Capitalogix

The Secret To Competing Against Tech Giants

The last time I drove in New York City traffic, I complained that "I didn’t understand why people came here" because it was too crowded.

That reminds me of one of Yogi Berra’s famous quotes. “Nobody goes there anymore because it’s too crowded.”

He said that about a famous restaurant where he used to work.

The same is true in business. Opportunity draws a crowd ... but the best opportunities are often in areas of less competition.

For entrepreneurs, oversaturation can turn products into commodities, reducing profit potential. Conversely, many shy away when a challenge seems insurmountable, creating unexpected opportunities for those willing to take the risk.

As an entrepreneur, I’m drawn to projects others might dismiss as science fiction. These are the challenges that often lead to the most groundbreaking and rewarding outcomes.

Moonshot Projects

Moonshot projects offer a unique advantage. While they may seem daunting, their audacious nature often means less competition and greater potential for transformative impact and extraordinary profits.

A moonshot project is a highly ambitious, transformative endeavor that seeks to solve a significant problem or create a revolutionary innovation. These projects are characterized by:

• Audacious Goals: They aim for breakthroughs that seem nearly impossible to achieve.
• Disruptive Impact: They strive to create solutions that are vastly superior to existing offerings, often by introducing entirely new paradigms.
• High-Risk, High-Reward: These projects embrace the potential for failure in pursuit of groundbreaking results.
• Long-Term Focus: They prioritize long-term impact over short-term gains.
• Technological Advancements: They leverage cutting-edge or even nascent technologies.
• Paradigm Shifts: They challenge conventional wisdom and industry norms.

Moonshot projects are inherently challenging. They demand significant resources, interdisciplinary collaboration, and a willingness to venture into the unknown. This perceived difficulty often deters potential competitors, creating a unique opportunity for those willing to take the risk.

When successful, they push the boundaries of what is possible and redefine the landscape of their respective fields.

In part, that is why a 10X mindset is particularly well-suited for Moonshot projects. By aiming for a tenfold improvement over existing solutions, you’re essentially operating in a space with little to no competition or opposition. This allows you to redefine the rules of the game and establish a sustainable competitive advantage.

Our strategy of creating a unique, sustainable competitive advantage aligns perfectly with the Moonshot approach. By choosing to play a different game (with an asymmetric edge), we’re not just competing; we’re fundamentally changing the playing field.

I’m not interested in going head-to-head with tech giants on their turf. Instead, the goal is to carve out our own niche, focused on using our unique abilities to push boundaries and extend our edge. Being slightly ahead of the competition can be a powerful attractor. It often leads potential competitors to seek collaboration rather than confrontation. They might approach you with ideas, money, or opportunities, aspiring to share in your advanced position and capabilities. This dynamic can create unexpected partnerships and accelerate progress in ways that benefit everyone involved.

When interviewing potential team members, I often share a crucial insight: if you’re seeking a job where you work 9-to-5 solving problems so you can go home feeling satisfied, this might not be the right fit.

We tackle challenges of a different magnitude. Our projects rarely have quick solutions. Instead, we focus on making steady progress towards ambitious goals.

I sometimes joke that our motto should be: “We suck less.” Nevertheless, the underlying truth is more profound. It’s about understanding your ultimate objective and recognizing that each step moves you in the right direction, no matter how small.

This approach aligns with our belief in playing a different game. We don’t just compete; we redefine the rules of engagement, creating our own metrics for success and pushing boundaries in ways that traditional thinking often overlooks. Kind of like this quote:

“I have not failed. I've just found 10,000 ways that won't work.” - Thomas Edison

It doesn’t make sense to challenge a bigger and better-funded competitor in an area where they have an asymmetric advantage. In other words, don’t compete with giants at their own game.

Choose to play a game you expect to win.

Playing a different game is a theme at Capitalogix. We believe that you control the game you’re playing, the rules, how you keep score, and even how you evaluate success. These things inform where to spend time, where to invest money, and even what looks like an opportunity to you. 

Wouldn’t you rather compete in areas where you can create a unique, sustainable competitive advantage? Personally, I want to invest in the things that extend the edges that let us win.

Why? Because ... Mediocrity Is Expensive!

What you lack in size or computer power, you can make up for in creativity, agility, and innovation. 

We sought to create a niche in the investment industry, not through computing power, but through unique approaches to age-old problems. We use AI and data science to enhance decision-making. 

We have an incredibly narrow and consistent focus. Within that area, we are willing to take on problems others avoid and pursue goals that others say are impossible. 

Our niche limits risk and lets us fail faster ... and learn faster. This allows us to take confident action while others are tentative. 

Most big companies - and most of our competitors - are afraid to be wrong. They have to protect their infrastructure, cash cows, and short-term performance metrics. It makes sense (from their perspective) that playing it safe means they’re secure. - but that’s not how it works. 

You can’t challenge the status quo when you are the status quo. 

