Dang

@myfirstmilpod @ShaanVP Ironically true. It’s @garyvee

who should we bring on the pod next? tag your dream guests below 👇

@george__mack Do you have LinkedIn? Wanna repost there and give you credit

This was taken from my newsletter. You can sign up here: George-mack.com George-mack.com

How Buffett and Munger set incentives: Everyone has heard: "Show me the incentives -- and I'll show you the outcome" But what do good incentives actually look like? Here's the incentive system Buffett and Munger used for GEICO: 1. Principal-Agent Problem Principal = Shareholders of the business Agent = Employees of the business. The agents (employees) are acting on behalf of the principles (shareholders). The principal-agent problem is the conflict of interests between these 2 groups. Buffett & Munger looked to create an incentive model so that every agent in the business was rewarded for thinking like the principal. 2. Inversion "You get what you reward for. If you have a dumb incentive, you get dumb outcomes" - Munger Having a dumb incentive scheme is worse than having no incentive scheme. The worst incentive schemes are ones that create a greater principal-agent problem. The best example of this is FedEx, which paid people by the hour rather than by when the job was done -- and could never deliver anything on time. Buffett & Munger outlined ways that would make the principal-agent problem worse -- and avoided that. 3. Simplicity For 20,000+ employees at Geico (One of Buffett & Mungers companies) - there are 2 simple variables that incentives are based on: A. New business (Number of policies) B. Profit growth This is the midwit meme in play. It's so simple that everyone in the company can repeat it back to themselves. 4. Pairing metrics If the only metric was new business, the principal-agent problem would lead to employees focusing on growth at all costs. If the only metric was profitability - the principal-agent problem could result in them turning off all advertising, which would maximise profit but harm the business in the long run. The balance of business growth and profitability aligns the employees goals with the shareholder's goals -- and prevents a perverse incentive problem. 5. Long term thinking The incentive system at GEICO only kicks in after a year of being there. And it increases as a % each year after. The beauty of this system is that the most valuable employees are the ones with the most experience in the business -- but they are also more likely to hit motivation entropy with time and leave the business. The incentive system is set up like a video game designed to reward long term thinking and combat fatigue. 6. Win-Win alignment The very top people, CEO and shareholders, (Principals) are getting paid on the same variables as everyone else in the company (agents). The knock on effect on culture is that everyone is swimming in the same direction. ------ If you have any other tactical nuggets on incentives, drop them below. It feels like an incredibly under discussed topic.

@ThomasSmale 🙏👀

NDA expired and can share the business. RT & follow and I'll send what I can

people criticize those they can’t beat. I don’t like the chiefs, packer fan for life. mahomes is incredible. Hard to can beat him, crazy athleticism. Critics chirping him about bodyfat. Guarantee this just fuels him - he’s outcome driven not popularity driven

This.

The comeback is the greatest storyline. Living mine now 🙏

Giving away 5 Adult VeeFriends Crewneck Sweatshirts 🥳 To enter, retweet the tweet BELOW by 5 PM EST. To redeem, the winner must have an active and up-to-date VeeFriends.com account. We’ll randomly pick winners using @TWPicker! No purchase is necessary. (value $49, shipping and handling included). Anyone found to use multiple accounts to enter will be ineligible. Multiple entries in a single day will not be accepted and can lead to disqualification. Good luck!🐈‍⬛

Connecting ideas from the @AcquiredFM episode on @taylorswift13, @packyM's @notboringco, @a16zcrypto's biz model video, and music NFT leaders like @Cooopahtroopa @dgreenstein1 @blackdave was a fascinating exercise. Would love feedback if you check it out. makingweb3real.substack.com/p/music-x-web3…

@JoeButcher @SquadOfKnights Love the new post - these are great resources ESP for newbs !!

@DanGrille @SquadOfKnights thank you, ser! appreciate the feedback. new post coming shortly :)

When transitioning from the military to business, I had the aspiration of leveraging economic incentives to prevent conflict and improve relations between cultures & countries. I believe that Web3 is the innovation that can help make this dream a reality. Time for 🧵👇 (0/14)

@JoeButcher @AcquiredFM @taylorswift13 @packyM @notboringco @a16zcrypto @Cooopahtroopa @dgreenstein1 @BlackDave good writeup...I think what @mikeshinoda @ZigguratsNFT and @illmindPRODUCER @SquadOfKnights are doing for the nft world / music world / nft music world is worth keeping an eye on too!

@JoeButcher so well organized, love it! I think music will be a big NFT proof of legitimacy for normies both from artist d2c and collaboration communities like @SquadOfKnights

11. I'd love any feedback from anyone who takes the time to read it. Yes, it's long but that's on purpose. I'm not looking to create catchy click bait. My goal is to provide deeper thoughts on the space for those looking to learn and push your thinking (myself included 😀)

@garyvee last binge for me was peaky blinders

What streaming show are u watching now ?

Hanging with a few new @veefriends 🧙‍♂️🦍 @garyvee

@bobbyhundreds saintsxsinners.co personal low key fav I don’t even think they have twitter lol

500k followers, 100 likes....oof, wonder how many active users there are

@garyvee Planes trains automobiles

Favorite movie 🎥 of all time ? Go -

Taxes explained in 29 seconds. 😂 RT if you understand the kids pain.

@illmindPRODUCER Let the church say amen

If you can find it on google don’t bother asking me