.

• 1:25:45Shane Parrish?

  And I think that's just a beautiful sort of like what you were hitting at. And I think that's just another way of looking at it, right? Where we can fight our reality, but it takes a lot of work and effort. Or we can align with with who we are and our realities or how the world works. And it takes a lot less work and effort. And when we do that, we're amplified. So you can think of it as like tailwinds versus headwinds.

• 1:26:12Speaker 00

  Nice one. Yeah, thanks for pulling up that quote and bringing up that subject. Because I think I spend a lot of time feeling a little bad about my nature. Like, I loved the book Atomic Habits.

• 1:26:24Shane Parrish?

  Yeah, James is a phenomenal writer.

• 1:26:26Speaker 00

  Yeah, but then I just look at, I look at my actions and I just dive completely into one thing at a time. And then I feel like I should be more like the Atomic Habits role model. And I just, I'm not. So that's a really nice way that you put it with Ted, headwinds and tailwinds and nature and just calling it the world instead of calling it your nature. Like, well, this is your reality. We're all experiencing our own reality. And in my reality, yeah, diving into one thing at a time is the way that the world rewards me.

• 1:26:56Shane Parrish?

  I think that word should is really interesting, right? Like, you said, I should be this way. So you're feeling some sort of like guilt about not being the way that you feel you should be. But like, do you actually want to be that way? Like, I mean, there's, there's so many ways to dive into that, like.

• 1:27:11Speaker 00

  I'll do one more Tony Robbins quote. He calls that shooting all over it.

• 1:27:17Speaker 00

  Okay, so, yeah, well, I mean.

• 1:27:21Speaker 00

  Look, I love changing my mind. I love having my mind change. I love changing. So yeah, when I'm reading Atomic Habits, for example, I'm sitting there going, "Yeah, yeah, this is the way to live. Right on. Yes." In that moment, yes, I want to be like that. There have been many ways. Obviously, look, we're all walking instead of crawling, right? We've all learned to, we've all changed in our lives. And so there are some ways that you might have said when you were 16, "Hey, this is just the way I am. I'm always going to be this way." But then at 36, you are very different than you were at 16. And no, it turned out not to be true. So I'd like to think that that can keep happening.

• 1:28:04Speaker 00

  So even at the age of 36, you could say, you know, "This is just my nature. This is how I am." But then at 56, you can be very different. You could have taken on some new skills and maybe it was gradual, but you can be a very different person than you used to be. So yeah, we can all construct who we are, I think. Speaking of who we are, do you have foundational values?

• 1:28:23Speaker 00

  There's probably change on situation, yeah, change on situation too, based on situation.

• 1:28:30Speaker 00

  Like a few months ago, again, here we are in April 2020. A few months ago, I would have said that travel and cultural exploration was one of the most important things to me. This is why I moved to Europe. I'm living in England right now. I moved here so that I could travel my ass off and visit. I have a list of 50 places in Europe that I've read about, learned about, know about, but never been to. I want to go to all these places. I want to learn the culture in each of these places. If you would have asked me a few months ago, "Derek, what are your foundational values?", I would have said, "Well, Shane, number one, cultural exploration, travel." And yeah, here we are in a quarantine, which I was sad about for a minute. And then I had to just question that, like, okay, really?

• 1:29:13Speaker 00

  Is that the only way I'm going to learn about other cultures? Is to get on a plane and go there and walk around? Like, or is that a bit of a red herring? Like, how much did I really learn about Turkey from walking around Istanbul? Wouldn't I have learned more about Turkey by reading three books about Turkey? Maybe watching the top five most popular movies in Turkey? And maybe scheduling phone conversations with 20 people from Turkey? You know, that's the same number of hours invested, but I think I would learn more about the culture in that way. So hey, I can do that from anywhere. So, all right, my values have just changed. You know, travel is no longer... My most important value, which means that I guess it was like friends of convenience, you know, like those friends in high school that you were friends with because they lived

• 1:29:57Speaker 00

  next door, but you weren't really that good friends, you know, as soon as you moved away, you never talked again. So I guess you weren't that good friends. So I guess travel wasn't really that much of a foundational value for me, was it? If it's if I was ready to let it go in a minute. So if I ask myself, what doesn't change? Yeah, what's invariant? Invariant. Good one. I love changing my mind. I love understanding a different point of view. I love creating useful things, whether that's books or articles or software or companies or who knows what in the future. Yeah, I think those are my big three. I love changing my mind, understanding a different point of view, and creating useful things.

