My mother watches the news religiously. To her credit, she watches a variety of sources and creates her own takeaways based on them. Regardless, there's a common theme in all the sources she watched – they focus on fear or shock-inducing stories with a negative bias. As you might guess, I hear it when I talk with her.
While I value being informed, I also value things that nourish or make you stronger (as opposed to things that make you weak or less hopeful).
Negativity Sells.
Sure, news sources throw in the occasional feel-good story as a pattern interrupt … but their focus skews negative. History shows that stories about improvement or the things that work simply don't grab eyeballs, attention, or ratings as consistently as negativity-focused stories do.
The reality is that negativity sells. If everything were great all the time, people wouldn't need to buy as many products, they wouldn't need to watch the news, and this cycle wouldn't continue.
It's worth acknowledging and understanding the perils our society is facing, but it's also worth focusing on the ways humanity is expanding and improving.
As a brief respite from the seemingly unending stream of doom and gloom, Information Is Beautiful has a section focused on "Beautiful News". It's a collection of visualizations highlighting positive trends, uplifting statistics, and creative solutions. It's updated daily and can be sorted by topic. I suggest you check it out.
Small distinctions separate wise men from fools … Perhaps most important among them is what the wise man deems consequential.
This post discusses Socrates' Triple Filter Test, which involves checking information for truth, goodness, and usefulness. It also explores how this concept applies to decision-making in business and life by focusing on important information and filtering out the rest. The key to making better choices and staying focused is to avoid damaging or irrelevant information.
Socrates' Triple Filter
In ancient Greece, Socrates was reputed to hold knowledge in high esteem. One day an acquaintance met the great philosopher and said, "Do you know what I just heard about your friend?"
"Hold on a minute," Socrates replied. "Before telling me anything, I'd like you to pass a little test. It's called the Triple Filter Test."
"Triple filter?"
"That's right," Socrates continued. "Before you talk to me about my friend, it might be a good idea to take a moment and filter what you're going to say. That's why I call it the triple filter test.
The first filter is Truth. Have you made absolutely sure that what you are about to tell me is true?"
"No," the man said, "Actually I just heard about it and…"
"All right," said Socrates. "So you don't really know if it's true or not. Now let's try the second filter, the filter of Goodness. Is what you are about to tell me about my friend something good?"
"No, on the contrary…"
"So," Socrates continued, "You want to tell me something bad about him, but you're not certain it's true. You may still pass the test though, because there's one filter left. The third filter is Usefulness. Is what you want to tell me about my friend going to be useful to me?"
"No, not really."
"Well," concluded Socrates, "If what you want to tell me is neither true, nor good, nor even useful … then why tell it to me at all?"
With all the divisiveness in both media and in our everyday conversations with friends, family, and strangers … this is a good filter for what you say, what you post, and even how you evaluate markets, the economy, or a business opportunity.
How Does That Apply to Me or Trading?
The concept of Socrates' Triple Filter applies to markets as well.
When I was a technical trader, rather than looking at fundamental data and scouring the news daily, I focused on developing dynamic and adaptive systems and processes to look at the universe of trading algorithms to identify which were in phase and likely to perform well in the current market environment.
That focus has become more concentrated as we've transitioned to using advanced mathematics and AI to understand markets.
Filter Out What Isn't Good For You.
In contrast, there are too many ways that the media (meaning the techniques, graphics, music, etc.), the people reporting it, and even the news itself appeal to the fear and greed of human nature.
Likewise, I don't watch the news on TV anymore. It seems like story after story is about terrible things. For example, during a recent visit with my mother, I listened to her watch the news. There was a constant stream of "oh no," or "oh my," and "that's terrible". You don't even have to watch the news to know what it says.
These concepts also apply to what you feed your algorithms. Garbage in, garbage out. Just because you can plug in more data doesn't mean that data will add value. Deciding what "not to do" and "what not to listen to" is equally as important as deciding what to do.
Artificial intelligence is exciting, but artificial stupidity is terrifying.
What's The Purpose of News for You?
My purpose changes what I'm looking for and how much attention I pay to different types of information. Am I reading or watching the news for entertainment, to learn something new, or to find something relevant and actionable?
One of my favorite activities is looking for new insights and interesting articles to share with you and my team. If you aren't getting my weekly reading list on Fridays – you're missing out. You can sign up here.
By the way, I recently found a site, Ground News, that makes it easy to compare news sources, read between the lines of media bias, and break free from the blinders the algorithms put on what we see. I'd love to hear about tools or sites you think are worth sharing.
Getting back to Socrates' three filters and business, I often ask myself: is it important, does it affect our edge, or can I use it as a catalyst for getting what we want?