10x Improvement Is Often Easier To Achieve Than 10%

 

Astro Teller via TED

"In 1962 at Rice University, JFK told the country about a dream he had, a dream to put a person on the moon by the end of the decade.The eponymous moonshot. No one knew if it was possible to do, but he made sure a plan was put in place to do it if it was possible.That's how great dreams are. Great dreams aren't just visions, they're visions coupled to strategies for making them real." - Astro Teller

Incremental change is hard - it’s finding new ways to do the same thing, and you often end up competing in very red oceans - saturated markets where you’re competing on price.

Moonshots sound harder, but you create your own niche, and the constraints of a new idea force creativity and energy. If you’re going after a goal that no one has accomplished before, it’s impossible to be in a red ocean, and it’s easier to mobilize a team around something exciting and new than decreasing some arbitrary metric by 2%. 

 

There are a couple of important lessons to keep in mind when pursuing the unknown.

• Forget what you know - self-reported “experts” are limited by their worldview. If you’re trying to get a different result, you won’t do it by playing by the same rules your predecessors followed. Heuristics are great for making life easier - but they’re very limiting when trying to create something new. 
• Attack the hardest problems first - your biggest problems are your biggest opportunities. If you don’t deal with the big problems now, you’ll never get around to it, and you’ll waste time, energy, and potentially realize you have to pivot much too late.  
• Be comfortable being uncomfortable - Most people find failure taboo, and they’re deathly afraid of it. Tony Robbins talks about our tendency to avoid pain more actively than we pursue pleasure, and it’s true in business. But failure is a part of business. The people I consider most successful got there through incredible pain tolerance and increasingly intense problems that they continued to conquer. 
• Have a short memory for pain - Focus on the gain, not the pain. People often focus on not having enough money, not enough time, or simply not having enough. That scarcity mindset is dangerous and can lead to getting lost in pain and fear. Acknowledging the pain/fear and moving forward from a place of abundance and opportunity helps create opportunities. 

As well, a clear identity is important. You have to understand what you’re pursuing and how you want to attack the problem. At Capitalogix, we’ve gotten very in tune with our goals. 

We invent techniques that identify and adapt to what happens in markets. We apply the lessons learned from past experiences, data science breakthroughs, and hard work to eliminate the fear, greed, and discretionary mistakes that are the downfall of most traders and decision-makers.

Small businesses don’t have a monopoly on these mindsets and these opportunities, but companies like Y Combinator, X(and no, I don't mean the company formerly known as Twitter), or HeroX are few and far between ... Elon Musk is famous for moonshots like Tesla, SpaceX, Starlink, Neuralink, Xai, etc. Google and Microsoft pursue moonshots as well. 

Good news ... the future is big enough for them and you. 

Choose something that lights you up and leverages what you already know and who you already are.

So what’s your moonshot?

Some Perspective: "I'm Way Closer To Lebron Than You Are To Me!"

With the NFL starting its regular season this week, I was thinking about the talent and effort it takes to compete as a professional athlete.

Take a second to reflect on the journey required to become a pro. In general, the top players from a youth league became standouts in high school and then were star players in college before eventually making it to a professional team. But here's the kicker ... in any other context, they're elite, but unless they're superstars in the NFL, they're considered average or worse. Think about it. By definition, half of the players are below average. 

Meanwhile, I recently came across an example from the NBA that illustrates this concept in a funny but profound way.

There's a relatively famous quote from NBA journeyman, Brian Scalabrine, who said: 

"I'm way closer to Lebron (James) than you are to me!" - Brian Scalabrine

For context, as a USC Trojans men's basketball player, Scalabrine was the top scorer and a leader in field goals and rebounds. He then played 11 years in the NBA ... but at no point in that time was he a star. He didn't put up great (or even good) stats, he wasn't a household name (though he did pick up the nickname "White Mamba"), and he is nowhere near the caliber of player that Lebron James is. In fact, throughout his career, he averaged just 3.1 points, 2.0 rebounds, and .8 assists a game. But, remember, he was good enough to play at a pro level for 11 years.

As a result, many unprofessional (weekend warrior) athletes thought he was an easy target. One day, Brian was playing a rec league game where he dropped 60 points. He tweeted about it, and a bunch of people started tweeting back to the now 40+ years old former NBA player that they could beat him. There are funny YouTube videos about this.

Brian responded by replying:

"Listen. I may suck for an NBA player. Those guys are pretty good. But I don't suck compared to you. You suck compared to me." - Brian Scalabrine

He then accepted their challenge by asking them to send in videos of their play and committed that he would go 1-on-1 against the best of them.

Scalabrine then went on to play 4 of the best players who responded, with one of them having NCAA D1 experience.

The end result?

He outscored them 44-6 - with two of the players scoring 0 points. 

