Outliers is a book about success. It starts with a very simple question: what is the difference between those who do something special with their lives and everyone else?
Constraints in Cap Rates
- Poverty: High IQ does not necessarily mean success: study shows only 15% goes on to succeeding => the correlation was that these 15% high IQ individuals were born into wealthy families, those who failed were the ones born into poverty
- Stupidity: Thinking that one’s rational decision is the right decision, but fail to understand the rules we set might be wrong. Example is that a study shown on pro hockey players are often born within the beginning 3 months of the year. This is because they are chosen when they are young, and they have an age advantage to those that are born later in the year.
- Attitudes: Eastern culture looks at math where if you put enough effort into the problem, the problem is solvable. In Western culture, the attitude towards a math problem is that the ability to solve the problem is due to their ability.
- Identifying sources of constraint on capitalization rates and figuring out how to remove them
- There are advantages that can be disadvantages: a parent that is worth over $1bn, as a child you put less effort in life
- 30% of entrepreneurs with some form of learning disability => they compensated their lack of ability with strengths in other skills like delegation and communication which made them great entrepreneurs. Point here is that disadvantages can become advantages.