Today, I caught up with a founder friend who sold his software company for a few hundred million dollars. As entrepreneurs do, we started talking shop about business ideas and what each of us is working on. I pitched the idea of the “book library.”

I’ve talked to him about this project as it’s evolved throughout the year, and he’s been skeptical each time—rightfully so, because I wasn’t clear on many things. Today was different. He listened as I described the MVP I was building. He immediately got it. He had some great questions and great feedback.

One big point he brought up was that though entrepreneurs often have hair-on-fire problems and want ideas about how to solve them, there’s also a desire for ideas about the tactics of executing solutions. He gave an example: needing to reduce burn. The solution could be to significantly reduce the workforce (which he’s done). Most entrepreneurs don’t do that often, so they’d want to understand the nuances of executing the reduction in a way that treats employees as well as possible. To fill this tactical knowledge gap, most entrepreneurs learn from others who’ve recently made a reduction or botch it and learn from their own mistakes.

His points were valid and got me thinking. There’s a difference between tactical learning and strategic learning. Tactical learning involves learning what’s working in the current environment. And tactics are constantly evolving. Strategic learning is about learning the concepts and frameworks that solve problems that all entrepreneurs encounter. Strategies do evolve, but they tend to be more timeless. The bid ideas around marketing haven’t changed in decades, but how those strategies are executed continuously evolves. Marketers advertised heavily in newspapers forty years ago, but today it’s Google and Facebook.

I wasn’t aiming to provide entrepreneurs with a library of tactical wisdom. I feel like many resources, such as YouTube, make tactical learning accessible. But my friend got me thinking. The application of wisdom is a big thing entrepreneurs struggle with. Am I overlooking an opportunity to bring massive value to entrepreneurs by not including tactical wisdom? I’m not sure now, but I want to think about this more, with an open mind, during the holidays.

In 2023, I set Thanksgiving and Christmas reading goals: to read an 800-page book and then a pair of books that totaled about 700 pages. I didn’t hit either goal deadlines; I finished the books a few days late. But I did finish them, so I was happy!

In hindsight, I was ramping up my reading in a major way and then developing a daily reading habit. That set me up for 2024, during which I’ve read one book a week on average and started my book-related personal project. I had no idea this would happen when I set those goals in 2023, but I didn’t see much downside and went for it.

I want to repeat that this year by setting a goal for Christmas (setting a Thanksgiving goal slipped my mind)—but not reading. I want something challenging but different than reading. I want to get back to writing blog posts series on books I’ve read and creating podcasts from those series. Hopefully, I can form a habit that will be useful in 2025.

Some background for context: I did blog and podcast series over the summer. For example, see the Ted Turner series here and here (episodes 98–103). Writing a series of blog posts about a book required that I create a digest of the book, which took a ton of time. Recording and editing the podcast did too. It wasn’t sustainable, which led to my stopping after my summer experiment. Over Christmas, I’ll have more time.

My goal this Christmas is around writing. I’ll create a blog post series (five or six posts) about a book I’ve read, which means I’ll need to create a digest too. I’d ultimately like to create a backlog of blog post series and podcasts I can publish on a schedule. I’m not sure how I’ll do that, but creating this blog post series and parking it for future use seems like a good place to start.

That’s it. That’s my Christmas writing goal. Wish me luck.

I was chatting with a friend about how many books the “book library” MVP would need to include to be useful to entrepreneurs. He was thinking thousands or tens of thousands. However, I think it’s much less than that if you consider the number of books a person can read on their own. I’d imagine the average entrepreneur would get value from the MVP if a few hundred or even as few as one hundred books were included.

Let’s look at some numbers to demonstrate this, using my experience with this project as an example. Since February of this year, I’ve read 50 books, mostly biographies. By the end of the year, I aim to read 52 books, 1 per week on average.

Assuming I keep up that pace indefinitely, here’s how many books I’ll have read over various periods:

• Year 1: 52
• Year 2: 104
• Year 3: 156
• Year 4: 208
• Year 5: 260
• Year 10: 520
• Year 15: 780
• Year 20: 1,040
• Year 30: 1,560
• Year 40: 2,080
• Year 50: 2,600

I could read about 2,600 books at the absolute most, and that’s over 50 years. Even cracking 1,000 books would take me 20 years. And that’s reading a book a week, which my friends and family think is aggressive.

So, let’s say a founder reads half as fast: 2 books a month, or 26 books a year. Take all those numbers and cut them in half: 4 years to reach 100, 19 years to reach 500, and 38 years to reach 1,000.