 

via YouTube

It should be self-explanatory, but it seems to be a concept many people struggle with. Any given pro player has been the best of the best throughout their journey. They're the 1% of the 1%. 

But that is probably true for you too. If you're reading this article, you're likely killing it compared to the average Joe. 

Many of us are in rooms with phenomenal business owners and operators. When you meet people like Peter Diamandis, Ray Dalio, or Richard Branson, it's easy to focus on the distance between you and them.

Recognize that it is still a huge accomplishment to be a Brian Scalabrine rather than a Joe Schmo. 

They don't recognize what you and me do recognize. When you're in the NBA, there's all kinds of tells, right? Like if a guy puts his hand like that, you know what he's gonna do. If a guy does a hesitation, you know what he's gonna do. All that stuff is like in real time in the NBA, you got to be so on top of the reads. It's not speed. You can't look at me and say my brain is slow. My brain is fast. My body might be slow, but I have to read whether a guy's gonna shoot, drive, go to the middle, pass. If you're not reading those things, you're not playing in the NBA. - Brian Scalabrine

A helpful reminder.

Keep it up – and as always ... Onwards!

Examining Life Expectancy & Longevity

Life expectancy has been on a steady global rise for longer than I've been alive. 

via worldometers

Meanwhile ... the United States has fallen to 48th on the list of countries with the highest life expectancy.

Hong Kong tops the list with an average life expectancy of 85.63 overall - and 88.26 years for females. 

For comparison, the U.S.'s average life expectancy is only 79.46.

Many factors potentially impact the findings, for example, the average height and weight of a population (with shorter & lighter people tending to live longer), diet, healthcare system, and work/life balance. 

While some of this is out of your control (OK, a lot of it is) - there are definitely things you can do to increase your healthy lifespan. Meanwhile, some people like Bryan Johnson are doing everything they can to live forever. 

Popular Mechanics put together a video series called How to Live Forever, or Die Trying, where they interview scientists and anti-aging gurus to give you insight into pursuing a future without death. 

Unfortunately, recent science has shown that adults in their mid-40s to early 60s begin to experience significant changes in their alcohol, caffeine, and lipid metabolism, an increase in risk of cardiovascular disease, and a noticeable decrease in their skin and muscle health. When you hit your 60s, you also begin to see negative changes in carbohydrate metabolism, immune regulation, kidney function, and a further decline in the previously mentioned factors. 

Here's the good news. Not only is science and technology getting better, but you're always in control. You can make lifestyle changes to increase your longevity, and you can also find supplements, treatments, and protocols that can reverse those factors of aging. Even simple measures like increasing your physical activity or avoiding alcohol before bed can make a massive difference. 

They say a healthy person has thousands of dreams, but an unhealthy person only has one.

That is one of the reasons I spend so much time and energy thinking about staying healthy, fit, and vital.

Focusing on the positive is important ... But to extend your healthy lifespan, you have to start by telling the truth and finding out what you and your body struggle with the most.

A doctor friend gave me some advice. He said it doesn't matter if you are on top of 9 out of 10 things ... it's the 10th that kills you.

Despite our best efforts, Mother Nature remains undefeated.

With that said, here are some of my previous articles on longevity and health: 

• Live Long & Prosper
• How Much Time Do You Have Left?
• Changing Your Definition Of Resolution
• Workouts That Work
• Getting Used To A New Normal (Pt 1, Pt 2, Pt 3)

The goal isn't just to stay alive longer; it's to live life to its fullest for as long as possible.

I recently joined a fantastic mastermind group called DaVinci 50, run by Lisa and Richard Rossi. It brings together a remarkable collection of medical professionals and entrepreneurs focused on the latest research, treatments, and opportunities in health and longevity.

Another great tool I rely on is Advanced Body Scan. Early detection is crucial, but so is tracking the history of your scans to monitor changes over time. In my opinion, the most valuable scan is always the next one.

Additionally, I use a growing list of trackers and biometric devices to measure my heart rate, along with apps and tools for mindfulness, breathwork, and journaling. Together, these practices recognize that mind, body, and spirit combine to define how you live your life.

To end this post, I'll use a farewell phrase I heard often while growing up ... it translates roughly to "go in health, come in health, and be healthy." It's a beautiful way to wish someone well on their journey, emphasizing the importance of health and well-being.

I hope you found something interesting.  Let me know what things and practices work best for you.

An Antidote For Anxiety & Scary Times

People seem rattled right now, don’t they?

Wallets have been tight, and fears of a recession have run rampant.

Even though markets and the economy are not the same thing, many voters believe they are. Consequently, in an election year, I suspect the government will push every button and pull every lever to boost the market leading into November.

Speaking of the markets, they have been pretty volatile the last few weeks. They have posted some of their worst days since COVID-19 but some of the best, too.

We find ourselves in a particularly partisan election year, with lots of uncertainty about who is running, what they stand for, and whether they can make a difference – or even do the job.

