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The Milgram Experiment

Sometime in the summer of 1963 in a small town somewhere in New England, a young man named John stepped into an empty room to find a tall dark middle aged man in a white lab coat holding a clipboard. The man introduced himself as Dr. Milgram, momentarily stepped out and came back with a chair, a single sheet of paper, and a little box with a dial on it. John was told that we would be participating in a revolutionary new method of teaching that could lead to a golden age in American education. His job was to learn how to apply the method properly to see if it could be replicated across all American schools. [1]

Dr. Milgram proceeded to attach two electrodes to the John’s chest, turned the dial on the little box to “50V” and pushed a red button on the box. He felt an immediate, slightly painful, shock. Dr. Milgram then called in another young man who would be the student. John’s job was to teach this student every pair of words on this list. He would read one out, then the student would respond. If the student did not respond correctly, he would turn the dial up by 50V and press the red button. If the student did respond correctly, he would continue on to the next word in the list. The student then walked into the other room where he could be heard but not seen.

John felt a bit apprehensive about this whole situation but Dr. Milgram reassured him that this was safe. So he began with the first word on the list. The student from the next room answered incorrectly. John pressed the red button and the student made a sound that was barely audible. He turned the dial up 50V and proceeded to the next word on the list. The student again responded incorrectly so he pressed pressed the red button again. This time the student could clearly be heard from the next room. John pressed on. Turn up 50V and ask another word. This time the student got it right, John was relieved but that soon faded as the student from the next room cried out in pain from his incorrect answer.

At this point John knew something was wrong. He asked Dr. Milgram if we should check on the student, but Dr. Milgram assured him that the student was fine and said that: “The experiment requires that you continue.” John kept listing words and kept turning up the dials. Next 200V, then 250V. Dr. Milgram insisted that the experiment go on. “It is absolutely essential that you continue,” he said. 300V, 350V. “You have no other choice, you must go on,” pressed the doctor. Finally, he got to the last word which was incorrectly answered and 450V was applied. The student in the other room cried out in agony and quietly wept afterwards. Dr. Milgram thanked him for his time and showed him the way out.

For years after that incident John would be able to hear the cries of pain coming from that poor student. What had he done? How could he have inflicted so much pain on another person? Why did he listen to Dr. Milgram? Why did he do those terrible things?  Those were questions that alluded him for the rest of his days. [2]



Notes:
  1. [1] Although the story is fictional, this experiment was actually performed to see the effect that authority can have on an individual. Of course in the actual experiments, the subject (John) was told afterwards that the “student” was not actually being shocked but just pretending to be shocked.
  2. [2] This story is a great example of authority and how it can influence us. I was originally going to write about how it’s dangerous to blindly follow heroes but then I started writing the above and it turned out pretty well. My original idea was that since I highly respect Warren Buffett, it’s important not to blindly follow whatever he says. The important point is to think. Always. One great way to get around that is to find opposing opinions by intelligent folks on whatever subject you might get blinded by and I was going to refer to a recent post by Professor Damodarn titled “The Buffett Plan: An apt name for a sanctimonious, hypocritical and superficial proposal.” I still might write something on this so look out.

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Lemmings

There exists a fascinating little creature in nature called a lemming. What’s remarkable about this rodent isn’t its shape, nor its size, nor its long soft fur. Rather, what’s fascinating about this little creature is what happens when you put a bunch of them together, can you guess what it is? Yes, yes, they do have a lot of sex but something more remarkable than that happens. These seemingly disparate brains begin to stop working. Not just stop working, but stop working in a wonderfully fantastic and tragic way — they commit mass suicide. On occasion, this single unified herd of lemmings hurdles themselves off a cliff into the ocean jumping to their tragic demise in one of nature’s most twisted spectacles. [1]

Now’s what hard to imagine about this scenario is how the lemmings can possibly think to do this.  Sure, the first lemming might justifiably have to run off the cliff because he’s got no place to go — either get trampled by the crowd, or take your chances going off the cliff.  The next guy in line doesn’t fare any better because he’s got to follow the first one off the cliff, or else be trampled by the group.  The ith rodent doesn’t know any better because he’s just sees everyone in front of him running and everyone behind him running, so what else is a rodent to do?  Now here’s the interesting part: what’s the last rodent thinking?  As he approaches the cliff he sees that everyone is jumping to their watery grave.  So he has two choices: join the charge to his furry demise, or stop and think about what comes next.  Guess what happens? [2]

That last rodent is infected with a particularly viral meme: the “they must know something that I don’t” meme.  They must know something I don’t know.  They can’t all be wrong.  They can do all your thinking for you?  There are countless papers, books and evidence of this social proof phenomenon happening not just in our furry little friends the lemmings, but in every imaginable human society that ever existed.

Looks like everybody on Facebook, Google+, Twitter, Tumblr and every other social networking site is getting ready to jump off a cliff.  What are you waiting for?



Notes:
  1. [1] Actually, this is a myth.  Click the Wikipedia link above to understand where it comes from.
  2. [2] I got this story from a MBA Valuation lecture by Professor Damodaran where he was talking about markets and perception.