• 1:30:39Speaker 00

  If I look back decades, those are always there. Those don't change. And you know what's really nice that I actually just thought about like yesterday morning when I woke up, this was one of those like 5:30 AM before I feel like getting out of bed thoughts, is that I love that all of the things I love that mean the most to me in life don't take any money. Like Oh, that's interesting. Like, I often ask myself, what I would do differently if you were to suddenly give me a hundred million dollars or a billion dollars? I'll like just open up my journal. In fact, I have a recurring journal on this subject. I have a journals that I call them topic journals or thoughts on where I come back to certain subjects repeatedly. So I

• 1:31:20Speaker 00

  just give them their own diary on that subject. So this one is called Richard.txt. What would I do if I had a hundred million dollars? And I often do that as some kind of like brainstorming thought experiment.

• 1:31:38Speaker 00

  And over and over and over again, every time I try, I'm always stumped. Like, I actually try really hard. I ask really hard. I really try, but every time, the answer's basically nothing. Like, if you were to give me a hundred million dollars, I'd just give it right away, because I just won't use it for anything. I just don't want it. All the things that I love the most in life, just learning, thinking, and creating, it doesn't take any money. And in fact, money is probably a distraction that would take me away from those things if I suddenly had to, you know, attend events or whatever, because, you know, wearing a tuxedo to attend this event now that I've been given the Nobel Prize. Like, I don't want a Nobel Prize because that would take me away from these things. You know what I mean? Like, put in whatever example you want there. But no, that was a nice thing to realize in bed yesterday morning.

• 1:32:23Shane Parrish?

  It goes back to the notorious B I G, man. More money, more problems.

• 1:32:28Speaker 00

  Exactly. I thought that was Warren Buffett that said that.

• 1:32:33Shane Parrish?

  He doesn't, he doesn't strike me as a guy with a lot of problems.

• 1:32:36Speaker 00

  That's true.

• 1:32:38Shane Parrish?

  How did you become a minimalist? Like, where does that come from? Were you always that way?

• 1:32:43Speaker 00

  No, it's because I moved house a few times.

• 1:32:48Speaker 00

  And I think, like I said earlier, with my, my woe is me story of the relationship, I think you learn best by feeling the pain. So you can preach minimalism to people, but then they can still go buy that desirable thing. I think it's only when you've felt the pain from having too much stuff that you finally get it, right? So I used to have too much stuff and I moved house like three or four times. And every single time, I'd load up the big U-Haul van full of my stuff and then get to the new place and unload the stuff. And, and, you know, the first time it was annoying, the second time it was really annoying.

• 1:33:30Speaker 00

  The third time, I was like, oh my God, why do I have, like, every time I unpack the stuff, what is it for? Why do I have all this stuff? Yeah, then it was an accident of fate that I moved to, I moved to Portland, Oregon while C D Baby was in full swing. Like, it was just taking off when I moved from the little village of Woodstock, New York, out to Portland, Oregon. And because I was just so damn busy with work, I put all of my stuff into storage temporarily. Meaning it to be like for a few weeks until I could find a home. But then I ended up living at my grandma's house.

• 1:34:07Shane Parrish?

  You realized you didn't need all this stuff.

• 1:34:09Speaker 00

  The stuff stayed in storage for six years until finally, six years later, I just, as a present to my employees, I'm like, okay, everybody, um, help yourself to my stuff. Everybody can have one thing. So, you know, somebody took my guitar, somebody took my speakers, somebody took my mixing boards, somebody took this and that. And yeah, I just gave away everything I owned. Uh, the last thing that I had to, that nobody wanted to take, of course, were my diaries. I used to have like 20 or 30 big notebooks that were my diaries ever since I was a teenager. And I looked at them and I was like, eh, am I really gonna lug these around for the rest of my life? I was like, eh, just threw them in the dumpster.

• 1:34:44Shane Parrish?

  If your house was burning, what would you grab?

• 1:34:46Speaker 00

  My kid.

• 1:34:50Speaker 00

  That was easy.

• 1:34:52Shane Parrish?

