Information Versus Knowledge

From a definitional standpoint, sometimes it's best to know what something isn't in order to know what it is. That said, let's consider the distinction between information and knowledge to better understand what constitutes knowledge.

Every day we are inundated with information, coming to us from smartphones, laptop computers, TV’s, and people. Regardless of the medium, information comes to us as data or through observation. Our brains continuously sift through and filter what is useful and relevant, disregarding what is not. Knowledge then occurs as a result of combining information, experience, and intuition.¹ We live our entire lives acquiring knowledge; what we do with it is up to us. Additionally, wisdom is the ability to discern when and how to use your knowledge; in other words, wisdom is the ultimate incarnation of knowledge.

“It is the greatest truth of our age: Information is not knowledge.”

—Caleb Carr

We see two familiar themes here we’ve previously discussed. First, the internet democratized access to information, and technological advancements brought this information into the palms of our hands. An obvious, yet necessary, observation is that we take in troves of information compared to what we consumed in the pre‐internet era. Second, our brains are responsible for sifting through all this information, sorting what is and isn't useful, which is where our mental models and thinking patterns come into play. This is why (mental) health is so important, because it determines the filters and models through which we see (and process) the information of the world. Each individual's filters and personal philosophies—human subjectivity—determine the meaning and value of specific information. Our logical brain and emotional brain help us in deciding which information is useful and valuable. For example, I find 0% value in knowing how a toothbrush is made, because the information has no utility to me. Plus, I'm not interested in learning more, out of curiosity, because it's not worth my time or energy.

There's no doubt that the internet democratized access to information. By extension, the democratization of information supports the democratization of knowledge, because you can (more easily) find information that is valuable to you. With this information in mind, let's explore the value of knowledge, status, and influence in today's world.

Using Knowledge

Let's home this knowledge to the hypothetical goal of finding a new job, with higher pay. Assume you are a tax attorney, with 15 years of experience. For the past 5 years, as a hobby, you learned about Bitcoin because you are incredibly interested in the evolving space. Plus, you started getting questions from your clients about how Bitcoin is taxed. Not many, but some. You've listened to and read hundreds of hours’ worth of information on Bitcoin, thanks to YouTube and Substack. Over the years, the collective interest in Bitcoin has increased, which means more people are buying it. As a result, this means more people need tax advice for their Bitcoin holdings. As luck would have it, you are knowledgeable in both tax law and now Bitcoin. Given your enhanced knowledge coupled with the high demand for tax attorneys specializing in Bitcoin, you are now well‐positioned to find yourself a higher‐paying job. Bravo.

“You get rewarded for unique knowledge, not for effort. Effort is required to create unique knowledge.”

—Naval Ravikant

As you’ll recall from Chapter 1, there are three primary considerations when choosing a profession: your interests, your skills, and what the market will reward you for. How you wield your productivity superpowers is unique to you. You discovered that your interest and knowledge in Bitcoin, coupled with your skills and knowledge as an attorney, are something that the market will reward you for, and handsomely. This is an example of specialization, which supports economic prosperity. The father of economics, Adam Smith, showed us that specialization is healthy for the economy, because it offers increased efficiency and productivity—to you, to your clients, and ultimately to society. This is a net benefit all around.

This hypothetical highlights that increased knowledge has the potential to lead to increased specialization. It also shows that the advancements in technology (in this case, blockchain technology and Bitcoin) have the potential to lead to new marketplaces of work.

The Knowledge Doubling Curve

Knowledge is growing at exponential rates, and the velocity of technological advancements is increasing. This has, and will continue to have, wild implications for the way we make, spend, save, and invest money. Richard Buckminster Fuller, an American inventor and futurist, created the concept of the “Knowledge Doubling Curve” in 1982, after he noticed that until the year 1900, human knowledge doubled approximately every century. By the end of World War II, knowledge was doubling every 25 years. Further, he predicted that our knowledge would double every 12 months by 2020.² We are now past 2020, which invites the question: what does the knowledge doubling curve look like today? According to IBM, the build‐out of the internet is leading to the doubling of knowledge every 12 hours (industry dependent).³ Hang on to your seats, friends.

One interesting consequence of the knowledge doubling curve, is the fact that relevant knowledge is increasing faster than we can even absorb. Counterbalancing this, however, is the fact that the useful lifespan of knowledge is decreasing. Becoming comfortable with continuously processing new information and reiterating information, is a must.⁴ In our current information paradigm, knowledge really does occur as a result of combining information, experience, and intuition.⁵ This is where the elements of creativity and innovation come to the forefront, as we're required to collect and connect dots in ways that look different from the past. The future is creative.

