Outlier Algorithm
Outlier Algorithm

Outlier Algorithm

Quick Summary

The best entrepreneurs know this: every great business is built around a secret that’s hidden from the outside.—Peter Thiel

The first time I considered the importance of original thinking was when I listened to an interview with Peter Thiel, one of Silicon Valley’s top investors (first investor in Facebook) and a co-founder of PayPal.

In the interview, Thiel shared that when he vets employees to hire and founders to fund, he always asks some version of the following question:

What do you believe is true that no one else agrees with you on?

Take 30 seconds and try to answer the question for yourself.

How many answers were you able to come up with? Were they high-quality answers?

How someone answers the question says a lot about them. A typical person defers to social or expert authority for their opinions. Therefore, they have trouble answering Thiel’s question. In many ways, humans are designed for social conformity. Conforming is easier, and it works 99% of the time. Hence the phrase, “Don’t reinvent the wheel.”

An original thinker knows that social and expert authority is often right, but that it can also be incredibly wrong too. So, the original thinker looks for holes on the consensus view and capitalizes on them by:

  • Making unique investment decisions
  • Starting a business
  • Creating and sharing a new idea
  • Etc.

Because the original thinker can’t simply depend on outside authority, the original thinker must be an independent thinker and be able to reason from first principles. This takes a lot more effort.

This Mastery Manual is about the Outlier Algorithm. In it, you’ll learn:

  • The Outlier Algorithm of the world’s most successful investors.
  • How to apply the Outlier Algorithm across key areas of your life.
  • How to find your “trademark idea.”

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