There's a lot of noise out there competing for your attention. Stay focused.
If you're interested in AI and its impact on business, life, and our world, I encourage you to check out some of my past podcast interviews.
As I work on finishing my book, "Compounding Insights: Turning Thoughts into Things in the Age of AI," I've revisited several old episodes, and some are certainly worth sharing. I've collected a few here for you to listen to. Let me know what you think.
In 2021, I recorded two interviews that I especially enjoyed. The first was done with Dan Sullivan and Steven Krein for Strategic Coach's Free Zone Frontier podcast… and the second was with Brett Kaufman on his Gravity podcast.
Please listen to them. They were pretty different, but both were well done and interesting.
Free Zone Frontier with Dan Sullivan and Steve Krein
Free Zone Frontier is a Strategic Coach program (and podcast) about creating "Free Zones." It refers to the green space where entrepreneurs collaborate and create without competition.
It's a transformative idea for entrepreneurial growth.
This episode focused on topics like building a bigger future, how decision-making frameworks and technology can extend your edge, and what it takes to get to the next level. I realize there is a lot of Strategic Coach jargon in this episode. However, it is still easy to understand, and there was great energy and an elevated conversation about worthy topics.
As an aside, Steve Krein is my cousin, and we joined Strategic Coach entirely separately before realizing we had joined the same group.
Usually, I talk about business, mental models, and the future of AI and technology, but Brett Kaufman brought something different out of me.
Brett's Gravity Project is about living with intention, community, consciousness, and connection. He focuses on getting people to share their life experiences … with the intent that others can see themselves in your story.
In my talk with Brett, we do talk about the entrepreneurial journey … but we also probe some deep insights by discussing the death of my younger brother, how my life changed almost immediately upon meeting my wife, and why love is the most powerful and base energy in the universe.
This was not a typical conversation for me (a different ratio of head-to-heart), but it was a good one (and I've had many people reach out because of this podcast). It was fun to revisit my childhood, from playing with a cash register at my grandfather's pharmacy to selling fireflies or sand-painting terrariums; it's funny how those small moments influenced my love for entrepreneurship.
Last year, I recorded two other podcasts that I'm excited to share … It's interesting to see the change in topic and focus – but how much is still the same (timeless).
Clarity Generates Confidence With Gary Mottershead
I talked with Gary about intentionality, learning from the past, and how AI adoption is more about human nature than technology … and more.
On the surface, this episode may seem like just another conversation about AI, but I value the diverse insights, points of emphasis, and perspectives that different hosts illuminate.
In talking with Scott, we dove deeper into emotional alchemy, self-identity, and how to move toward what you want in life – instead of away from what you don't want.
New York and Hawaii top the list with 12% and 11.8% respectively. Alaska ends the list with 4.9%, followed by New Hampshire with 5.6%.
Alaskans don't pay state income tax, but neither do Florida, Nevada, South Dakota, Tennessee, Texas, Washington, or Wyoming. So, if you're trying to avoid taxes, they all sound like better bets.
New Hampshire still has a better state tax burden than any of them despite its 4% flat tax on interest and dividend income.
If you don't like paying taxes (and don't mind the cold), then Alaska might be worth the winters?
Meanwhile, we hear a lot about the exodus from California, but not from New York or Maine. Maybe it's the people … or maybe it's their Governor?
A few years ago, I shared a presentation called Mindset Matters that I had given to a small mastermind group.
This past week, I revisited that content in a different group.
One of my core beliefs is that energy is one of the most important things we can measure. I believe it so strongly I paid Gaping Void to put it on my wall.
It means exactly what it sounds like – but also a lot more.
Energy affects how you feel, what you do, and what you make it mean. That means it is a great way to measure your values too. Consequently, even if you don’t recognize it, energy has a lot to do with who you hire and fire. It affects where you spend your time. Ultimately, it even affects the long-term vision of our company. If something brings profit and energy, it is probably worth pursuing.
In contrast, fighting your energy is one of the quickest ways to burn out. Figuring out who and what to say “no” to is a crucial part of making sure you stay on the path and reach your goals.
I believe that words have power. Specifically, the words you use to describe your identity and your priorities change your reality.
First, some background. Your Roles and Goals are nouns. That means “a person, place, or thing.” Let's examine some sample roles (like father, entrepreneur, visionary, etc.) and goals (like amplified intelligence, autonomous platform, and sustainable edge). As expected, they are all nouns.
Next, we’ll examine your default strategies. You use these in order to create or be the things you want. The strategies you use are verbs. That means they define an action you take. Action words include: connect, communicate, contribute, collaborate, protect, serve, evaluate, curate, share … and love. On the other end of the spectrum, you could complain, retreat, blame, or block.