Considering these figures, I think the “book library” could be hugely valuable to myself and other entrepreneurs. If I could use this tool to access the wisdom in a few hundred biographies to help me overcome hurdles, that would be the equivalent of several years of reading a book a week to acquire the same wisdom (assuming I remembered all of it). If the library included 1,000 books, it would be like accessing 20 years of reading.  

I love reading. It’s my favorite way to learn. But it’s not a time-efficient way of learning. Reading is powerful for entrepreneurs perpetually short on time and always looking for solutions to pressing problems, but it’s not a time-efficient problem-solving tool.

I’m excited about the value this tool can offer to entrepreneurs. It could be a great learning and problem-solving tool for entrepreneurs—and one that’s time efficient. It doesn’t need thousands of books to be valuable when it launches. A few hundred or even a hundred could give entrepreneurs access to the wisdom they would otherwise have to spend several years reading books to acquire.

Reading is valuable and something I plan to do as long as possible. I don’t want this tool to replace reading, I want it to complement it by pointing entrepreneurs to the right information in the right book at the exact time they need it.

I’ve been playing with NoteBookLM for six months or so. I’ve been really impressed with the product since its launch. Using your own documents as AI’s only source to pull from to answer your questions is powerful. Citations to AI’s pinpoint sources are provided in the responses, so you can fact-check. It’s like having a second, more powerful brain, which I love.

The product took off like wildfire when Google rolled out the audio overview feature, with which you can create a podcast featuring a conversation between two people based on the notes you upload. Last week, the company released a paid version, NoteBookLM Plus, for $20 per month and NoteBookLM Plus enterprise for large companies. Many other updates were also made.

One of my action items on this week’s accountability update is to evaluate the updated product and paid features. I’ve been playing around with it this week, and overall, I’m impressed with the updates. I think Google has a smash hit on its hands with this product. It’s going to bring personalized AI to the masses.

One thing I’ve been looking at hard is the UI update. The screen is divided into three sections: sources, chat, and studio. Sources and chat are straightforward—just what they sound like. Studio allows you to access the functions you can use to generate content (such as audio overview).

I wasn’t sure what to make of the UI at first glance. But after playing with it, I like its functionality. Because it shows the three-pane window on one screen, the product is much easier to use. I don’t have to switch between screens. I can minimize or expand each section as needed. And I can choose to expand information from all three sections if that’s helpful to my workflow.

The UI might not win style awards, but it wins on function. I think the NoteBookLM team is on to something with this new UI, and I bet we’ll see more AI applications borrow from it.

In case you’re interested in learning more about this UI change and seeing the UI in action, here’s a tweet from one of the founding NoteBookLM team members.

This weekend, I shared with a friend what I learned about psychology from rereading The Warren Buffett Way by Robert Hagstrom. One of the things he found interesting was the concept of impetuosity and how it negatively impacts investors.

Impetuosity is the tendency to act quickly, without thinking about the consequences. It can be considered a casino mentality—an itch to go into action. You get caught up in what other people are doing and place a bet or make an investment without taking time to think it through.

Impetuosity can result in investors making bets when the probabilities are against them, upsides are low, and downside risks are high.

This section of the book reminded me of 2020 and 2021. ZIRP made investors comfortable paying high valuations for a growth company. Early-stage venture capital deals were getting done in a few days with limited diligence. In 2022 and 2023, companies that raised at these high valuations and didn’t grow into them struggled to raise capital. Some raised down rounds with brutal terms. Some didn’t make it.

Looking back, it was a period of impetuosity. Investors were doing deals they otherwise wouldn’t have because of what other investors were doing. Founders were raising at sky-high valuations because other founders were. Many didn’t think about the long-term consequences. They were caught up in the hype, doing what seemed normal.

Some founders and investors were aware of impetuosity and recognized what was happening. They took note and acted differently. The shrewd investors were selling assets at peak prices, not buying. And the shrewd founders were raising reasonable sums at valuations that wouldn’t hinder future fundraising, or they were selling their companies outright at peak multiples.

Hagstrom details how Warren Buffett and Charlie Munger avoided impetuosity. The most important thing they did before making an investment was calculate the probability that it would be favorable for them. If it wasn’t favorable, they continually took in more information and monitored the situation. They had the patience to wait until the odds were in their favor, which reduced their risk of losing money. And if the odds tilted in their favor, their research and calculated probability gave them the confidence to bet big even when others were doing the opposite.

Their use of facts and probabilities helped them act counter to the crowd and overcome impetuosity.

