Sometimes you have to play the odds and sometimes you have to play the calculus.
There are several different frameworks one could use to get a handle on the indeterminate vs. determinate question. The math version is calculus vs. statistics. In a determinate world, calculus dominates. You can calculate specific things precisely and deterministically. When you send a rocket to the moon, you have to calculate precisely where it is at all times. It’s not like some iterative startup where you launch the rocket and figure things out step by step. Do you make it to the moon? To Jupiter? Do you just get lost in space? There were lots of companies in the ’90s that had launch parties but no landing parties.
But the indeterminate future is somehow one in which probability and statistics are the dominant modality for making sense of the world. Bell curves and random walks define what the future is going to look like. The standard pedagogical argument is that high schools should get rid of calculus and replace it with statistics, which is really important and actually useful. There has been a powerful shift toward the idea that statistical ways of thinking are going to drive the future.
With calculus, you can calculate things far into the future. You can even calculate planetary locations years or decades from now. But there are no specifics in probability and statistics—only distributions. In these domains, all you can know about the future is that you can’t know it. You cannot dominate the future; antitheories dominate instead. The Larry Summers line about the economy was something like, “I don’t know what’s going to happen, but anyone who says he knows what will happen doesn’t know what he’s talking about.” Today, all prophets are false prophets. That can only be true if people take a statistical view of the future.
— Peter Thiel
And this quote from The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers by Ben Horowitz:
I learned one important lesson: Startup CEOs should not play the odds. When you are building a company, you must believe there is an answer and you cannot pay attention to your odds of finding it. You just have to find it. It matters not whether your chances are nine in ten or one in a thousand; your task is the same. … I don't believe in statistics. I believe in calculus.
People always ask me, “What’s the secret to being a successful CEO?” Sadly, there is no secret, but if there is one skill that stands out, it’s the ability to focus and make the best move when there are no good moves. It’s the moments where you feel most like hiding or dying that you can make the biggest difference as a CEO. In the rest of this chapter, I offer some lessons on how to make it through the struggle without quitting or throwing up too much.
… I follow the first principle of the Bushido—the way of the warrior: keep death in mind at all times. If a warrior keeps death in mind at all times and lives as though each day might be his last, he will conduct himself properly in all his actions. Similarly, if a CEO keeps the following lessons in mind, she will maintain the proper focus when hiring, training , and building her culture.
The more information that’s out there, the greater the returns to just being willing to sit down and apply yourself. Information isn’t what’s scarce; it’s the willingness to do something with it.