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8 Books That Will Make You Smarter Than 98% of People

By theMITmonk

Summary

Topics Covered

  • Heroes Often Lottery Winners
  • Smarter Minds Resist Rethinking
  • Treat Decisions as Bets
  • Intelligence Traps Smart People

Full Transcript

Most people read books to get smarter.

They get more informed, but their life stays exactly the same. But a few books make you dangerously smart. They rewire

your brain and change how you think, how you decide, and how you see what others don't. I've been a CEO and board adviser

don't. I've been a CEO and board adviser to billion-dollar companies. And I've

distilled hundreds of titles down to four that function as a toolkit for a self-taught genius. But first, something

self-taught genius. But first, something more valuable than the list itself, a framework for finding the books that actually rewire you. Every book is an

investment of time and attention. Most

of them entertain you, some inform you, but a very few change you. Here's how to tell the difference. Before you commit to a book, ask three questions. I call

them the three gates. Gate number one, the operator. Will this book change how

the operator. Will this book change how you think or just change what you think?

If a book can install new mental moves, new ways to see, to reason, to decide, then it'll make you a better operator because it will bring the kind of system

upgrade that we're talking about here.

Gate number two, the challenger. Does

this book make you uncomfortable? Does

it challenge your beliefs? You know, the best books don't confirm what you know.

They dismantle everything you're certain about page by page permanently. If you

finish a book and you feel validated, you've learned nothing new. And gate

number three, the fire alarm. I always

ask myself, will this book stop me from doing dumb things with confidence? Will

it prevent an expensive mistake? Great

books hand you tools that stop you from confusing confidence from competence. If

a book passes any of these three gates, it will upgrade your inner operating system. Now, of course, I love books

system. Now, of course, I love books like Grit or Atomic Habits or So Good They Can't Ignore You. Great books.

They're brilliant for building tactics and changing your daily behavior. We

want to go beyond just behavioral shifts. We want to upgrade and scale our

shifts. We want to upgrade and scale our entire way of thinking. Most books will change your speed. These four will change your engine. Book number one was

a gut punch to me. It forced me to ask a terrifying question. Are my heroes

terrifying question. Are my heroes visionaries or just lottery winners?

Nasim Talib talks about it in our first book, Fooled by Randomness. He shows why randomness manufactures geniuses and it changes the way we think about outcomes.

Look at the math. Imagine you invite 10,000 traders from Wall Street to a stadium once a year. They flip a coin, heads, they double their money. Tails,

they go bust. They go home. After 1

year, half of them will go home. 5,000

will come back. If you keep doing this for 5 years, then 5 years later, 312 of those traders will be left in the stadium. They won all five times. Now,

stadium. They won all five times. Now,

these 312 people will be on the cover of Forbes. They'll write books. They'll

Forbes. They'll write books. They'll

sell you systems. They'll start a YouTube channel. But are they masters?

YouTube channel. But are they masters?

No. They are a statistical certainty.

They didn't beat the system. They were

produced by the system. That's why

Talup's point is chilling. You cannot

distinguish a master from a lucky idiot simply by looking at their track record.

At the AI company where I was CEO, we were one of the fastest growing firms in the US. I was surrounded by some of the

the US. I was surrounded by some of the smartest minds, exceptional talent, but we also got a once in a decade tailwind we didn't control. The internet was

overwhelmed at that moment with the cyber threat of fake transactions and bots that acted like humans. It had

become an existential crisis for the internet. So, we were the right company

internet. So, we were the right company at the right time. Was our team exceptional? Sure. Did we work our butts

exceptional? Sure. Did we work our butts off? Of course. But without that

off? Of course. But without that existential threat, without that tailwind, all of my visionary strategies would have been a forgotten footnote somewhere. Because we often confuse a

somewhere. Because we often confuse a tailwind with our own talent. This is

called the survivorship bias. Stop

trying to be a better forecaster of your future. Start trying to be less fragile,

future. Start trying to be less fragile, more resilient to randomness. Now, what

if you've read this book already? Then

the graduate level upgrade would be a book from a Nobel Prize winner, Daniel Conaman, Thinking Fast and Slow. Conaman

shows you exactly what's happening in your brain when you were being fooled by randomness. His book shows the exact

randomness. His book shows the exact wiring. System one that makes you jump

wiring. System one that makes you jump to conclusions immediately and system two which helps us avoid those mistakes.