The situation feels worse because scary geopolitical events (that threaten World War 3) punctuate seemingly endless negative news cycles.

Now, on to the real point ... those things don’t matter and shouldn’t steal your focus. Why? Because that’s the playing field we all have to navigate.

There will be winners and losers. The key distinction lies in whether you choose to focus on opportunities or risk. 

So, I thought this would be an excellent time to revisit how to cope with losses and manage your anxieties in “scary times.” 

The Anxiety Antidote

During scary times, many people suffer from “I should have ...”, or “if I would have ...”, or “if I could have ...” thoughts.

The problem is that thoughts like those create more stress and distraction. 

I’m reminded of a quote.

"When the trough gets smaller ... the pigs get meaner." - Dan Sullivan

 

 

Negative focus highlights loss, difficulties, past events, missing things, and what you don’t want.

Think of them as an unhealthy reflex that wastes energy, confidence, and time.

All We Have To Fear Is Fear Itself  

I often talk about market psychology and human nature. The reason is that markets reflect the collective fear and greed of their participants... people tend to get paralyzed during scary times like these.

But it’s not the economy that makes people feel paralyzed. People feel paralyzed because of their reactions and their beliefs about the economy. Your perception becomes your reality. 

A little examination reveals that most fear is based on a “general” trigger rather than a “specific” trigger. In other words, people are afraid of all the things that could happen and are paralyzed by the sheer scope of possibilities. These things don’t even have to be probabilities to scare them.

You gain a competitive advantage as soon as you recognize that it’s not logical. Why? Because as soon as you distinguish that fear as not necessarily true, you can refocus your insights and energy on moving forward. You can act instead of react. You make better decisions when you come from a place of calm instead of fear... so create that calm. 

Even a tough environment like this presents you with opportunities if you watch for them ... or even better ... if you create them. 

The Scary Times Success Manual

The goal is to move forward and feel better.

Strategic Coach offers ten strategies for transforming negativity and unpredictability into opportunities for growth, progress, and achievement. They call it the “Scary Times Success Manual,” and what follows are some excerpts:

Forget about your difficulties, focus on your progress.

Because of some changes, things may not be as easy as they once were. New difficulties can either defeat you or reveal new strengths. Your body’s muscles always get stronger from working against resistance. The same is true for the “muscles” in your mind, spirit, and character. Treat this period of challenge as a time when you can make your greatest progress as a human being.

Forget about events, focus on your responses.

When things are going well, many people think they are in control of events. That’s why they feel so defeated and depressed when things turn bad. They think they’ve lost some fundamental ability. The most consistently successful people in the world know they can’t control events - but continually work toward greater control over their creative responses to events. Any period when things are uncertain is an excellent time to focus all of your attention and energy on being creatively responsive to all the unpredictable events that lie ahead.

Forget about what’s missing, focus on what’s available.

When things change for the worse, many desirable resources are inevitably missing - including information, knowledge, tools, systems, personnel, and capabilities. These deficiencies can paralyze many people, who believe they can’t make decisions and take action. A strategic response is to take advantage of every resource that is immediately available to achieve as many small results and make as much daily progress as possible. Work with every resource and opportunity, and your confidence will continually grow.

Forget about your complaints, focus on your gratitude.

When times get tough, everyone must make a fundamental decision: complain or be grateful. In an environment where negative sentiment is rampant, the consequences of this decision are much greater. Complaining only attracts negative thoughts and people. Gratitude, on the other hand, creates the opportunity for the best thinking, actions, and results to emerge. Focus on everything you are grateful for, communicate this, and open yourself to the best possible consequences.

 Click here to download the full PDF version.

Final Thoughts

We can pontificate all day long on the short-term causes of the rises and falls of markets, but I don’t think it does much good. I let the algorithms worry about those. It’s the larger trends we have to be personally aware of.

I sound like a broken record, but volatility is the new normal.

• Markets exist to trade, and if there’s no “excitement” on either side, trades don’t happen.
• Trades are getting faster, which means more information has to confuse both the buyer and the seller.
• You’re no longer competing solely against companies and traders like you. It’s like the cantina from Star Wars; you’ve got a bunch of different creatures (and bots) interacting and fighting with each other, trying to figure out how to make their way through the universe.

Pair that with all the fear and uncertainty, and you’ve got a recipe for increased volatility and noise. That means that the dynamic range of a move will be wider and happen in a shorter period of time than ever before. You’ll hear me echo this thought over the next few years as the ranges continue to expand and compress. Cycles that used to play out over weeks now take days or hours. The game is still the same; it just takes a slightly different set of skills to recognize where the risks and opportunities are. 

Today’s paradigm - both in life and trading - is about noise reduction. It’s about figuring out what moves the needle and focusing only on that.

The crucial distinction is between adding data and adding information. Adding more data does not equal adding more information. In fact, blindly adding data increases your chances of misinformation and spurious correlations.

