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SBF
@SBF_FTX
Replying to
@SBF_FTX
7) Sometimes there's something selfish going on there -- some VC wants to get better terms, or a customer wants a rebate, or something. Those I get, and I almost don't mind! But sometimes they're not. Sometimes the advice would just hurt both of you.
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SBF
@SBF_FTX
8) And it's not just that they thought hard about what's best for the company but are wrong. It's that there are some very fundamental problems with their thought process; chiefly that it isn't actually really designed to create good outcomes.
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SBF
@SBF_FTX
9) What are some examples? a) "Please add an amendment to your bylaws stating that you must always have an even number of employees" b) "Make sure that investors have the right to approve/reject your choice of chewing gum" c) "Make sure to take more vacations"
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SBF
@SBF_FTX
10) Ok, so the first two aren't real. But they get at something that always confuses me: they're ways of placing arbitrary restrictions on the business against the better judgement of the team without a clear explanation for why the team would get those decisions wrong.
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SBF
@SBF_FTX
11) There are some restrictions that I totally understand, like "please add a rule saying that you can't steal from the company". I mean, you know, there's already the law and stuff for that, but at least it's pointing directly at a conflict of interest.
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SBF
@SBF_FTX
12) But much of the advice you get from people just seems weirdly paternalistic. By mandating that you must do X as a company, they're not just saying that they think X is right; you could do X even if they don't require it.
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SBF
@SBF_FTX
13) They're saying that, even conditional on you knowing they think X is right and you then deciding that you still think X is wrong-- that even in those cases, X is still right, no matter what you say.
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SBF
@SBF_FTX
14) All of which is totally reasonable if you think the team is doing a shit job and needs to be overruled! But if you really believe in a company, it's a weird stance to take.
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SBF
@SBF_FTX
15) And you could say that it isn't really that bad anyway--so what if it's wrong and you have to hire an extra person to get to an even number? Well the problem is that there are also *other* arbitrary constraints on your business, and sometimes they conflict.
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SBF
@SBF_FTX
16) If a group of investors mandates an even number of employees, and then a country mandates a prime number, now you're left with no choice but to fire until there are only 2 people left. Constraints exponentially restrict your actions. You *really* want to minimize them.
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SBF
@SBF_FTX
Replying to
@SBF_FTX
18) Partially, I think people have misguided notions about the abstract moral value of balance. Also, though, their advice isn't really meant to help the company. Really they're trying to be good and selfless themselves!
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SBF
@SBF_FTX
19) They're trying to make your life better, at the expense of the company. Maybe it's because they don't trust you to stop yourself from burning out. Maybe it's because they like and respect you, and so want the best for you personally.
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SBF
@SBF_FTX
20) Either way, there's something big those types of advice often miss. They come at your life from behind some sort of veil of ignorance, assuming that "vacation = good, work = bad". Sometimes there's pretty compelling evidence that's wrong.
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SBF
@SBF_FTX
21) It's hard for people to see that, sometimes; hard for people to see why you'd *want* to make that trade. They probably don't see all the other trades you've made. That it would be silly to have made those tradeoffs, and then at the last point stop trying so hard.
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SBF
@SBF_FTX
22) Anyway, I guess my point is: Getting advice is really important. A lot of the things I've learned have come others. And you should set yourself up to get great advice, and put lots of focus on it. When you find someone who is usually right, treasure that.
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SBF
@SBF_FTX
23) But that doesn't mean that all advice is good advice, even if it comes from good people. And sometimes the advice is bad in confusing ways. Sometimes there isn't much of an explanation for why they give it, other than "idk that's what they think they're *supposed* to say".
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SBF
@SBF_FTX
24) It's not always easy to distinguish. My biggest mistakes have come when I've gotten conflicting advice and not known what to do. But, *if* you've carefully considered their opinion and decided it's wrong even though they believe it -- don't feel afraid to disagree.
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