Day #399: The Threat of Undercapitalization.

I recently listened to a superb interview of Warren Buffett and Bill Gates.

In it, Buffett admitted he’s not the smartest person in the room. The “secret” to his extraordinary success in the capital markets comes down to the “Horsepower Versus Output” distinction.

He explained that “horsepower” is the talent we’re born with but “output” is how much of that reservoir we have the commitment, discipline and guts to realize.

The term for translating potential into results is “capitalization”, because if you are seriously committed to becoming a master in your chosen field, you need to fully capitalize on all the potential you have.

One of the finest ways to ensure complete capitalization of your talent is to start your pursuit of becoming the best in the world at your chosen skill as early as possible .And then to get in the 10,000 hours that Anders Ericsson has discovered is the minimum viable amount of training needed before genius begins to present itself . ( Malcom Gladwell wrote about this at length in The Outliers).

That’s 2 hours and 44 minutes of daily practice at one thing for ten years…

The truth is that you just have to put in ridiculous amounts of time and effort to reach world-class performance.This is not just about putting in the hours though, it about deliberate practice and adopting a mindset of constant improvement.

You really can get there (and you disrespect your potential if you don’t). But most of us are just too distracted, too interested in easy, too affected by criticism and too invested in comfort to heed the call on our lives and do what’s needed to become iconic.

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