People have habitual strategies. I often say happy people find ways to be happy – while frustrated people find ways to be frustrated. This is true for many things.
Seen a different way, people expect and trust that you will act according to how they perceive you.
Meanwhile, you are the most important perceiver.
Another distinction worth making is that the nouns and verbs we use range from timely to timeless. Timely words relate to what you are doing now. Timeless words are chunked higher and relate to what you have done, what you are doing, and what you will do.
The trick is to chunk high enough that you are focused on words that link your timeless Roles, Goals, and Strategies. When done right, you know that these are a part of what makes you … “You”.
My favorite way to do this is through three-word strategies.
These work for your business, priorities, identity, and more.
I’ll introduce the idea to you by sharing my own to start.
Understand. Challenge. Transform.
The actual words are less important than what they mean to me.
What’s also important is that not only do these words mean something to me, but I’ve put them in a specific order, and I’ve made these words “commands” in my life. They’re specific, measurable, and actionable. They remind me what to do. They give me direction. And, together, they are a strategy (or process) that creates a reliable result.
First, I understand, because I want to make sure I consider the big picture and the possible paths from where I am to the bigger future possibility that I want. Then, I challenge situations, people, norms, and more. I don’t challenge to tear down. I challenge to find strengths … to figure out what to trust and rely upon. Finally, I transform things to make them better. Insanity is doing what you always do and expecting a different result. This is about finding where small shifts create massive consequences. It is about committing to the result rather than how we have done things till now.
If I challenged before I knew the situation, or I tried to transform something without properly doing my research, I’d risk causing more damage than good.
Likewise, imagine the life of someone who protects, serves, and loves. Compare that to the life of someone who loves, serves, and protects. The order matters!
There is an art and a science to it. But it starts by taking the first step. Try to find your three words.
I’ve set daily alarms on my phone to remind me of these words. I use them when I’m in meetings, and they’re used to evaluate whether I’m showing up as my best self.
You can also create three words that are different for the different hats you wear, the products in your business, or how your team collaborates.
Like recipes, your words should have ingredients, orders, and intensities. As you use your words more, the intensities might change. For example, when my son was just getting out of college, one of his words was contented because he was focused on all the things he missed from college – instead of being appreciative of the things he had. Later, his words switched to grateful and then loving. Evolutions that paired with his personal journeys and represented stronger actions.
Realize that we create what we want by doing. As such, choose words that inform or spark the right actions. You can see that in my son’s words. As he grew, he became more comfortable actively prompting the actions he wanted to approach life with, instead of just passively hoping for a feeling.
You can apply these simple three-word strategies almost everywhere once you learn how to create them.
Population growth is an interesting measure. Historically, growth has been slow … but something changed that, and the implications are stunning.
Scientists estimate that humans have existed for over 130,000 years.
It wasn’t until 1804 that the world’s population reached 1 billion. The population doubled once more by 1927, 123 years later, and then again by 1974, a mere 47 years later.
The Agricultural Revolution spurred early population growth. Subsequently, since 1804, the Industrial Revolution, alongside new technologies and advancements in health and safety, has dramatically enhanced the quality of life and accelerated population growth.
The global population continues to expand as more women are giving birth, despite the statistical trend of each woman having fewer children. Here is a chart showing that.
World population growth rates peaked in the late 1960s and have declined sharply in the past four decades. Nonetheless, world population figures continue to grow. We’re expected to reach 9 billion people by 2050, but a lot of that growth comes from developing countries—it also almost exclusively comes from urban areas.
Urbanization: Megacities
Here is another trend worth noting. Since 2014, over 50% of the world’s population has lived in urban areas – today it’s approximately 55%. That number is growing.
Ironically, as we grow more digitally connected, our world is shrinking, and our populations are concentrating.
An interesting consequence of this rapid urbanization and population growth in developing countries has been the increased development of Megacities – defined as cities with populations greater than 10 million. Today, there are 33 megacities – more than triple the number in the 1990s.
This creates a set of interesting opportunities and challenges. For example, how will these cities deal with infrastructure (e.g., sanitation, transportation, etc.)?
As information and money become increasingly decentralized, and it becomes easier and easier to trade and communicate globally, it’s interesting to see a centralization of the population.
This post considers the “Chart of the Century” created and named by Mark Perry, an economics professor and AEI scholar. This chart has received considerable attention because it contains extensive information about the challenges faced by the Fed and other Washington policymakers.
The most current version reports price increases from 1998 through the end of 2023 for 14 categories of goods and services, along with the average wage and overall Consumer Price Index.
