The Wrath of Reading & Writing: Building a Prepared Mind for Success

The Wrath of Reading & Writing: Building a Prepared Mind for Success

"I write because I don't know what I think until I read what I say." - Flannery O'Connor

In the world of investing, there is often talk about the reading habits of successful individuals like Warren Buffett. However, Frederik Gieschen argues in his piece "The Reading Obsession" that while reading is important, networking, building friendships, and traveling played equally crucial roles in Buffett's success. This highlights the fact that knowledge acquisition is not limited to reading alone. The act of "working" in knowledge is a fundamental aspect of being human.

Throughout history, the volume and mediums of information have changed. The industrial revolution, among other factors, led to a significant increase in literacy rates worldwide. Reading is how we build a "prepared mind," as Louis Pasteur once said, "In the fields of observation chance favors only the prepared mind." A prepared mind is essential because it allows us to react effectively to opportunities.

Just like evolution, where preconditions are necessary for significant changes to occur, great things in the world of venture also have preconditions. For example, Uber and Instagram wouldn't have been possible without the preconditions of mobile phone penetration and GPS technology. Reading helps us understand these preconditions and enables us to adapt and seize opportunities.

When we haven't put in the work to understand concepts through reading, we become ill-prepared for conversations. This lack of preparation hinders our ability to contribute effectively and engage in meaningful discussions. Therefore, reading is not just about acquiring information; it is about building a prepared mind that equips us for success in various areas of life.

Packy McCormick, a guest speaker, shared a similar evolution in his writing journey. Initially, he felt the pressure to write something every week. However, he eventually realized that writing something good was more important than writing something each week. This perspective resonates with Flannery O'Connor's quote, "I write because I don't know what I think until I read what I say." Writing helps us articulate our thoughts and ideas, bringing them to life.

One of the most rewarding experiences is discussing a topic we have thought about extensively but never truly articulated. Whether it's through conversation or writing, the process of explaining our perspective to someone else allows us to gain a deeper understanding of our thoughts. By engaging in these activities, we further strengthen our prepared mind and enhance our ability to contribute meaningfully to discussions.

In the realm of entrepreneurship, deciding how much equity to give key employees is a crucial consideration. According to James Currier, a four-time founder and managing partner at NFX, after a seed round, it is recommended to allocate around 10% to 12% for employee equity. The distribution of equity varies based on the role and level of experience. For example, a senior engineer may receive 1% of the company, while a junior engineer could receive 0.15%.

However, it is important to note that building a successful company takes time, often longer than four years. Therefore, longer vesting schedules are becoming more common. This is because options are not just about attracting talent, but also about retaining them to contribute to the long-term success of the company. To accommodate this, some companies are extending the period for exercising stock options well beyond the traditional 90 days after leaving the company.

James Currier also shares his experience of offering between 0.1% and 0.3% of the company to attract an advisor. This highlights the importance of considering equity distribution not only for employees but also for external individuals who can contribute to the company's growth.

In conclusion, reading and writing are powerful tools for building a prepared mind and achieving success. The act of reading goes beyond acquiring information; it helps us understand preconditions and adapt to seize opportunities. Writing allows us to articulate our thoughts and ideas, giving them life and enabling us to gain a deeper understanding of our own perspectives. Additionally, when building a company, carefully considering equity distribution for employees and external contributors is crucial for attracting and retaining talent. By incorporating these practices into our lives and businesses, we can enhance our preparedness and maximize our chances of success.

Actionable advice:

• 1. Cultivate a habit of regular reading to build a prepared mind. Challenge yourself to explore different topics and perspectives.

• 2. Embrace writing as a tool for self-reflection and articulation. Whether through journaling, blogging, or sharing thoughts with others, writing helps solidify your understanding and invites valuable conversations.

• 3. Prioritize equity distribution in your company. Consider the roles and levels of experience when allocating equity to key employees and external contributors. Longer vesting schedules and extended exercising periods can help retain talent and incentivize long-term commitment.