My final comment is that there’s a difference between investing and trading, and while humans can invest, if you’re “personally” still trying to trade - you’re likely playing a losing game. If you don’t know what your edge is, you don’t have one. 

If you’re investing, I’ll advise you to act like a robot. If you removed human fear and greed from your decision-making - what would you do?

Keep calm and carry on.

Cultivating An Innovator's Mindset

To some, new technology is a good thing. To others, less is more.

Most people simply “tolerate” technology transitions, some people drive them, and others crave them and use them as a catalyst for growth or strategic advantage.

The description begins with resistance and progresses towards compulsion. Reversing this sequence allows us to illustrate the innovation adoption process.

Here is a visualization of the innovation adoption model and market share.

In the image above, the blue line represents consumer adoption (taken from Geoffrey Moore’s “Crossing the Chasm,” while the yellow line represents market share. 

As you can see, only 2.5% of the population drive innovation (or adopt it early enough to help drive the Alpha & Beta versions of emerging technologies). 13.5% make up the Early adopters, who help get it ready for the mainstream. Then, the early and late majorities are the groups that ultimately consume (or use) the mature product. Meanwhile, Laggards are often forced kicking and screaming into “new” technologies as the early adopters are well on their way to subsequent iterations. 

Here is a link to Perplexity’s description of Crossing the Chasm’s innovation-adoption model and other key concepts from the book.

Even if you are not an innovator, here are a few Innovator Mindsets that I find useful. 

1. You Believe There’s A Better Way
   • Wherever you are, you know that there is a best next step, and you are eager to find it and take it.
   • You recognize that the opportunity for more (or better) often lies just beyond the constraints or problems of the current way.
   • The bigger future fuels your efforts. When initial excitement fades, understanding what the bigger future can bring helps you power through.
2. You Are Comfortable Being Uncomfortable
   • You understand that Pioneers sometimes take arrows in the back.
   • When creating a new reality, you expect some resistance as a result of the law of averages. Escaping the status quo takes a lot of momentum, but it’s worth it. 
   • You recognize when victory is near. In a quirk of human nature, too many people quit just before they would have won. Don’t make that mistake.
3. You Know Where You’re Going, Even If You Are Not Sure How You’re Going To Get There
   • Your goal should be your North Star. A clear direction is essential to ensure that activity leads to progress.
   • Measure progress and momentum rather than the distance from your goal.
   • It is easier to course-correct while in motion.
   • If you’re too committed to a path that isn’t leading in the right direction, you might find what Blockbuster, RadioShack, and Kodak found.
4. You Are Married To Questions (Not Necessarily Answers)
   • Everything works until it doesn’t; and nothing works forever.
   • It’s easy to find an answer (and think it’s correct), but there’s always a best next step or a better way.
   • Figure out what you want and how to get it. This is much more empowering than focusing on what you don’t want ... or why you can’t get it.
   • Ask questions that focus on opportunities or possibilities rather than challenges ... or what you want to avoid.
   • Energy flows where focus goes.
   • Commit to finding a way!

I plan on sharing more Innovator Mindsets. Let me know what you think.

Capturing Gold

The Olympics have officially concluded.  For many, it was the ultimate display of the thrill of victory and the agony of defeat.  For others, it's a way to boast about their country's medal count.  If you're curious, here are the final medal standings.

One of the most captivating moments occurred in the men's 100-meter sprint.  It made me reflect on how years of preparation can come down to a few thousandths of a second determining the difference between Gold, Silver, and Bronze — or virtual irrelevance.

Last week, Noah Lyles broke a 20-year U.S. drought in the men's 100m final, winning gold with a 9.784 time.

Lyles came into the race ranked No. 1 in the world, but he had to run his fastest time ever to win the Olympic gold medal, and he did so by the slimmest of margins — 0.005 seconds.

In that race, Lyles achieved an average speed of 25.7 mph, and his max speed hit 27.84 mph.

Surprisingly, Lyles didn't lead the race until the final and most important moment.  Many thought that Jamaica's Kishane Thompson had the gold ... but advanced technology showed that Lyles surged ahead in the final stretch, edging Thompson out by a split second to claim victory.  Here is the photo finish.

 

via ESPN

It took over half a minute (much longer than the race itself) for the judges to announce the winner - it was that close. 

As a tech nerd, what I found most interesting about the win was the camera used to certify the win. 

Omega, which has been the official Olympics timekeeper for decades, released a new camera that shoots 40,000 frames per second, aimed directly at the finish line.

It reminded me of the facial recognition technology NFL teams like the Dallas Cowboys use to track - theoretically - every person who steps into a stadium.  The cameras are so good that when a crime is committed, they can completely track the perpetrator as they travel throughout the stadium.  The Cowboys' security office boasts that their camera system surpasses even the ones used by Las Vegas casinos to catch cheaters at the gaming tables.  However, it seems like Omega has taken things to a whole new level at the Olympics with its advanced camera technology this year.