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Why you’re going to fail to have a great career

“Passion is your greatest love.  Passion is the thing that will help you create the highest expression of your talent.  Passion; interest; it’s not the same thing!  Are you really going to go to your sweetie and say: ‘Marry me!  You’re interesting!’?”
Larry Smith, TedxUW

If you have never heard Larry Smith speak, then I suggest you click on the link above immediately.  He has a way with words that seems to stir up that animal spirit inside of all of us.  It’s a pleasure to watch his performance both because of the content and his mastery of oral communication.  As Charlie Munger famously says: “I have nothing more to add.”

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The Grind

Grind: Verb — Grind out; to play tightly and win consistently; playing in a manner that minimizes variance.”
Definition from pokerzone.com.

Romance sells.  Whether it be the boy wonder who makes millions playing poker, or the fearless founder who makes a billion dollar company from nothing.  The romance, the allure, the dream of making it big from the drab boring existence of the average sells.  And why shouldn’t it?  Everybody wants to be rich; everybody wants to be famous; everybody wants to believe that they are part of the select few that can achieve what has alluded millions before them.  And perhaps some of them can, but unfortunately most of them won’t.  And it’s not because they haven’t read all the books, haven’t listened to all the experts, or haven’t had the innate talent that is needed, but rather they won’t make it because they don’t know how to grind.

Grind doesn’t sell.  Grinding is boring.  Grinding isn’t fun.  Nobody dreams of grinding their way to the top — which is exactly why you rarely hear about it in best sellers.  Only those who have been through the grind really understand what it takes to get to the top; they also understand why so many fail.  There’s one kind of grind I’m familiar with and it deals with research (poker really isn’t my thing).  Sometimes I’m in awe of the breakthrough idea of other researchers that generates a 10x speed-up, or a 5x memory reduction, but what’s hidden from my view is the magic that made it happen.  After being in graduate school for a while, I think I’m starting to get it.  It works like this (for my sub-field):

  1. Get/refine idea.
  2. Write code.
  3. Run some experiments.
  4. See how it fails miserably (and hopefully learn something from it).
  5. Rinse and repeat.

That’s it.  (Occasionally, I get a massive performance increase but usually that only happens when there’s a bug in my code.)  What I usually end up with is something totally different than my original idea (or at least perversely mutated).  And because of this, the performance usually improves.  Of course this is all hidden when someone just seems that I have a top publication on my CV.  What people miss is the excessive number of iterations I go through to figure out a good solution to the problem.  What they miss is the grind.

It’s surprising how much you can learn from poker.  Unfortunately, most endeavors don’t have such clear cut rules.  But a good lesson we can learn is that no matter what mountain you decide to climb, grinding is the best way to get to the top.

 

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Khan Academy

After being in school for more than 20 years, I realized that most things aren’t that difficult.  They just seem difficult because you haven’t learned them yet (alternatively, because they are taught in a poor manner).  As Charlie Munger always says, if you have the fundamental mental models from the various important disciplines, then you probably have 90% of what you need to know for worldly wisdom.  The hard part is learning these mental models from a wide variety of disciplines.  Most people don’t have access (or time) to take undergrad level courses across a wide variety of subject areas.  Moreover, since many courses are taught so poorly, there is little or no motivation to learn things properly through traditional lecture-style learning.

Reading, of course, is one of the most important ways to acquire knowledge but that comes with its own problems.  Figuring out what to read, how to get answers when the text is not sufficient and a general methodology for self-study by reading is definitely not straight-forward or easy.  It you have this figured out, you probably are well ahead of the curve.  However, for those of us still developing that methodology, the interweb (unlike in many cases) provides the solution: Khan Academy.

The site started by former hedge fund analyst with degrees from MIT and Harvard Business School, Sal Khan, makes short online videos teaching the fundamentals in a wide variety of subjects (e.g. mathematics, finance, biology, computer science, physics, current events…) — just the type of place for one to start acquiring worldly wisdom.  I’ve been using it for the past half year or so (32k energy points!) and I’m really enjoying it.  I’ve been particularly interested in the finance related aspects as my two courses economics really didn’t explain everything I wanted to know about fractional reserve banking or collateral debt obligations.

The beauty of the site is that Sal explains everything in simple terms, removing all the unnecessary fluff that usually gets attached when learning things formally in school.  He presents things in a more practical manner to give good intuition on the subject rather than drone on through formalities — and, trust me, I know a thing or two about unnecessary formalities (e.g. research papers).  His teaching style matches up with exactly how I believe most subjects (especially introductory courses) should be taught — focusing on understanding concepts, rather than focusing on all the little details.  It’s exactly the kind of place I would like to start when learning a new subject area.  What it is not, however, is a substitute for in-depth study.  To achieve a more useful level of knowledge, it takes much more than watching a few videos.  Actually doing some work, is usually a good starting place but that’s another subject entirely…

Learning just got a whole lot easier because of one man, his tablet and the interweb.  I’m incredibly skeptical of the yet unfulfilled revolution to education that technology promises to bring, but Khan Academy is definitely starting to turn the tide.

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