Creative innovation happens by taking new information and melding it with existing information, in novel ways. New and additional information become available, enabling further iterations on the original innovation. A constant feedback loop is in motion, because of how much and how fast information is coming our way.

Now consider this: the knowledge of money and investment also has exponential power—exponential, wealth‐creation power. The more informed you are about making, saving, and investing money, the better equipped you are to use that knowledge for wealth creation purposes. As we saw in Chapter 5, 10 million Americans opened up a new brokerage account in 2020, and access to information had something to do with that.⁶ People are increasingly empowered by access to vast knowledge, unlocking monetary upside and human potential. This is just one reason why the new wealth paradigm is so promising.

Status Through Abilities and Achievements

In the hunter example, status resulted from his abilities and achievements through hunting. In today's world, status may result from your abilities or achievements through education or occupation—in other words, your ability to gain knowledge, and use knowledge to create value through your work efforts. More often than not, high‐status education opens doors to high‐status jobs—often, but not always.

In the realm of education, Ivy League schools tend to garner high social status. Ivy League schools garner high social status because they are incredibly selective, historically elite, and academically rigorous. Those deemed capable of excelling in this educational environment are also, by extension, deemed capable of excelling in a professional environment, thereafter. Learn more, earn more. These earnings through income are received in exchange for the value contributed to society. There is a shared belief around this thinking, which in turn, preserves the status quo. Although, this belief is being revisited, as education is being reimagined and redefined.

In the realm of occupation, professions like lawyers and doctors hold high social status. These professions acquire high status, because they require rigorous academic commitment, and contribute vital value to society in the form of saving lives and maintaining social order. These occupations are absolutely necessary for the health and stability of society. That said, their status is utterly warranted. Additionally, other professions are being added to this high‐status stratosphere as our society's needs expand and evolve.

The road from high‐status education to a high‐status job is generally a freeway, but this roadmap is being completely remapped, offering new routes to social status. Entrepreneurs are a great example of those inclined to take the road less traveled. As we saw in Chapter 3, the entrepreneurial spirit animals are alive and well, driving innovation and wealth creation for self and others. Entrepreneurs navigate unchartered territory, reimagining the road to success.

Additionally, small business owners (most of whom don't attend Ivy League schools) create value for society, and do so for the long‐term. Notably, small businesses with 500 employees or less, make up 99.9% of all firms in the United States. From 1995 to 2020, these businesses created 12.7 million net new jobs for our economy!¹² These small businesses may include medical or legal businesses, but the point is there are many ways to create value for society, which lead to social status.

Entrepreneurs add remarkable value to society through their ambitious endeavors—exploring the path less traveled. Take, for example, Sir Richard Branson, founder of Virgin Atlantic. Branson didn't go to college, but he did start many successful businesses that contribute value across society and across industries: travel, telecommunications, music, and leisure. I had the pleasure of meeting Branson on his island, Necker Island, in the winter of 2019—ahead of the world closing down. His authenticity, magnetism, and kindness were awe‐inspiring. You really get the sense that he operates from a place of intuition, from his authentic core. He follows his own roadmap, fueled by vision, executed with drive.

Sir Richard Branson is a prime example for our analysis on status, because he achieved status not only by his professional abilities and achievements, but also by his associations and affiliations. The “Sir” in front of Richard Branson's name is a title bestowed on a man who is recognized for his extraordinary work by the British monarchy. When a man is knighted, he is allowed to use Sir in his title. Being knighted means belonging to the knighthood. This knight, Sir Richard Branson, perfectly illustrates how status can be attained through different pathways. This perfectly transitions us to the next section.

“There is no greater thing you can do with your life and your work than follow your passions—in a way that serves the world and you.”

—Sir Richard Branson

Status Through Associations and Affiliations

Status is also earned or granted through association and affiliation. Education and occupation aside, consider the associations or affiliations (perhaps through membership) that are deemed valuable in your society, community, or among your peers. This could be anything from associating with a certain group of friends, to belonging to the local country club (to use a cliché example). Membership to a country club is one instance of how financial wealth and status are interconnected, because you can pay your way into the local country club (i.e., status). Furthermore, it's possible to monetize this status by hosting clients at the golf club and doing business on the turf. Other country club members may be more inclined to do business with you, because you both belong to the same club. Or non‐country club members may want to do business with you, because you belong to the country club. Ultimately, status supports making money and financial wealth creation.