It shows that prices of goods subject to foreign competition — think toys and television sets — have tumbled over the past two decades as trade barriers have come down worldwide. Meanwhile, the costs of so-called non-tradeable items — hospital stays and college tuition, to name two — have surged.
From January 1998 to now, the CPI for All Items has increased by over 90% (up from 59.6% in 2019, when I first shared this chart).
Lines above the overall inflation line have become functionally more expensive over time, and lines below the overall inflation line have become functionally less expensive.
At the beginning of 2020 (when I shared the 2019 post), food, beverages, and housing were in line with inflation. They’ve now skyrocketed above inflation, which helps to explain the unease many households are feeling right now. College tuition and hospital services have also continued to rise over the past few years—even in relation to inflation.
There are many ways to interpret this chart. You can point to items in red whose prices have exceeded inflation as government-regulated or quasi-monopolies. You can point to items in blue as daily commodities that have suffered from ubiquity, are subject to free-market forces, or are goods subject to foreign competition and trade wars.
Looking at the prices that decrease the most, they’re all technologies. New technologies almost always become less expensive as we optimize manufacturing, components become cheaper, and competition increases. From VisualCapitalist, at the turn of the century, a flat-screen TV would cost around 17% of the median income ($42,148). In the early aughts, though, prices began to fall quickly. Today, a new TV will cost less than 1% of the U.S. median income ($54,132).
Compare “tradable” goods like cell phones or TVs (with lots of competing products) to less tradable “goods” like hospital stays or college tuition, and unsurprisingly, they’ve gone in opposite directions. In 2020, I asked what the Coronavirus would do to prices, and the answer was less than expected. If you don’t look at the rise in inflation but instead the change in trajectories, very few categories were heavily affected. While hospital services have skyrocketed since 2019, they were already skyrocketing.
At this point, we’re pretty far removed from quarantine’s most extreme forces. Textbooks have come back down, as have childcare and medical care services. New cars and household furnishings have leveled out. Otherwise, the trajectories have been pretty unaffected.
We can look one step deeper if we consider average hourly income. Since 2000, overall inflation has increased by 82.4%, while average hourly income has increased by 114%. This means that hourly income increased 38% faster than prices (which indicates a 14.8% decrease in overall time prices). You get 17.3% more today for the same amount of time worked ~24 years ago.
It’s interesting to look at data like that, knowing that the average household is feeling a “crunch” right now. My guess is that few consumers distinguish between perception and reality. However, feeling a crunch isn’t necessarily the same as being in a crunch.
For instance, we must account for ‘quality of life creep,’ where people tend to splurge on luxuries as their standard of living improves. With the ease of online shopping and access to consumer credit, it’s become increasingly easy to indulge in impulse purchases, leading to reduced savings and feelings of financial scarcity. This phenomenon is a function of increased consumption (rather than inflation), yet it still leaves consumers feeling like they’re struggling to make ends meet.
Perry’s ‘Chart of the Century’ reveals the complex relationships between inflation, consumption, and economic growth. While households may feel financial strain, the data shows that income has outpaced inflation, and technology has made many goods more affordable. Nonetheless, our tendency to splurge on luxuries and increased consumption have contributed to a sense of financial struggle.
How can policymakers address the sectors experiencing significant price hikes, like healthcare and education, without stifling innovation in tradable goods and services?
How do you think these issues will impact the Election?
In fact, I hit five million "butt-in-seat" miles on American Airlines in 2019 (back when frequent flyer programs were about flying frequently rather than credit card spending).
It is 2024, and I am now just below 5.5M. That means I averaged a little over 100,000 miles per year, even through the COVID shutdown.
Yes, I expect that my travel will slow down. But as I traveled, I didn't expect it to continue at the pace it did.
Nonetheless, it has been good for me, and the time spent traveling has been productive.
I have a different workflow when I travel, and it works for me.
Ultimately, I believe that good things happen when you are in motion!
Many people, however, are focused on the hassle.
The practical realities of travel mean I spend some time thinking about the things airlines do well or poorly. Nonetheless, I appreciate the benefits more than the frustrations.
As you probably noticed, Airline Status means much less today than it used to (which is why it feels even more important to get). Every week, the airlines seem to make the space between seats smaller while the time it takes to find overhead luggage space gets shorter. It seems like most airlines could change its slogan to "We are not happy until you're not happy."
Yet the planes themselves are getting better. Here, for example, is what an empty 787 looks like.
It looks more like a set from Star Trek than the hellscape passengers complain about regularly.
If you really don't like commercial flying, you can fly on any of the "economical" private options like JetSmarter or WheelsUp. Or, better yet, you could be like this guy and buy the world's only private Boeing 787 Dreamliner.