Many think the 200m race is Lyles' specialty.  His personal best of 19.31 seconds in the 200m is the American record, making him the third fastest in the event.

Unfortunately, Lyles couldn't grasp gold in the 200.  He got Bronze instead.  However, after the race, he revealed that he ran the race with COVID ... which might explain his drop in performance.  Still, it stands as a testament of will to me.

As a side note, while the International Olympic Committee does not pay athletes for winning at the Olympics, many countries do!

 

via Voronai

While the U.S. isn't near the top of the list - American athletes who get gold bring home $37,500.  A silver nets you $22,500, and a bronze nets you $15,000. 

Of course, these medals can also lead to other compensation and endorsements - but the payout table was still interesting.

The achievements of athletes like Noah Lyles create national pride and open doors to numerous opportunities and rewards.

Meanwhile, the integration of advanced technology in the Olympics highlights the importance of innovation in sports.  As we celebrate these victories, we also look forward to the future advancements that will continue to shape the world of athletics and the world itself.

The Most Common Pin Codes

There are 10,000 possible combinations in a 4-digit numeric PIN code.  Out of those, which is the least commonly used?  Which pin code is the least predictable, and which is the most predictable?

Nick Berry sought answers from the data from released/exposed password tables and security breaches.  

 

DataGenetics via InformationIsBeautiful

You guessed it ... the most common PIN code is 1234.  Unfortunately, that choice accounts for about 11% of all pin codes based on the 3.4 million data points evaluated.  After that, 1111 represents 6% of the population, 0000 2% of the population, followed by several other less popular answers.  The top 10 include 1212, 7777, 1004, 2000, 4444, 2222, and 6969.

I share these examples mostly to say that if you use one of those codes ... change it. 

You should also change your pin code if you use your birth date or anniversary year as your pin.

I won't share the least popular PIN codes, as I assume they'll also get added to a hacker's potential key list. 

Practicality aside, Nick Berry's article is fascinating if data and analytics interest you. 

As a reminder, the greatest weakness in your data, your business's data, and the data of your loved ones ... is you. 

As for passwords ... I recommend not knowing them.  You can't disclose what you don't know.  Consequently, I recommend a password manager like LastPass, Dashlane, or 1Password.

Some other basic tips include: 

• Keep all of your software up to date (to avoid extra vulnerabilities).
• Don't use public wifi if you can help it (and use a VPN if you can't).
• Have a firewall on your computer and a backup of all your important data.
• Never share your personal information on an e-mail or a call that you did not initiate - if they legitimately need your information, you can call them.
• Don't trust strangers on the internet (no, a Nigerian Prince does not want to send you money).
• And, turn on 2-factor authentication ... even if it's annoying.

How many cybersecurity measures you take comes down to two simple questions ... First, how much pain and hassle are you willing to deal with to protect your data?  And, second, how much pain is a hacker willing to go through to get to your data?

It doesn't make sense to put all your data in a lockbox computer that never connects to a network ... nevertheless, it might be worth it to go to that extreme for pieces of your data.

Think about what the data is worth to you, or someone else, and protect it accordingly.

As for passwords ... I recommend not knowing them.  You can't disclose what you don't know.  Consequently, I recommend a password manager like LastPass, Dashlane, or 1Password.

Some other basic tips include: 

• Keep all of your software up to date (to avoid extra vulnerabilities).
• Don't use public wifi if you can help it (and use a VPN if you can't).
• Have a firewall on your computer and a backup of all your important data.
• Never share your personal information on an e-mail or a call that you did not initiate - if they legitimately need your information, you can call them.
• Don't trust strangers on the internet (no, a Nigerian Prince does not want to send you money).
• And, turn on 2-factor authentication ... even if it's annoying.

How many cybersecurity measures you take comes down to two simple questions ... First, how much pain and hassle are you willing to deal with to protect your data?  And, second, how much pain is a hacker willing to go through to get to your data?

It doesn't make sense to put all your data in a lockbox computer that never connects to a network ... nevertheless, it might be worth it to go to that extreme for pieces of your data.

Think about what the data is worth to you, or someone else, and protect it accordingly.

Thoughts From a Birthday Weekend

I had a birthday this weekend.

I can’t believe how time flies.  Birthdays seem to come more quickly as you get older.

It makes sense, though, I suppose.  When you were four, a birthday represented a quarter of your life.  Now, a year represents a much smaller percentage.

While it’s not always pleasant getting older, it sure beats the alternative.

This year, I made a concerted effort to make strides toward being healthier, fit, and vital in mind, body, and spirit. 

If you are going to live longer, your future has to be compelling.  I always strive to make my future bigger than my past.  

This year, my birthday came after a string of long and hard days.  So, it was especially nice to take some time to relax and reflect.