How do you make all of this actionable?

Here are two steps. First, the luck labor audit. Every Friday, audit your

labor audit. Every Friday, audit your wins into two columns. Column A, labor.

What did I control? And column B, luck, timing, tailwinds. If column B is empty,

timing, tailwinds. If column B is empty, then your ego is ruining all the driving and you are headed for a crash. Second,

the wreckage tour. Now, this is my favorite. Stop studying just the

favorite. Stop studying just the survivors. Find the people who made your

survivors. Find the people who made your exact bet and didn't make it. Learn from

them. Because if your plan only works in the commies, it's not a plan. It's a

prayer. Book number two is about the biggest mistake successful people make.

When you win, you stop searching and you somehow start defending what you already know. Adam Grant calls this out in his

know. Adam Grant calls this out in his book, Think Again. This is our second book. The smarter you are, the harder it

book. The smarter you are, the harder it is to change your mind. There was a study done on tax professionals.

Researchers gave complex tax code and problems to both junior students and seasoned CPAs. When the rules changed

seasoned CPAs. When the rules changed just a little, the experts failed three times more often than the students because the experts were so certain. The

more you know, the less you see. I call

it the proficiency prison. And the case studies are everywhere. Kodak invented

digital photography. They had the technology. They had the talent. They

technology. They had the talent. They

had the resources. But they buried it.

Why? Because it threatened their film business. And Kodak's no more.

business. And Kodak's no more.

Blockbuster had a chance to buy Netflix for $50 million and they passed. Now,

none of these executives were stupid.

They were just trying to protect yesterday's wins. They were trapped in

yesterday's wins. They were trapped in their own proficiency prison. We wear

three masks when we don't want to change our thinking. the preacher, the

our thinking. the preacher, the prosecutor, and the politician. The

preacher defends the belief like it's a scripture. Prosecutors will defend their

scripture. Prosecutors will defend their belief by spotting flaws in others. And

politicians, well, they will say whatever the room wants to hear. Now,

what do you do to take these masks off?

Be a scientist. Treat your beliefs as hypothesis. Run experiments. Update your

hypothesis. Run experiments. Update your

beliefs based on data. Now, if you've read this book, then the graduate level work is Innovator's Dilemma by Clayton Christensen. That book shows you exactly

Christensen. That book shows you exactly why companies love to stay in their proficiency prison. Intel dominated the

proficiency prison. Intel dominated the computer chip market for decades. They

were so busy protecting that business, they completely ignored the GPU revolution. Today, Intel is roughly a

revolution. Today, Intel is roughly a $220 billion giant. But Nvidia is a $4 trillion ecosystem. And that is what the

trillion ecosystem. And that is what the innovator's dilemma is all about. The

action plan here, there are three mindsets that help me a lot. scientist,

stranger, startup. First, the scientist mode. Take your strongest current belief

mode. Take your strongest current belief and rewrite it as I currently believe X.

But it could be wrong if XYZ it turns on the scientist mode on demand. Second,

the stranger mode. Try to explain your strategy or plan to someone outside of your industry, someone who doesn't know anything about it. Where they get confused is exactly where you need to

focus. And finally, the startup mode. I

focus. And finally, the startup mode. I

never hire a seale executive in any company that I work with until I ask them this very question. If you had a million dollars and all the technology in the world, what would you build to

take down your own company? If they can map out their own destruction, they're scientists. If they defend the status

scientists. If they defend the status quo, they are just priests. The

scientist is never certain and the priest is never curious. The third book completely changes how you judge your own decisions. Annie Duke spent 20 years

own decisions. Annie Duke spent 20 years being a world-class poker player. In her

book, Thinking in Bets, she talks about this interesting way of thinking. Treat

every decision like a bet. When I was coming to Boston from Mumbai for my master's study, the university had only given me a conditional scholarship

because my scores were okay. They

weren't great. So they said, you know, pay for the first semester yourself and teach undergrad mathematics at the same time. And the department said, you know,

time. And the department said, you know, if you survive, we'll pay for the rest of the graduate program, and if not, you have to pay out of pocket. And I said, sure. What they didn't know was that if

sure. What they didn't know was that if I failed, I had no way to pay for the rest of the program. I thought in terms of bets. I outlined my strengths, my