March Madness is in full swing and will have the world's attention for a few more days. As you can guess, almost no one has a perfect bracket anymore. Yale beat Auburn, James Madison beat Wisconsin, Michigan State beat Mississippi State, and by the end of day 1, only 2,000 brackets remained intact. That's .008% of all brackets submitted.
Before 24/7 sports channels, people watched the weekly show "The Wide World of Sports." Its opening theme promised "The thrill of victory and the agony of defeat!" and "The human drama of athletic competition." That defines March Madness.
The holy grail is mighty elusive in March Madness (as in most things). For example, the odds of getting the perfect bracket are 1 in 9,223,372,036,854,775,808 (2.4 trillion based on a Duke Mathematician's formula that takes into account rank). It's easier to win back-to-back lotteries than picking a perfect bracket. Nonetheless, I bet you felt pretty good when you filled out your bracket.
In 2018, it was estimated that March Madness generated $10 Billion in gambling (twice as much as the Super Bowl)
Feeding the Madness
"Not only is there more to life than basketball, there's a lot more to basketball than basketball." – Phil Jackson
In 2017, I highlighted three people who were (semi) successful at predicting March Madness: a 13-year-old who used a mix of guesswork and preferences, a 47-year-old English woman who used algorithms and data science (despite not knowing the game), and a 70-year-old bookie who had his finger on the pulse of the betting world. None of them had the same success even a year later.
Finding an edge is hard – Maintaining an edge is even harder.
That's not to say there aren't edges to be found.
Bracket-choosing mimics the way investors pick trades or allocate assets. Some people use gut feelings, some base their decisions on current and historical performance, and some use predictive models. You've got different inputs, weights, and miscellaneous factors influencing your decision. That makes you feel powerful. But knowing the history, their ranks, etc., can help make an educated guess, and they can also lead you astray.
The allure of March Madness is the same as gambling or trading. As sports fans, it's easy to believe we know something the layman doesn't. We want the bragging rights of that sleeper pick, of our alma mater winning, of the big upset.
You'd think an NCAA analyst might have a better shot at a perfect bracket than your grandma or musical-loving co-worker.
In reality, several of the highest-ranked brackets every year are guesses.
The commonality in all decisions is that we are biased. Bias is inherent to the process because there isn't a clear-cut answer. We don't know who will win or what makes a perfect prediction.
Think about it from a market efficiency standpoint. People make decisions based on many factors — sometimes irrational ones — which can create inefficiencies and complexities. It can be hard to find those inefficiencies and capitalize on them, but they're there to be found.
In trading, AI and advanced math help remove biases and identify inefficiencies humans miss.
Can machine learning also help in March Madness?
“The greater the uncertainty, the bigger the gap between what you can measure and what matters, the more you should watch out for overfitting – that is, the more you should prefer simplicity” – Tom Griffiths
That being said, people have tried before with mediocre success. It's hard to overcome the intangibles of sports – hustle, the crowd, momentum - and it's hard to overcome 1 in 9.2 quintillion odds.
Two lessons can be learned from this:
People aren't as good at prediction as they predict they are.
Machine Learning isn't a one-size-fits-all answer to all your problems.
In January, Elon took to Twitter and announced that the first human recipient had received an implant and was showing promising neuron spike detection.
Neuralink designed PRIME to record and transmit neural data to interpret brain activity into movement intention. The PRIME Brain-Computer Interface empowers disabled individuals by enabling them to communicate and engage with the world in innovative and impactful ways, such as regaining the ability to speak and interact with others. In the future, advancements in the PRIME Brain-Computer Interface could even assist individuals with spinal cord injuries learn to walk again.
The first patient was 29-year-old Noland Arbaugh, a complete quadriplegic who had lost sensation and suffered paralysis from below the shoulders after sustaining a spinal injury during a diving accident eight years ago.
When we first began receiving updates about him, we were excited to hear that he could use a computer cursor. That was a big step … and the start of many others. Now, we're being told that he recently used the technology to stay up all night playing a video game called Civilization 6.
Similarly, in 2022, a completely paralyzed man used his brand-new brain implant to ask his caregivers for a beer.
It sounds like a joke, but these are the types of stories that make me optimistic. Both examples highlight a new capability … but also a deeper purpose, freeing the human to enjoy being human and enhance the quality of their life.
This is a great reminder. Media coverage often focuses on the fear of an increasingly tech-driven world, and what it means for humanity … but the best uses of technology allow us to be more human.
What used to be science fiction is becoming reality, and possibilities are becoming inevitabilities.