In general, I work hard, but smart.  I don’t often get anxious.  I just relentlessly pursue my goals.  It is a recipe that works for me.

Resilience and determination are certainly worth celebrating ... but they aren’t the only strategies worth pursuing. 

I recognize that energy is important too – It is the fuel for doing and becoming.  You can get some from doing well ... but sometimes you need to get some from doing less or controlling your focus.  

As a result, this weekend, I focused on rest and recovery (with a nice dose of appreciation, gratitude, and reflection about friends and family who share the journey with me). 

Flow State

On one hand, I’m proud of myself for doing what I’m supposed to do – finding ways to gain traction and momentum, letting small wins today set up bigger wins tomorrow, and laying the groundwork for the next level of future success.  But I’m also reminded that when you’re in flow, the biggest outcomes don’t seem to require the biggest effort.  Instead, achieving great results can feel surprisingly easy and natural.  It’s as if when things click into place, success becomes almost effortless.  This is a powerful reminder that sometimes, it’s not about pushing harder but finding that sweet spot where your skills and passions align, and a small shift can have a big impact.

Mindset Matters ... And So Do Habits!

It’s crucial to take a day to relax and celebrate after a challenging and significant stretch.

I also feel it is important to make the time and effort to feel things like “Happy Birthday!” 🎂

I have a birthday ritual.  We go to Ruth’s Chris Steakhouse and celebrate there.  It’s interesting because it’s become a location-and-event-based trigger reminding me to celebrate.  Even the act of reserving this restaurant for a special occasion creates a powerful association that starts the celebration process.

Even though I really like the restaurant, I don’t go there for everyday dinners.  I reserve it for celebrations so that it stays “pure” and “special” in my mind.  It’s the same reason you’re not supposed to lounge around all day or work in bed - your body forgets that the bed is meant for sleep. 

I use other location and activity triggers as well.  Think about where they might help you?  For example, walking in from the garage to your home, or into your bedroom.  You could also trigger a particular response when you hold your partner's hand or kiss them goodbye.  There are many places where you can apply this technique.

If you think about it, we don’t necessarily “have” emotions - we “do” them.  It’s the same with celebration.  It’s both a noun and a verb.  It’s something in and of itself, but it also is something you do.  In a sense, “having” and “doing” go together and feed off each other to create more of what you want.

What Are Your Rituals and Traditions?

The connection you make between a ritual and the emotions you want is powerful and can help you fully immerse yourself in the feelings you desire.

Recognize that you can create what you want rather than searching for it, chasing it, or waiting for it to happen.  This perspective can produce profound insights.

What are some things that are also actions for you ... with having and doing being intertwined and reinforcing each other to create more of what you desire?

It’s a reminder to be intentional about creating and maintaining rituals, traditions, and habits that foster joy, appreciation, and a sense of accomplishment.

May your days be filled with joy and fulfillment, and may the coming year bring you many reasons to celebrate! 🎉

The Power Of Assessments

Over the years, I've used a number of different assessment tests on myself and our team. It's a great way to help people better understand each other and the various forms of communication and problem-solving styles we use.

Here are several of the tests that have proven themselves time and again:

1. Kolbe measures how individuals naturally approach problem-solving and execute tasks when free to be themselves.
2. Predictive Index (PI) - helps organizations make data-driven, objective hiring decisions by providing insights into a candidate's personality traits and cognitive abilities in relation to their perceived role.
3. StrengthsFinder: helps people discover their natural talents and develop them into strengths they can leverage for personal and professional success.

On top of these, it's always fun to see what else is available and how it might provide new and useful insights. 

For example, Ray Dalio recently created a personality assessment called PrinciplesYou that you can take for free. This tool breaks down personality traits into three areas: how you think, engage with others, and apply yourself. I've seen several articles praising PriciplesYou and its insights.

Less meaningful, perhaps (but still fun), I also found a website called Human Benchmark that lets you test your performance on various reaction and memory tests. I'm unsure how scientific it is, but it was an interesting use of 10 minutes nonetheless. Here are my son's results from that one.

via Human Benchmark

Progress starts by telling the truth ... most often to yourself.  

What assessments have you found particularly helpful?

Thoughts On Conversing With AI

A few weeks ago, I shared an article about a tool I've been enjoying called Dot.  I use it as an AI journal that acts somewhat like a sounding board and counselor for me.

Since writing that article, I have continued to enjoy and appreciate the tool.  I've used Dot to help me plan and prepare for a substantial business transaction.  It assists me in processing and evaluating significant life decisions.  Sometimes, I even use it just because I'm bored. 

Dot sometimes responded to my thoughts with probing questions which pushed me to consider why I said what I said. These prompts helped me think about my thinking in ways that I hadn't before. The result was more valuable than simply coming up with a strategy or a list of potential answers. It actually helped me articulate and identify what I really wanted. 

