First Principles has been hyped since Musk's promotion, seeming to have infinite power and the potential to break through any barriers.
So what exactly are First Principles, and to what extent can they help us?
First, let's go back to Musk's original text:
I think it's important to reason from first principles rather than by analogy. The normal way we conduct our lives is we reason by analogy. We are doing this because it's like something else that was done, or it is like what other people are doing. With first principles, you boil things down to the most fundamental truths and then reason up from there.
In simple terms, it's like peeling an onion:
If you're willing to peel away my layers one by one
You'll be surprised, you'll be amazed
You are my most suppressed, deepest secret
The first layer of the onion is the essence of the problem, while the outer layers are the solutions formed by previous generations to solve this problem. Limited by the historical context, each layer is an attempt by previous generations to improve upon the previous layer, and each layer is imperfect (with trade-offs and compromises), thus forming a path of choices. This is understandable, as standing on the shoulders of giants not only reduces the scale of the problem but also reduces the cost of choices.
However, path dependence is also formed in this way. If we do not explore the trade-offs and compromises made by previous generations, we can only see the outermost layer of the onion and try to solve the imperfections of the outermost layer. Little do we know, under current conditions, the layers of compromise in the onion are no longer the optimal path of choice.
In essence, what we need to explore is the deepest secret of the onion. With the development of productivity, many previous compromises are now seen as foolish and incomprehensible. Choice is more important than effort. If we do not stand in front of the fundamental problem and make choices again, but only try to solve the problems left by previous generations, then no matter what, it is impossible to come up with disruptive innovations and breakthrough solutions.
The problem is like an onion, and First Principles allow us to return to the first layer of the onion, face the essence of the problem, make a new choice based on the current situation, and then proceed to solve the problem. Only in this way can we start from the first layer, reorganize the path of choices, and find the optimal solution.
To what extent can First Principles help us?
- Analyze problems calmly
- Identify key issues
- Think structurally
- A framework for breaking through any barriers
However, understanding First Principles does not guarantee your success. Just like investing, sometimes you need to boldly chase after bubbles :)