The guest
Shane Parrish: Founder of Farnam Street (fs.blog) and former intelligence-agency operative; author of Clear Thinking, host of The Knowledge Project podcast, and writer of the popular weekly Brain Food newsletter.
What this episode covers
Tim Ferriss interviews Shane Parrish about how to think more clearly and make better decisions. Parrish traces his unlikely path from near-delinquent kid moving schools every year to working at Canada's NSA-equivalent two weeks before 9/11, and how rediscovering Buffett and Munger during an MBA led him to build Farnam Street. The core argument is that good outcomes come less from in-the-moment brilliance than from the position you put yourself in beforehand, and that automatic rules turn desired behavior into default behavior. They dig into separating problem-definition from problem-solving, win-win relationships, investing for survival over maximization, and why writing remains essential thinking practice in the age of AI.
Recommended on this episode
BookRecommendedISBN verified
Lateral Thinking
Edward de Bono
“very helpful just for forcing yourself as a portion of a practice to look at the same situation with a different lens”
“He wrote a book called Lateral Thinking. He has another one, I think it's called The Six Thinking Hats or something along those lines, which similarly, very helpful”— Tim Ferriss
BookRecommendedISBN verified
Six Thinking Hats
Edward de Bono
“very helpful just for forcing yourself as a portion of a practice to look at the same situation with a different lens”
“He has another one, I think it's called The Six Thinking Hats or something along those lines, which similarly, very helpful”— Tim Ferriss
The guest's own work
BookBy the guestISBN verified
The Great Mental Models
Shane Parrish
“Then we created these series of books called The Great Mental Models. And the idea behind The Great Mental Models was basically, what are the big ideas you would've learned in university”— Shane Parrish
BookBy the guestISBN verified
The 4-Hour Body
Tim Ferriss
“he's done that by following the slow-carb diet in The 4-Hour Body as described by The 4-Hour Body. People can find it online, certainly without having to buy any book.”— Tim Ferriss
BookBy the guestISBN verified
Clear Thinking: Turning Ordinary Moments into Extraordinary Results
Shane Parrish
“Shane, the new book is — yeah, it's a good one. Clear Thinking: Turning Ordinary Moments into Extraordinary Results. People can find that wherever fine books are sold”— Tim Ferriss
Also referenced (named, not recommended)
BookReferencedISBN verified
The Stopwatch Gang
Greg Weston
“why was the book The Stopwatch Gang important to you and could you provide some context for how that appeared in your life?”— Tim Ferriss
BookReferencedISBN verified
The Stopwatch Gang
Greg Weston
“And there's one book called The Stopwatch Gang. And I was like, what's this about? I pick it up and it's about a bunch of bank robbers.”— Shane Parrish
BookReferencedISBN verified
Buffett: The Making of an American Capitalist
Roger Lowenstein
“Were you introduced to them by Buffett: The Making of an American Capitalist, or how did you get introduced to them?”— Tim Ferriss
BookReferencedISBN verified
Buffett: The Making of an American Capitalist
Roger Lowenstein
“Yeah, so I read Buffett: The Making of an American Capitalist, I think in university.”— Shane Parrish
BookReferencedISBN verified
Poor Charlie's Almanack
Charlie Munger
“In the room next door, I have Poor Charlie's Almanack. I love reading about mental models.”— Tim Ferriss
ProductReferenced
Athletic Greens
Athletic Greens
“Kat Cole, who works at Athletic Greens. Tim Ferriss: Yeah, totally. Shane Parrish: One of my favorite people. She's always one step ahead.”— Shane Parrish
Big reveals from this episode
- Parrish credits pure luck, not virtue, for staying out of serious trouble as a teen: he skipped a night out to finish The Stopwatch Gang, and the friends he stayed home from broke into a house and got caught.
- He explains the intelligence agency vetted him exhaustively, interviewing neighbors, teachers, and references including a professor who hated him after Parrish failed physics for gaming a guess-unlimited assignment system.
- Central thesis: ordinary moments determine your position and your position determines your results; Buffett always wins because he positions himself to benefit whether markets rise or crash, never forced into bad options.
- Automatic rules turn desired behavior into default behavior set when you're at your best; Parrish got the idea from Daniel Kahneman, who said 'people don't argue with rules, and I follow them.'
- Parrish describes a key Farnam Street practice: separating problem definition from solution into two distinct meetings, because smart type-A teams jump to solving the first plausible problem without asking if it's the real one.
- On investing he writes friend investments off to zero the moment he writes the check, preferring to 'be wrong supporting a friend than right not supporting them,' protecting the friendship over returns.
- Parrish names three counterintuitive pillars of decision-making: your position at the time, managing (not eliminating) emotions/temperament, and thinking independently of circumstances and the crowd.
- On writing in the age of AI: 'Writing is the process by which we realize we don't understand what we're talking about'; feeding an essay to ChatGPT to find weak points is fine, having it write the essay defeats the point.
Worth remembering
- A grade-nine teacher wrote on Parrish's report card that he 'would be lucky to graduate from high school.'
- Parrish helped start what became the largest, most valuable part of his intelligence agency, the Canadian equivalent of the NSA.
- When Parrish told his boss he wasn't ready for a post-9/11 role, the boss replied 'You're all we've got... Get back to work,' which Parrish calls the worst pep talk he ever heard.
- Farnam Street began as a blog at 68131-1440.blogger.com, named for Berkshire Hathaway's ZIP code and Kiewit Plaza unit number.
- Parrish lost three-quarters of his audience overnight when Google shut down FeedBurner, prompting him to build an email list that now has 600,000-700,000 subscribers.
- Naval Ravikant 'saved' Parrish's podcast: the episode he'd planned as his last went parabolic, convincing him to keep going.
- Parrish hides his real estate company from himself; it doesn't appear when he logs into his bank, and he checks it only once a year for accountant statements.
- On leaving the intelligence agency, Parrish cashed in a large guaranteed pension against his accountant's advice, calling it the worst financial but best psychological decision.
- Rather than fixed-amount index investing, Parrish puts in more during market panics and less near all-time highs.
- Tim Ferriss closes with a military-borrowed guiding phrase he journaled that morning: 'Slow is smooth, and smooth is fast.'
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