Talk a little bit about what industries you should think about working in, what kind of job you should have and who you might want to work with.

So you said one should pick an industry where you can play long-term games with long-term people. Why?

Yeah, this is an insight into what makes Silicon Valley work and what makes high trust societies work.

Essentially, all the benefits in life come from compound interests, whether it's in relationships or making money or in learning.

So compound interest is a marvelous force where you start out with 1x what you have.

And then if you increased 20% a year for 30 years, it's not that you got 30 years times 20% added on. It was compounding.

So it just grew and grew until you suddenly got a massive amount of whatever it is, whether it's goodwill or love or relationships or money.

So I think compound interest is a very important force. You have to be able to play a long-term game.

And long-term games are good. Not just for compound interest, they're also good for trust.

If you look at prisoner-to-demo-type games, the solution to prisoner-to-demo is tit for tat, which is I'm just going to do to you what you did last time to me with some forgiveness in case there was a mistake made.

But that only works in an iterative prisoner-to-demo. In other words, we play the game multiple times.

So if you're in a situation like for example, you're in Silicon Valley where people are doing business with each other and they know each other, they trust each other, then they do right by each other because they know this person will be around for the next game.

Now of course that doesn't always work because you can make so much money in one move in Silicon Valley. Sometimes people betray each other because they're just like, I'm going to get rich enough of off this that I don't care.

So there can be exceptions to all these circumstances. But essentially if you want to be successful, you have to work with other people and you have to figure out who can you trust and who can you trust over a long, long period of time that you can just keep playing the game with them so that compound interest in a high trust will make it easy to play the game and will let you collect the major rewards, which are usually at the end of the cycle.

So for example, Warren Buffett has done really well as an investor in the US stock market. But the biggest reason you could do that was because the US stock market has been stable and around and didn't get, for example, seized by the government during a bad administration or the US didn't plunge into some war, the underlying platform didn't get destroyed.

So in his case, he was playing a long term game and the trust came from the US stock market stability in Silicon Valley. The trust comes from the network of people in the small geographic area that you figure out over time who you can work with, who you can't.

If you keep switching locations, you keep switching groups. Let's say you started out in the woodworking industry and you built up a network there and you're working hard, you're trying to build a product in the woodworking industry.

And suddenly another industry comes along that's adjacent but different, but you don't really know anybody in it and you want to dive in and make money there. If you keep hopping from industry, no, actually I need to open a line of electric car stations for electric car refueling.

That might make sense. It might be the best opportunity, but every time you reset, every time you wander out of where you built your network, you're going to be starting from scratch. You're not going to know who to trust. They're not going to trust you.

They're also industries in which people are transient by definition. They're always kind of coming in and going out. Politics is an example of that, right? In politics, new people are being elected. You see in politics that when you have a lot of old timers, like the Senate, people have been around for a long time and they've been career politicians.

Yeah, there's a lot of downside to career politicians, the corruption, but an upside is they actually get deals done with each other because they know the other person's going to be in the same position 10 years from now and they're going to keep dealing with them.

So they might as well learn how to cooperate, whereas every time you get like a new incoming freshman class in the House of Representatives, which turns over every two years, the big wave election, nothing gets done because there's a lot of fighting because I just got here. I don't know you. I don't know if you're going to be around. Why should I work with you rather than just try and do whatever I think is right.

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