Adonis Diaries

Posts Tagged ‘Entrepreneur

FRAUD DETECTOR:  SKIN IN THE GAME

John Peter shared this link of Nassim Nicholas Taleb
July 22 , 2015

SKIN IN THE GAME and OUR FRAUD DETECTOR
+ Have you ever wondered why people are upset by CEO compensation, sometimes >200x that of the average employee, but not if an entrepreneur makes the same amount of money; nor are they upset with singers, authors, or performers?
+ The economist Thomas Sowell found this an aberration.

His argument is that a CEO is not harming you; he is not sponsored by the taxpayer (or let us grant him that for this argument). But Sowell and the others apologists of CEO pay are missing the fact that our naturalistic fraud detector may be picking up something quite severe.

A CEO has inverse skin in the game; his losses are transferred to the shareholder (as he keeps the upside with stock options and stick others with the downside).

As I said in Antifragile, he is no entrepreneur (or artist where thousands are sacrificing their lives, so entering the profession cannot be done rationally on economic grounds).


+ We also detect that a CEO is largely an actor. Just look at one on TV for a split second.
+ So our ecological instinct is effective there in smelling something unfair; it is more powerful than that of regular economists who need a more sophisticated understanding of contract theory/asymmetry to get the point.


+ Note that in some countries where wealth has a bad name, it is often because it is associated with rent seeking. In the US, perception is different because wealth is traditionally associated with risk taking. (From your own pocket?)
+ Correct me if I am wrong, but it seems that societies give respect to people who have skin in the game (but not exclusively), and have a moral repulsion towards those who have inverse skin in the game.

Entrepreneur? How old you started?

If Hollywood wants to portray an entrepreneur in a movie, and it’s usually a he,  is in his early 20s, may or may not have a college degree, is probably wearing blue jeans and a hoodie, and is a bit unkempt, with messy hair and facial hair.

A link of Joanna Choukeir Hojeily via Zoe Stanton on FB

 posted this April 1, 2014 (Fool’s Day)

Think You’re Too Old to Be An Entrepreneur? Think Again. (Infographic)

That stereotype may appeal to our interest in a narrative where geeks take over the world, but the Mark Zuckerberg-inspired vision is absolutely only a part of the entrepreneurship story.

Many entrepreneurs don’t even think about launching their own business until they are in their 30s, 40s, and even 50s, after years of work experience.

Ray Kroc, the founder of McDonald’s, sold paper cups and milkshake mixers until he was 52, according to an infographic from San Francisco-based startup organization Funders and Founders (below).

The founder of cosmetic behemoth Mary Kay, Mary Kay Ash, sold books and home decor objects until she was 45.

Fret not if you are over 40 and have yet to start your own business. There’s still time.

And chances are, if you’ve worked a while, you’ve learned a thing or two about life and business that will be helpful, too.

Take a look at the infographic below for more examples of entrepreneurs who launched later in life.

Click to Enlarge+

Think You're Too Old to Be An Entrepreneur? Think Again. (Infographic)


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October 2020
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