Current Project: Reading books about entrepreneurs and sharing what I learned from them

Mission: Create a library of wisdom from notable entrepreneurs that current entrepreneurs can leverage to increase their chances of success

Cumulative metrics (since 4/1/24):

• Total books read: 41
• Total book digests created: 15
• Total blog posts published: 252
• Total audio recordings published: 103

This week’s metrics:

• Books read: 1
• Book digests created: 0
• Blog posts published: 7
• Audio recordings published: 0

What I completed this week (link to last week’s commitments):

• Finished rereading Robert Hagstrom’s The Warren Buffett Way, a biography about Warren Buffett’s investing framework and psychology  
• Linked popular blog posts written about the same book using related lists
• Updated descriptions of popular blog posts
• Identified a method to compile a founder’s journey from multiple sources and communicate it digestibly
• Received feedback on my draft taxonomy
• Received input and ideas from a developer who built a project like the “book library” MVP
• Identified technologies that can help with building challenging features
• Completed code to parse data according to a schema and populate database fields (my developer friend led this effort)

What I’ll do next week:

• Read a biography, autobiography, or framework book
• Create a list of potential metrics for weekly updates that better reflect this project
• Review data set in Looker Studio
• Experiment with ways to visualize data in Looker Studio
• Identify root cause and fixes for data set quality issues
• Evaluate NoteBookLM Plus
• Update UI sketches based on learnings
• Share taxonomy draft with one person
• Continue linking blog posts about the same book
• Continue updating descriptions for blog posts about the same book
• Generate ideas for a methodology for creating blog post titles using data from Google on top-performing posts

Asks:

• None

Week two hundred forty-six was another week of learning. Looking forward to next week!

Current Project: Reading books about entrepreneurs and sharing what I learned from them

Mission: Create a library of wisdom from notable entrepreneurs that current entrepreneurs can leverage to increase their chances of success

What I struggled with:

• No struggles this week.

What I learned:

• Matching to existing data sets that have unique identifiers is a good way to start building a database about people and companies from scratch. It reduces the number of duplicate records.
• This summer I published 100 podcast episodes about autobiographies and biographies I was reading. To learn, I wanted to get reps quickly. To prepare for those episodes, I distilled the books into a series of blog posts. Analytics show that my series on Ted Turner, Henry Singleton, Ed Thorp, and Jim Simons are the most popular. I have 1700+ blog posts, but most visitors are for the blog post series I did this summer. I need to do more of this kind of post.
• Looker Studio is a good business intelligence tool to easily display data, especially from a database.
• Many of the AI thinkers are open to chatting about new projects. I cold emailed one of them, and we chatted this week. He was open to sharing how he built his latest project and even showed me his database. Builders like connecting with other builders and sharing their projects. Cold outreach works. I’ll do more of this going forward.
• Some AI models trained on books without permission by using the infamous Books3 data set (article).
• NoteBookLM released a paid tier and an enterprise version this week via NoteBookLM Plus (article). This could be game changing and get people more comfortable using their own source documents with AI, especially for learning.
• NoteBookLM also released the audio interactivity feature. You can listen to a podcast generated using the source documents you uploaded and interrupt the podcast mid-play to ask it questions (article).

Those are my struggles and learnings from the week!

I’m wrapping up The Warren Buffett Way by Robert Hagstrom for the second time. The first time I read it last year, I got a ton of information about the mechanics of how Warren Buffett invests. This time, I’ve gotten just as much, but more around psychology and mindset. It’s interesting how the book hasn’t changed, but what I got from it changed because what I’m interested in has changed.

The book helped me understand how a rational temperament is Buffett’s main competitive advantage. Here’s a passage that stuck with me:

The cornerstone of rationality is the ability to see past the present and analyze several possible scenarios, eventually making a deliberate choice. That, in a nutshell, is Warren Buffett.

Speaking to students at the University of Seattle, Buffett was asked how he got where he is and how he amassed such a large fortune. His response was thought provoking:

Buffett took a deep breath and began:

How I got here is pretty simple in my case. It is not IQ, I’m sure you will be glad to hear. The big thing is rationality. I always look at IQ and talent as representing the horsepower of the motor, but that the output—the efficiency with which the motor works—depends on rationality. A lot of people start out with 400-horsepower motors but only get 100 horsepower of output. It’s way better to have a 200-horsepower motor and get it all into output.

So why do smart people do things that interfere with getting the output they’re entitled to? It gets into the habits and character and temperament, and behaving in a rational manner. Not getting in your own way. As I have said, everybody here has the ability absolutely to do anything I do and much beyond. Some of you will, and some of you won’t. For those who won’t, it will be because you get in your own way, not because the world doesn’t allow you.