of bets. I outlined my strengths, my weaknesses. I made a list of things that

weaknesses. I made a list of things that could go wrong, and I calculated my odds. There was about a 30% chance that

odds. There was about a 30% chance that I would fail. I was okay taking that risk. I bought a one-way ticket from

risk. I bought a one-way ticket from Mumbai to Boston. It wasn't bravery. I

really didn't have a plan B. The only

plan was to focus on increasing my odds every day. Now, of course, the bet could

every day. Now, of course, the bet could have gone the other way. But the point is to know exactly what is at risk and whether you have a plan to manage that risk. And if you've read this book

risk. And if you've read this book already, the graduate version is super forecasting. Philip Tetllock studied

forecasting. Philip Tetllock studied 25,000 predictions over decades and found that the most accurate people on Earth or the super forecasters don't

think in terms of yes or no. They think

in terms of bets, odds, possibilities, probabilities, and they update that number every time new data hits the wire. They aren't trying to be right all

wire. They aren't trying to be right all the time. All they're trying to do is to

the time. All they're trying to do is to be less wrong after every iteration. So,

how do you put this in action? The

simplest one is to decision journal.

Just do it for 30 days. I did it. Super

helpful. For the next 30 days, for example, before any major decision or a pivot, write down three things. One,

your confidence level, 0 to 100%. Number

two, what you know, what you don't, and what evidence will change your odds. And

number three, write down three reasons why you could be wrong about this decision. And track that for 30 days.

decision. And track that for 30 days.

Your emotions will get quieter. Your

thinking will get clearer. When you

start thinking in bets, you stop reacting and you start revising. Book

number four is the most dangerous one on this list. Everything we have covered so

this list. Everything we have covered so far leads to this single question. What

if your intelligence itself is the trap?

David Robson spent years studying the relationship between intelligence and cognitive failure. And the book he wrote

cognitive failure. And the book he wrote was the intelligence trap. He shows that smart people have this special failure mode because they can rationalize anything and they become their own

enemies because they become their own defense attorneys. Most people hit a

defense attorneys. Most people hit a wall and question themselves. Smart

people hit a wall and question the wall.

And I've learned this the hard way. At

my first job after coming out of MIT, I was the head of marketing for a global company. And in hindsight, I did not

company. And in hindsight, I did not build an advisory board of mentors. And

I did not ask dumb questions early on.

And when the company hired a new president, he could see that I wasn't ready for a promotion. So he brought in an SVP of marketing instead of promoting me. And in hindsight, I think I had

me. And in hindsight, I think I had trapped myself in my own narrative about my capabilities, about my competence.

And that's a very subtle trap. The book

helps you avoid such self-justification.

The one drill that helps me the most is what I call the anti-mentor. So before

any major decision, ask one person in your life whose judgment you trust to argue the opposite case as hard as they can. Tell them don't be polite. Try to

can. Tell them don't be polite. Try to

kill the plan on paper. And if no one in your life can do that, that's also a great problem to solve. The second

practice is the empty cup. Before your

next highstakes meeting, write down three naive questions you would be embarrassed to ask and go ahead and ask.

Anyway, there is a concept in the Zen Buddhism called Shosin, beginner's mind.

The expert's cup is always full, no room for anything new. The beginner's cup is always empty, ready to receive everything. I saw this on a train ride

everything. I saw this on a train ride many years ago. I remember we were going to New York City from New Jersey with our two kids and they were little, seven

and four. The train has to go through

and four. The train has to go through this tunnel because it goes under the river and it was pitch dark outside and both kids were so incredibly excited to

see it. They just started giggling with

see it. They just started giggling with joy. Pure shin, pure magic. And that

joy. Pure shin, pure magic. And that

made me think. I took that train and went through the same tunnel twice a day. And never even once was I

day. And never even once was I overwhelmed with this feeling of sheer joy. As we grow old, why do we treat our

joy. As we grow old, why do we treat our sense of wonder as weakness and embarrassment? Why treat our curiosity

embarrassment? Why treat our curiosity as if it's a curse? These books will help you reset your system so you can answer those questions. But the ultimate

system upgrade isn't adding more to your cup. It's your ability to go through

cup. It's your ability to go through that dark tunnel and still find magic in it.

If you like this video, don't forget to subscribe and check out my most recent video here. Thank you and I love you.

video here. Thank you and I love you.

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