Adversity as Competitive Advantage

Being good at something doesn't promise rewards. It doesn't even promise a compliment. What's rewarded in the world is scarcity, so what matters is what you can do that other people are bad at, writes James Clear.

In my six active years in the financial markets, I have scrutinized my biggest losses, and this is what they reveal:

The business arena is competitive, filled with people overcoming challenges every day. It's the incredibly difficult challenges that give us the opportunity to pull ahead. In a competitive world, adversity is our friend. The harder it gets, the better chance you have of insulating yourself from the competition.

It's like a marathon race: before you can break away from other runners, you have to survive what they cannot survive — a steep hill, a faster pace, weather conditions, etc. You do not break away when it's easy; you break away, if ever you do, when it is hardest for everyone else, including yourself. But, having insulated yourself from failure before, you feel pain, you feel the blows of big losses, but you are not paralyzed by them into inaction. Because you've turned them into a friend. That is, you are more prepared and capable of enduring longer periods of suffering.

I arrived at this observation distinctly while reviewing an investment I made in the commodities market, where I was shaken out with a large loss before the investment proved successful. We'll create another analogy for what it means to be 'shaken' out.

It's more like a large filter, a wall that seems impregnable to inexperienced eyes. If you have run or cycled competitively before, you will understand how difficult the process is: a steep hill will leave you out of breath, a fast pace will force you to walk later on, and hot weather will exhaust you. In business and sports, we face similar challenges. Leverage, which means risking big to win big, will threaten your financial stability. One loss can send you back to your grandmother's house, with little to nothing. Losing months will cause self-doubt and relapse into negative thinking patterns, even relapse into negative lifestyle habits.

But both runner and entrepreneur need to survive these challenges in order to break ahead into victory or profitability. Without risking big, how can you ever break free of relying on JOBS (Just Over Broke)? Without a fast pace, how can you ever get the gold medal?

You have to start by identifying the unspoken rules in your situation. What constraints do others face, and how can you turn those into strengths? Shane Parrish challenges us to introspect.

Cancelo Alvarez

Training Ourselves to Notice Peace

 

Reading time: 2 minutes

You've noticed, surely, how often we take for granted untroubled breathing until we get the flu and air has to negotiate its way in—or how often we take for granted freehand writing until our hand is bandaged from an acute cut. I'm not arguing that we should be kneeling down every hour thanking the heavens for good breathing or writing, but I'm observing something even more underappreciated: peace of mind.

Many philosophers and spiritual writers who made names for themselves agree on this truth:

Life is full of problems. 

On any given day, a typical person is wrestling with a problem in their mind, triggering uncomfortable feelings: lingering anxiety, spotlight pressure, one-way decision, regret that drives away sleep, agony.

I write this to remind us to realize and cherish those moments in a day where we feel at peace with ourselves, with our circumstances, with our life.

We cherish these moments by being present—taking a short walk around the garden, even at work, especially at work. Spending a few minutes looking out of your window, noticing things: children, beggars half-inside waste plastic bags digging for scraps, a dog basking in the sun.

We cherish peace of mind by being present because, really, we do get lost in our problems—they consume every fiber and neuron of our body. They suffocate us.

That's why we must make it a point to catch up with our normal, carefree breathing by being present and grateful. Because ultimately, we're not chasing peace of mind—we're simply training ourselves to notice its presence.

Other Readings:
The Quiet Power of Gratitude
An Op-ed from DUCT Rivers 

Sam Madlala 

Blog 85/95

A News Letter -- Surviving The Middle

 

On Playing the Long Game

“You don’t need to be the fastest learner. You need to make your mind up about the few things that you really want to do, and execute with a much longer timeframe than most people. There isn’t much competition left after the first few years. After a decade, it almost feels lonely.”

— Orange Book

A reminder that the real edge comes not from talent or speed, but from time. Time is the great filter. If you can stick with your craft long enough, what once felt like a competition becomes a quiet path with fewer travelers.

On Mastering the Middle

“People only root for others at two times: First, when they’re at the beginning of the race. Second, when they finish. Neither is when you need it. So, you have to master the middle. The boring, exhausting, soul-crushing middle. That’s where the winning happens. On your own.”

This quote hits hard. Everyone shows up to clap at the start or the finish. But mastery is earned in that quiet, thankless stretch in between — where no one is watching, and nothing is glamorous.

On Embracing the Silent Struggle

“In any difficult pursuit, there’s a tough middle where motivation fades. The ability to ‘go dark’ — to block out noise, turn inward, and embrace the silent struggle — is a powerful advantage. Flow and resilience come when you stop explaining yourself and just keep moving.”

— Sahil Bloom

To “go dark” is to stop performing for the world and start performing for yourself. It’s a shift from needing applause to needing truth. The greatest work happens when you no longer need to be seen — only to move forward.

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THE DIP — Book by Seth Godin

Almost everything in life worth doing is controlled by the Dip.

And then the Dip happens.

• The Dip is the tough stretch between starting and becoming great — a grind that looks like a wall but is really the way through.
• The Dip is the maze of bureaucracy and paperwork you have to get through just to register your business — policies, forms, and red tape that test your will before you’ve even begun.
• The Dip is the long stretch between beginner’s luck and real accomplishment.
• The Dip is the set of artificial screens set up to keep people like you out.

Successful people don’t just survive the Dip. They lean into it. They push harder, adapt, and change the rules. Recognizing you're in the Dip doesn’t mean accepting it quietly. The Dip shrinks faster when you work it down with intent.

Thanks for Reading -

Cancelo Alvarez 🇿🇦