exposure

oxygen is good for you (but not too much)

Things can be favorable or unfavorable, appear positive or negative. They might be comfortable or uncomfortable, sometimes hinting the outcome. Whether the actuality will be good or bad, we don’t know.

Exposure to oxygen and nitrogen, serves as a good example. Imagine, as a human, your body’s interaction with these elements. Given this, your metabolism and bodily functions essentially require the inhalation of air, which contains both oxygen and nitrogen. This process is vital for transferring oxygen into your bloodstream, facilitating the transport throughout your body. This oxygen is crucial for metabolizing various molecules, ultimately generating energy. Energy is essential for the operation of your brain, heart, and other organs.

Exposure to oxygen and nitrogen appears to be immensely beneficial. Generally, it’s undesirable to find oneself in environments devoid of these elements, such as underwater or in space. This type of exposure is positive and fundamental. It’s a constant element of human existence, from the moment of birth until death.

the iphone, a black swan

There are more subtle forms of exposure as are those in the financial markets. You can back or bet against a stock, index, or commodity—whatever’s hot that week. It’s where exposure cuts both ways.

Take Apple in 2007. As Steve Jobs unveiled the iPhone, some practically lost their minds. Betting on Apple’s success, you were exposed to what could have changed your life. That single decision, shaped by luck and insight, could have set you and your descendants up for generations.

For others who thought Apple as a company which had lost its edge and would soon be outdone by the khaki-clad engineers at Microsoft, Steve Jobs’ line:

iPhone is a revolutionary and magical product that is literally five years ahead of any other mobile phone

was an unpleasant experience.

don’t get up from your seat

Exposure doesn’t work if you’re only interested in quick wins or one-off bets. The first 30 minutes of the movie will never be enough.

You might catch your big break at 70, like Colonel Sanders, or in your twenties, like Zuckerberg. The key is to keep showing up where outsized opportunities exist.

Every good investor who has been a startup founder before gave me the same advice: it’s a marathon so you better learn how to handle the blisters. In high-risk, high-reward arenas, you should remain present until luck and timing finally meet.