The Power of Reading and Creating Common Knowledge: Insights from Farnam Street and kwokchain

The Power of Reading and Creating Common Knowledge: Insights from Farnam Street and kwokchain

Introduction:

Great minds are known to read extensively, as it allows them to learn from the mistakes and wisdom of others. In this article, we will explore the benefits of reading and the importance of creating common knowledge. Drawing insights from Farnam Street's philosophy on reading better and kwokchain's analysis of creating public common knowledge, we will uncover the common points between these two perspectives and provide actionable advice for readers.

The Value of Reading:

As Charlie Munger famously said, wise individuals who possess a broad understanding of various subjects are avid readers. Reading allows us to access the best ideas and insights that others have already discovered. It is a means to master the knowledge that has been accumulated over time. However, it's not just about the number of books we read, but rather the quality and depth of our engagement with them.

Reading Levels and Approaches:

The Levels of Reading, as outlined by Farnam Street, offer different approaches to reading. These levels range from reading for entertainment to reading to master a subject. It is important to assess the purpose of our reading and adapt our efforts accordingly. Skimming through books and articles can be beneficial for quickly acquiring surface-level knowledge, while certain texts demand a thorough understanding and multiple readings.

Reading Speed and Absorption:

Contrary to the popular notion of reading speed as a vanity metric, what truly matters is how much knowledge we absorb. It is not about how fast we read or how many books we finish but rather the depth of understanding we gain from the material. Sometimes, the opportunity cost of reading something new is missing out on the opportunity to re-read a book that has had a profound impact on us. Revisiting the best books we've read allows us to reinforce our learning and deepen our understanding.

The Role of Writing:

Writing about what we read is a powerful tool for consolidating our knowledge. It helps us identify gaps in our understanding and connects new information with existing knowledge. Writing enables us to discover what we truly know and what we still need to learn. Both conventional note-taking and the use of a blank sheet to capture our thoughts and insights can enhance our comprehension and retention of the material.

Creating Common Knowledge:

Moving on to the insights from kwokchain, we delve into the concept of creating public common knowledge and its network effects. Rich Barton, the founder of several successful consumer tech companies, has demonstrated the power of creating common knowledge to disintermediate incumbents and dominate search. By providing consumers with more data transparency, Barton's companies empower them and challenge intermediaries who benefit from information asymmetry.

Network Effects and Demand Ownership:

The creation of common knowledge generates network effects, as more people contribute and utilize the platform. Barton's companies primarily rely on search as an acquisition channel, driving significant demand at a low cost. By owning the top search results, these companies further strengthen their position and acquire more sites to expand their dominance. This strategy ultimately enables them to own the demand side of their respective industries, building their reputation and network effects.

The Virtuous Loop of Common Knowledge:

Barton's companies, such as Zillow, have harnessed the power of common knowledge to democratize information and challenge traditional brokers. The Zestimate, for example, became public common knowledge, giving individuals the leverage to negotiate with brokers based on objective data. As the number of users increases and trust in the platform grows, the demand-side network effect strengthens, solidifying the company's position as a trusted destination.

Actionable Advice:

• 1. Prioritize quality over quantity when it comes to reading. Focus on thoroughly understanding and absorbing the material rather than racing through it.

• 2. Incorporate writing into your reading practice. Take notes, summarize key points, and reflect on what you've learned. This will enhance your comprehension and help identify areas for further exploration.

• 3. Consider the power of creating common knowledge in your field or industry. Look for opportunities to share knowledge, challenge information asymmetry, and build your reputation as a trusted source.

Conclusion:

Reading extensively and creating common knowledge are two powerful practices that can enhance our understanding and impact. By adopting a thoughtful approach to reading and leveraging the network effects of shared knowledge, we can unlock new insights and challenge established norms. Let us embrace the wisdom of great minds and strive to learn continuously.