  Okay. What, what non-living thing would you?

• 1:34:56Speaker 00

  Oh, turtles living? Yeah, I guess so. No, um.

• 1:35:00Shane Parrish?

  I knew you were gonna say your kid, but then I was like, oh, I just phrased that wrong.

• 1:35:03Speaker 00

  Actually, yeah, I have a real answer. I have all of my passports, and yes, it's plural, in a little Ziploc bag for that specific purpose. It's like, I actually, yeah, all of my like debit.

• 1:35:18Shane Parrish?

  You're either a spy or?

• 1:35:20Speaker 00

  Well, no, I mean, I've just, you know, we could, it's just a different subject. It's, you know, I left America 10 years on my explorer mission, you know? And, um, so yeah, I've, I have five different driver's licenses from five different countries. And I have like four different resident ID cards and a few different passports from different countries. And yeah, and I keep them all in one folder. So it's like, in case of emergency, actually, I put them in a one safe place for that purpose. Like, my one thing that's irreplaceable, and I keep a little USB backup of my hard drive in there. So that, I've had this happen where my computer just completely dies. I'm like, eh, all right, I just take this little USB stick, I stick it into any new computer, I'm good to go in 30 minutes. So yeah, those things are in one grab bag. Like, everything else can be bought and replaced.

• 1:36:05Speaker 00

  Those things would be. Really hard.

• 1:36:07Shane Parrish?

  How old's your son now?

• 1:36:09Speaker 00

  Eight.

• 1:36:10Shane Parrish?

  That's a great age, man. Like, that is such a fun time.

• 1:36:13Speaker 00

  Yeah. Oh, they've all been fun times. It's funny. I did that to somebody once. I was like, when my kid was four, I talked to a dad whose kid was eight, and I said something about like, oh, I can't wait until he's that age. And he said, you know what, man? We always say that. Like, no, the time you're at is always the best time.

• 1:36:31Shane Parrish?

  I've noticed that the people that are around me that are the unhappiest parents have almost something universally in common, which is you can tell when they first have a child that they're going to be an unhappy parent, because they're always hoping for the next phase, right? And so this is my heuristic for identifying people who are sort of like unhappy parents, but haven't admitted it to themselves. So it's like when their child's in diapers, it's like, I can't wait until they're out of diapers. And then when they're out of diapers, it's like, I can't wait until they go to school, right? Like, my life will be so much easier when just this next, and you're always like, you're never in the moment with them. You're always just like, I can't

• 1:37:16Shane Parrish?

  wait till the next phase.

• 1:37:18Speaker 00

  Wow.

• 1:37:18Shane Parrish?

  But they tend to be like that across the board, right? Like, if only my spouse or partner was like this, then I would be happier. If only work recognized my value. If only, like, it's always this conditional,

• 1:37:32Shane Parrish?

  you know, it's a really interesting, I don't know how accurate it is, but I mean, anecdotally, it seems to hold.

• 1:37:39Speaker 00

  Yeah, to me, the person I knew that was most like that didn't have a kid, but she was in a perpetual state of, quote unquote, "I'm going through a hard time right now." And at first, I thought I just happened to meet her when she was going through a really hard time. But then I knew her for years and years and years and years and years. And no, she is always going through a hard time right now. It's just a way of seeing the world, it seems.

• 1:38:03Shane Parrish?

  Yeah, people, I mean, there's a great quote, I forget who said it, but it's like, people show you who they are. Let them.

• 1:38:10Shane Parrish?

  Which is interesting because we often meet people going through like a hard time or we write this off, right? Like somebody is like, oh, you know, I just can't wait till they're out of diaper. Oh, they're having a bad day. But then it gets reinforced over and over again. And then you're like, you know, but you've mentally just sort of like walked away from it. What's the most common mistake you see people repeat over and over?

• 1:38:32Speaker 00

  The most common, uh, drinking alcohol?

• 1:38:39Speaker 00

  Oh, sorry. That's not profound.

• 1:38:41Shane Parrish?

  No, do you drink?

• 1:38:43Speaker 00

  A little bit. I mean, really, every few months I'll have a drink, but it's, um, yeah, sorry, that's not profound. I just tried to quickly think, what's the most common? Yeah, you didn't ask me what's the most important to addressing humanity, but yeah, that's the most common one. But I don't, I don't think-

• 1:38:59Shane Parrish?

