Last week had an interesting conversation with an old friend on the current ‘hot skills’ that rule the job market. We both have young kids. We also debated what could be the ‘best’ disciplines for them when they grow up. As we talked, what was evident to both of us was that this list of sought-after skills changes every decade. The conversation led me to think something adjacent. Let me bring up the topic here and invite your ideas.
In the world of financial investments, we have a bunch of asset classes (gold, equity, bonds, real estate, etc) to choose from. There is no way any investor can - leaving aside the ‘lucky’ ones - consistently strike gold, i.e., get spectacular returns in every period. It would mean perfectly timing the jump from one asset class to another – gold to equity, equity to real estate and so on. This is nearly impossible. What is the practical solution? We know it. DIVERSIFICATION. Reduce risks and trace a middle path.
You must be already seeing the parallels with investing in self? We cannot predict which set of skills can consistently produce returns (i.e., high wages) in the labor market. Specially in the current digital age, this has become ever more volatile. Today’s hot skills are obsolete or automated away in 10 years. Can we afford to deeply invest in acquiring one or two skills? This is like investing all your money in the current hot stock and hoping for the best. But then how to intelligently ‘diversify’ when investing in human capital?
The problem is compounded as today we have an unprecedented choice in learning new subjects from the fields of science, art, languages, medicine, management and so on and so forth. Like the fluke investor, you have to be ‘lucky’ to learn the right subjects that keep you employed at the top of the curve for 30 to 40 years. To properly diversify in this tricky marketplace, I think one has to “discover” one’s core underlying skills. These can be as basic as ‘I am good with numbers’, ‘I learn abstract concepts well’, ‘I handle people well’, ‘I can produce original work’, ‘I have an elephant’s memory’, 'I cook well' and so on. And then, invest in mastering new subject areas throughout your life which fully exploit your core faculties. This will ensure you diversify, but not randomly. It is based on your strong foundational skills.
How would you recommend - in the race with machines - we stay relevant for the next hundred years? If you read this, drop a comment. Would love to read them.
In the world of financial investments, we have a bunch of asset classes (gold, equity, bonds, real estate, etc) to choose from. There is no way any investor can - leaving aside the ‘lucky’ ones - consistently strike gold, i.e., get spectacular returns in every period. It would mean perfectly timing the jump from one asset class to another – gold to equity, equity to real estate and so on. This is nearly impossible. What is the practical solution? We know it. DIVERSIFICATION. Reduce risks and trace a middle path.
You must be already seeing the parallels with investing in self? We cannot predict which set of skills can consistently produce returns (i.e., high wages) in the labor market. Specially in the current digital age, this has become ever more volatile. Today’s hot skills are obsolete or automated away in 10 years. Can we afford to deeply invest in acquiring one or two skills? This is like investing all your money in the current hot stock and hoping for the best. But then how to intelligently ‘diversify’ when investing in human capital?
The problem is compounded as today we have an unprecedented choice in learning new subjects from the fields of science, art, languages, medicine, management and so on and so forth. Like the fluke investor, you have to be ‘lucky’ to learn the right subjects that keep you employed at the top of the curve for 30 to 40 years. To properly diversify in this tricky marketplace, I think one has to “discover” one’s core underlying skills. These can be as basic as ‘I am good with numbers’, ‘I learn abstract concepts well’, ‘I handle people well’, ‘I can produce original work’, ‘I have an elephant’s memory’, 'I cook well' and so on. And then, invest in mastering new subject areas throughout your life which fully exploit your core faculties. This will ensure you diversify, but not randomly. It is based on your strong foundational skills.
How would you recommend - in the race with machines - we stay relevant for the next hundred years? If you read this, drop a comment. Would love to read them.
As we modernize as society and get westernized, we increasingly are getting economically driven. From big government decisions to small personal choices are all being made keeping in mind the monetary benefits mostly in the short term. All our educational and societal values lead to the same path. Though these are not necessarily wrong per se but for is not suitable for people who are meritorious and creative. Not fulfilling enough for people who seek higher avenues in life.
ReplyDeleteSo it is imperative for them to understand their core creative strengths early in life as you mentioned above. Those should be encouraged to be cultivated and enjoyed. This would help children make their decision if they can devout their life on similar path or that their infatuation has greatly reduced. Because many a times it is not possible to read ones own mind with clarity. It comes through patience, guidance and time.
One's life is most fulfilling if he enjoys what he does! Then that becomes his playfield.