Princeton Baccalaureate 2012: Michael Lewis

Summary

In this insightful commencement speech, the speaker reflects on the role of luck in shaping careers and success. Drawing from personal experience, he recounts his unlikely journey from studying art history to becoming a bestselling author and Wall Street insider. Through anecdotes like his experience with Solomon Brothers and the concept of 'Moneyball,' he emphasizes that success is not just about merit but also about the randomness of opportunities. He urges graduates to acknowledge their privilege and recognize the debt they owe to those less fortunate, advising humility in the face of luck.

Takeaways

• 😀 **Role of Luck**: Success is often shaped by uncontrollable factors such as timing, environment, and random encounters. Many successful individuals owe much of their success to luck, not just talent or hard work.
• 😀 **Questioning Meritocracy**: Even in highly competitive fields like professional sports, outcomes often aren't solely determined by merit. Luck and chance play a significant role in success and valuation.
• 😀 **Intellectual Passion Matters**: The speaker emphasizes the importance of pursuing intellectual passion over purely financial incentives, as this leads to a more fulfilling and successful career in the long run.
• 😀 **Career Path Can Be Unexpected**: The speaker’s career path, from art history to writing books about finance, highlights how unpredictable career journeys can be, and how random opportunities can change one's direction.
• 😀 **The 'Extra Cookie' Metaphor**: A psychological experiment showed that people often take advantage of circumstances due to luck (like being arbitrarily appointed a leader), which can influence their sense of entitlement or success.
• 😀 **Success is Often Arbitrary**: Graduates should recognize that their current position of privilege (being educated at an institution like Princeton) is, in many ways, a product of luck rather than purely their own efforts or merit.
• 😀 **Luck and Obligation**: If you've had success, you also owe a debt to others who are less fortunate. Success carries with it a responsibility to help those who didn’t have the same opportunities.
• 😀 **Life is Unpredictable**: The unpredictability of life means that success isn't necessarily the result of a straight, rational path. Chance plays a huge role in how careers and lives unfold.
• 😀 **The False Humility of Success**: Many successful people rationalize their achievements as a result of merit alone, but in reality, a large part of it comes down to luck. Recognizing this is important to avoid hubris.
• 😀 **Learning from Past Experiences**: The speaker shares how his unexpected career shift from Wall Street to writing illustrated the value of following one's passion and being open to change, even when it seems risky.
• 😀 **Acknowledge Your Privilege**: Graduates should recognize their unique opportunities and privilege in being educated at a prestigious institution and living in an affluent society, which can lead to further success with the right mindset.

Q & A

What is the main theme of the speaker’s address?

The main theme is the role of luck in success and the importance of humility and awareness of one's privileges. The speaker encourages graduates to recognize the randomness behind their achievements and use their success for the greater good.

How does the speaker reflect on their own graduation experience?

The speaker recalls feeling outraged at graduation, unsure of their future and uncertain of their economic value. Despite having majored in art history, which was seen as impractical, they went on to achieve success, showing that career paths are unpredictable.

What lesson does the speaker convey about careers and success?

The speaker emphasizes that careers are often shaped by luck, not just effort or merit. They highlight that even seemingly irrational career choices or random opportunities can lead to success, and it’s important to acknowledge the role of chance in those outcomes.

Why does the speaker reference their book *Liars Poker*?

The speaker mentions *Liars Poker* as an example of how their unexpected career path led to writing a successful book. They highlight how they were able to write about Wall Street and derivatives despite having no prior expertise, underscoring the luck that played a role in their success.

What point is the speaker making with the *Moneyball* example?

The *Moneyball* example illustrates how professional sports teams misvalue players due to a lack of understanding about the role of luck. The speaker uses this to argue that success, whether in sports or in life, often depends on factors beyond one's control, and that this misvaluation is a key element of life’s unpredictability.

What is the significance of the ‘extra cookie’ experiment?

The ‘extra cookie’ experiment demonstrates how people who are randomly placed in positions of power or success often feel entitled to rewards they didn't earn. The speaker uses this to show that individuals often fail to recognize the luck behind their achievements, which can lead to entitlement and a lack of humility.

What advice does the speaker offer to the graduates?

The speaker advises graduates to remain humble and recognize the luck that has played a role in their success. They encourage them to use their advantages for the greater good and not assume they fully deserve their positions due to their hard work alone.

What does the speaker mean by ‘false humility’?

By ‘false humility,’ the speaker refers to the idea of acknowledging success as luck without downplaying one's achievements. It’s a form of humility with a purpose — to remind others that success often involves chance, and that it’s important to be aware of the circumstances that allowed it.

How does the speaker relate their experiences at Princeton to their later success?

The speaker reflects on how their time at Princeton, particularly the intellectual passion sparked by their art history thesis, shaped their later success. Despite not following a traditional career path, the education and connections made there contributed to their future opportunities.

Why does the speaker emphasize the concept of ‘luck’ in their life story?

The speaker emphasizes luck to illustrate that success is not solely the result of hard work or individual merit. They want the graduates to understand that their position, privileges, and opportunities have been influenced by factors beyond their control, and to recognize their responsibility to use their success thoughtfully.