I’ve always thought high IQ is an edge. High mental acuity is genetic—you were either born with it or weren’t. But Buffett makes a great point about the efficiency with which someone uses their mental acuity materially impacting their output. You don’t have to be the smartest to win; you just need to avoid acting illogically.

You can’t change your IQ, but you can learn to think and act more rationally. This is a superpower hiding in plain sight. It’s something that everyone can do, but as with many superpowers hiding in plain sight, many people won’t.

Buffett built a fortune buying and overseeing businesses by being rational (he’s also pretty sharp). Entrepreneurs of all IQ levels should take note of his simple, but not easy, strategy and borrow a page from the Buffett playbook. Being rational and not shooting yourself in the foot is something everyone can do. It trumps intelligence in the long run and can lead to outsize success.

I’m finishing up The Warren Buffett Way by Robert Hagstrom. I’m interested in learning more about psychology to improve my decision-making. Hagstrom addresses the psychology of Warren Buffett throughout the book but also dives into broader psychological concepts. One that resonated with me was rationality. Here are a few passages I highlighted:

Rationalism, according to the Oxford American Dictionary, is a belief that one’s opinions or actions should be based on reason and knowledge rather than emotions. A rational person thinks clearly, sensibly, and logically.

The first thing to understand is that rationality is not the same as intelligence. Smart people can do dumb things.

In Keith Stanovich’s book What Intelligence Tests Miss: The Psychology of Rational Thought, Stanovich coined the term dysrationalia: the inability to think and behave rationally despite high intelligence. Research in cognitive psychology suggests there are two principal causes of dysrationalia. The first is a processing problem. The second is a content problem. Let’s look at them closely, one at a time.

Stanovich believes we humans process poorly. When solving a problem, he says, people have different cognitive mechanisms to choose from. At one end of the thinking spectrum are mechanisms that have great computational power. But they come with a cost. They require slower thinking and a great deal of concentration. At the opposite end of the thinking spectrum are mechanisms with very little computational power; they require very little concentration and permit quick decisions. “Humans are cognitive misers,” wrote Stanovich, “because our basic tendency is to default to the processing mechanisms that require less computational effort, even if they are less accurate.” In a word, humans are lazy thinkers. They take the easy way out when solving problems; as a result, their solutions are often illogical.

I’ve never considered the processing power it takes to think rationally, but this framing makes sense. When solving a complex problem, I’ve found that quick decisions usually aren’t the right decisions. I must sit back and focus on the problem. Think a few layers deep. When I’ve done this, I’ve often come up with some of my best ideas.

I like this framing of rational thinking: It’s the result of concentration and deep thought. If you try to solve a hard problem without them, you aren’t being rational; you’re being a lazy thinker and increasing your odds of making illogical decisions.

Some passages in The Warren Buffett Way by Robert Hagstrom reminded me of this post from a few months ago. I shared that taxes are a successful entrepreneur’s biggest expense. Allocating appropriate time to optimizing that expense, just as entrepreneurs do with all other major expenses, can have a material impact on a company’s ability to reinvest in growth opportunities. Here are the passages:

Except in the case of nontaxable accounts, taxes are the biggest expense that investors face—higher than brokerage commissions and often higher than the expense ratio of running a fund.

In a nutshell, the key strategy involves another of those commonsense notions that is often underappreciated: the enormous value of the unrealized gain. When a stock appreciates in price but is not sold, the increase in value is an unrealized gain. No capital gains tax is owed until the stock is sold. If you leave the gain in place, your money compounds more forcefully.

Overall, investors have too often underestimated the enormous value of this unrealized gain—what Buffett calls an “interest-free loan from the Treasury.” To make his point, Buffett asks us to imagine what happens if you buy a $1 investment that doubles in price each year. If you sell the investment at the end of the first year, you would have a net gain of $0.66 (assuming you’re in the 34 percent tax bracket). Let’s say you reinvest the $1.66 and it doubles in value by the second year-end. If the investment continues to double each year, and you continue to sell, pay the tax, and reinvest the proceeds, at the end of 20 years you have a net gain of $25,200 after paying taxes of $13,000. If, instead, you purchase a $1 investment that doubles each year and is not sold until the end of 20 years, you would gain $692,000 after paying taxes of approximately $356,000.

This is a great mathematical example demonstrating the power of compounding and the impact taxes can have on investment returns over a long period. It reminded me that playing the long game in investing gives you twin tailwinds, which can lead to explosive results.