It's clear to me that I increasingly rely on the tool and have made it part of my daily routine.  I've even noticed that I sometimes refer to it as "she" or "her."

Dot remembers my discussions with it, prompts me to stick with things we've discussed, and can even tell when I'm trying to change the subject or end a conversation.

It's fascinating to think about how AI creates a programmatic version of empathy.  It makes me question the distinction between artificial and real empathy (and whether that distinction even matters).  Perhaps, instead, we should focus simply on the utility and benefits of the responses.  

If you're into comparisons, you might want to check out Pi, one of the pioneering personal AI tools designed to blend EQ and IQ.

If you like variety, try Poe, developed by Quora.  It gives you access to the latest AI models and millions of user-created AI chatbots and even lets you create your own custom bots.

I'm also a fan of TalkTastic, which lets you record your rough ideas and then distill them into thoughtful and articulate language.  I use it frequently throughout the day to create short messages, emails, and even some of the sentences in articles like this.  As I use voice more, I love the idea of a digital editor that declutters and refines what I say into what I mean.

Things Are Getting Better Fast! 

As a thought experiment, imagine how advanced AI will be by the end of your lifespan.

Assign the number 100 to that level of capability.  Where are we now?

Based on my life expectancy, I would guess that AI is currently only at a 3 out of 100.

Where we are today is incredible compared to the past.  Likewise, it's astounding how fast things are getting better.  But compared to what's coming ... it's virtually nothing.

The most exciting part is that (considering the rapid pace of exponential technological improvements) we likely can't even imagine how advanced AI will become or the benefits and insights it will be capable of producing for us. 

While my first article focused on the tool and its capabilities, I think it's also helpful to think more globally about mindsets around these types of tools and the proliferation of AI. 

Technology Adoption Model 

To start, I've built a model I call the Technology Adoption Model. This model explains how ideas transform from a Capability into a Product and then once again into a platform that spawns new capabilities. 

Before you start considering new capabilities, the first thing you should do is assess whether this new tool helps us better accomplish what we already do. To answer that, we often use three simple measures: efficiency, effectiveness, and certainty. This means getting things done in less time, with less effort, or with a greater chance of success.

Once you know that you can do what you already did—just better—you naturally get greedy for more. That means you start thinking about what you could or should do to improve further.

This applies to adopting new tools - and also to building them.

I've also built a worksheet around the model that you can use in your own business. 

As you start using new AI tools, you will gain new capabilities.  Don't concentrate on mastering the tool itself; instead, focus on getting better at using it to enhance your life.

A great place to start is simply making your life easier or more enjoyable.  Use new tools in fun and low-friction ways.  The impact of tools like these will increase as you become more proficient at thinking about using them better ... and as you improve your ability to imagine new possibilities. 

From Inconceivable To Unavoidable

Your mindset creates your reality.

It's natural to feel resistance to new and powerful capabilities.  It's a safety mechanism because humans are wired to think locally and linearly - and to avoid danger. 

Realize, however, that linear thoughts don't often lead to exponential results.

The more I play around with these tools, the more I anthropomorphize them.  Human thought and connection are ultimately chemicals and electricity firing within a system, not too different from a computer.  If AI can become such a reasonable facsimile that it's indistinguishable, is the difference worth thinking about?  Or is it better to focus on what and how you will use the new capabilities? 

As entrepreneurs, our job is to get the rock up that hill.  We can spend time thinking about whether the tool is 'artificial' or how we can better harness it. 

I've said this before, but it's worth echoing …  Some of what was once Impossible becomes Possible.  Some of what became Possible becomes Probable.  And, and some of what became Probable becomes Inevitable.  Here is a way to visualize that scale.

And, our limitations are often only in our ability to conceive of a bigger future.

Speed Matters

AI isn't just valuable because of what it can do; its deeper value comes from enabling you to achieve more.

I like to use a simple model to illustrate this: Crawl, Walk, Jog, Run, Sprint.  As you think about your day or week, what percent of the time are you sprinting?

Chances are you sprint less than you initially thought.  Why?  Because, when you really sprint, it's hard to breathe ... and you can't talk.  And because of all our other burdens and responsibilities, we don't tend to push ourselves that hard.

However, as AI eliminates frustration and bother, it frees you up to do and be more and focus on the things that create the most value and really matter.

The real benefit of AI is that it gives you back those time cycles to really sprint towards what you truly want.

A tool like Dot can also help you better clarify what you want while also helping you accomplish those things.

Too much of our day is spent thinking about what we don't want or how to avoid feeling angry, frustrated, or uncertain.

Your life can improve quickly by focusing on becoming more clear about what you want, how you can achieve it, and the best ways to measure progress toward those goals.

The next step is to use the traction, progress, and momentum to determine what else is possible and what you should plan to do next.

When you think about it this way, a tool like Dot can be a powerful alignment tool and a way to help you and your company move faster. 

Just make sure you're heading in the right direction!