  Like drinking or abusing? Like, walk me through that a little bit more.

• 1:39:03Speaker 00

  A lot of people, you know, are on that gray area between them. So I think the, the mentality that says it's, hey, you know, anytime you get together with friends, of course, you need alcohol. Hey, I'm having friends over. Get the wine. I think that that blurs kind of quickly into like, well, we need the, we're having friends over. We need wine. I wish that at that point becomes like something a little close to addiction. But I don't know. That was, sorry. I don't have profound thoughts on this. That was just off the top of my head.

• 1:39:34Shane Parrish?

  No, that's really interesting. I have a friend who, just to add to this for a second, because he, he showed me something that I, or he put things in a way that made me see things in a new light. And he said, I was in that gray area for a long time. And he's like, the, how I realized it was I realized I was like, hanging out with people I didn't want to hang out with, just to consume, like to have a few beers or a few glasses of wine.

• 1:39:59Speaker 00

  Wow. Yeah. I'm, I'm very, I'm almost unreasonably averse to anything that looks like addiction, like, um,

• 1:40:10Speaker 00

  Like even recently, I had, I used to always keep mints in the car. And when I was driving, I would have a mint. And then I, one time I noticed, I was like, oh, my God, I'm out of mints. Oh, my God, hold on, I need to find a gas station to pull into to go get some mints because I have no mints. I was like, whoa, whoa, whoa, hold on. What was that? Why do I think I need mints? I was like, OK, no more mints for me. So just even little tiny examples like that I am wary of. But, but the thing is, with people who drink, I don't think of things as mistakes much. Like, you know, your real question was, what's a common mistake? So I don't know if I could call drinking alcohol a mistake. And in fact, I actually really appreciate it when people think and act differently than me.

• 1:40:55Speaker 00

  Right? So if I think that it's wrong, that makes it even more interesting because now I want to understand their strange perspective.

• 1:41:07Shane Parrish?

  Right.

• 1:41:08Speaker 00

  It's more interesting when somebody thinks differently from me. I actually, I tried living in San Francisco for a little while. I had to leave after a few months. I hated it because everybody thinks like me. And so I'm happier living in a place like Singapore, where most people don't think like me. And I'm like, ah, there we go. This is much more interesting. I want to know more about people that are not like me. That's, they're more interesting to me.

• 1:41:35Shane Parrish?

  All right, final question. But it's a big one. I mean, it's a big gnarly one. So go as in detail.

• 1:41:43Speaker 00

  Now, I don't know if you're being sarcastic or not.

• 1:41:45Shane Parrish?

  No, not at all. What does it mean to live a meaningful life?

• 1:41:48Speaker 00

  I don't think life has meaning. I don't think anything has inherent meaning. I think it's all just a blank slate that we can project whatever meaning we want onto. Like my example of walking the plank before. And sorry if anybody wants to remind me what book that came from. You try on different meanings and none of them are correct. They're all just different ways of thinking of something. And then if one of them makes you take better actions, well, then congratulations. But it's nice to remember that meaning is not a fact.

• 1:42:28Speaker 00

  It's just a belief that you're wielding for now. It's just a perspective that you're choosing. So when people ask about the meaning of life, as if it's a geode you're going to crack open and find some factual answer inside. I find it useful to remember that it's just a perspective. It's just a belief that you're taking on for today.

• 1:42:51Shane Parrish?

  That's beautiful. Thank you so much, Derek. This was a phenomenal conversation.

• 1:42:56Speaker 00

  Thanks, Shane. You ask great questions, and I am so psyched to continue reading your book tonight.

• 1:43:09Shane Parrish?

  Hey, one more thing before we say goodbye. The Knowledge Project is produced by the team at Fernham Street. I want to make this the best podcast you listen to, and I'd love to get your feedback. If you have comments, ideas for future shows, or topics, or just feedback in general, you can email me at [email protected] or follow me on Twitter at ShaneAParish. You can learn more about the show and find past episodes at fs.blog/podcast. If you want a transcript of this episode, go to fs.blog/tribe and join our learning community. If you found this episode valuable, share it online with the hashtag The Knowledge Project or leave a review. Until the next episode.