Global versus Local Optimization

To optimize day-to-day life, one has to optimize locally. To pursue a higher goal, one has to optimize globally. Two distinct concepts.

When a person focuses on something important and long-term, there will be prioritization. There will be some give and take. Global Optimization will bring about some costs… and those costs can be “optimized away” via Local Optimization.

But… too much focus on Local Optimization will leave a person with too little focus on Global Optimization, eventually costing him the chance of reaching his next big goal.

If you want to achieve something big, you cannot be concerned about things that seem to matter but actually matter little. For example, if you are participating in a running competition, you cannot be concerned about your clothes getting sweaty.

“The very things I want to do, I don’t do. The very things I don’t want to do, I do.” None of us want to live this experience.

Therefore, to pursue a higher goal, some costs will have to be borne. Think about some of the grandest figures in human history and their “not that perfect, nor that normal” lives. There is a cost to pay.

You do not have to put out every single fire. Let the right fire burn. Let go, so that you can move on.

If one wants to achieve something higher, Local Optimization has to give way to Global Optimization.

Preparing versus Accomplishing

A profound capability to observe and to think leads to introspection and insights. Yet, excessive thinking can inhibit a person from acting, causing the person to feel paralyzed — so-called “analysis paralysis.” This phenomenon is not uncommon and can be quite harmful.

An unfortunate example is the story of Swiss philosopher Henri-Frédéric Amiel (1821–1881). When he was alive, he felt he couldn’t accomplish anything. He produced relatively little published work — which was noticed by both himself and his friends. In his personal journal, he wrote down his thoughts about his perceived failures. He wrote, “I am always preparing and never accomplishing.” The ultimate irony in this story is the following: Amiel did achieve great success — only posthumously — through the very document that he documented his thoughts about his perceived failures.

In investing, legendary investors like George Soros and Stanley Druckenmiller have long been aware of the harmful effect of “analysis paralysis.” Both of these investors preach the mentality of “invest first and then investigate.” This helps short-circuit the paralysis, thus striking a healthier balance between preparing and accomplishing.

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