The country club membership is a common and familiar example of status granted through association or affiliation, but the membership archetype is changing. Looking across the pond, London is known for its elite members clubs, like Annabel's, 5 Hertford Street, the Arts Club, and newcomers like Maison Estelle. Now, the proliferation of membership clubs is meaningfully moving into cities within the United States. The Wall Street Journal published an article in August 2022 titled “Welcome to the Golden Age of the Private Club.”¹³ Does this mean Americans are becoming more status‐oriented? Maybe, maybe not. The general narrative behind this blossoming Golden Age is that the pandemic ushered in the demand for curated spaces, with curated people. This was a catalyst, but what's fueling the sustained growth of membership clubs is that people are valuing intangibles over the tangibles: shared values, a sense of belonging, and curated communities. Plus, there's sharp demand for shared experiences.

Membership clubs are an example of how you can pay your way into status, and many people are lining up for the opportunity, with wallets open. When this Wall Street Journal article went to print (August 2022), there were 7,000 people on the waiting list to get into ZZ's, a Miami restaurant and membership club.¹⁴ Further, Soho House had a waitlist of 79,000 people, which is a record number for the company. Soho House first opened in New York City, in 2003; now, there are 38 locations globally.¹⁵ Plus, we're seeing membership clubs, reconceptualized and reimagined, being used for remote workspaces: Chief, NeueHouse, and Zero Bond. People are passing on clothing drenched in logos, and opting to see and be seen in communities that align with their values, interests, and taste.

Although, chasing status through association or affiliation is a slippery slope, because there's no finish line. For this reason, consciously playing the status game is a self‐destructive pursuit. I remember one friend telling me that he became addicted to the pursuit of status, caving to the pressure of staying relevant and admired on the global stage. His longtime girlfriend, who is an amazing person, left the relationship because all his time and energy was devoted to accessing the next best thing, the next exclusive event. He has all the social status one could dream of, all the while living in an empty home, albeit with some magnificent art pieces. He has the knowledge, status, influence, and money, yet attained all at the expense of love.

Moving from the physical world to the digital world, let's consider social status on social media. Status on social media platforms is reflected by how many followers you have, how many people engage with your content, and of course, the content itself. Again, it's all relative, but this relativity is morphing when you consider how we now have exposure to more people than those just within our immediate neighborhoods. Whether your associations and affiliations are offline or online, they influence how you are perceived in society. People can infer how you may act in a situation, based upon your associations and affiliations. This inferred information is valuable to society.

Status Symbols

While status isn’t (tangibly) visible to the naked eye, status symbols certainly are. The term status symbol was coined by German sociologist, Max Weber, to describe the relationship between the goods people buy in connection to their social status.¹⁶ Typically, the good is intended to signify the owner's social standing in society. Status symbols vary between societies, and evolve with time. In antiquity, the Greeks and Romans considered royal purple pigment a status symbol.¹⁷ Today, status symbols include owning a Tesla (tangible) or having a blue check on Twitter (intangible). Status may also be showcased by who or where you vacation, or what member's club you belong to, which can all be shared via social media. Instagram and TikTok, for example, enable the broadcasting of experiences with friends, all the while broadcasting social status. Status symbols are trending from conspicuous consumption to inconspicuous consumption. These two socioeconomic status terms are worth exploring, if interested. Summed up: inconspicuous consumption is “quiet money.”

What's also fascinating, tethering the conversation back to Chapter 2, is the move toward values‐oriented status. Like values‐based spending or conscious consumption, people are touting their associations and affiliations with values‐based brands. Basically, luxury goods are out and luxury (values‐oriented) lifestyles are in.

“Don't worry about the level of individual prominence you have achieved; worry about the individuals you have helped become better people.”

—Clayton M. Christensen

Personal Brand and Influence

Here we are again, with another example of how the internet changed the value dynamics of a fundamentally familiar concept—in this case, influence. The internet enables people to “scale” their influence in local communities, in the wider world, and in the digital world. With this grand optionality at hand, people are considering how their identity translates online. Intentionality definitely goes into architecting an online identity, or as we now call it—a personal brand. The term personal branding was coined by Tom Peters in his 1997 article titled “The Brand Called You.”¹⁹ In his article, Peters addresses the relationship between personal brand and influence. A personal brand is used to grow influence. And influence is used to motivate others and monetize for yourself. Therefore, it's important to ask the question of what change do you want to motivate in others? What value do you want to deliver to the world? These questions roll out the red carpet and invite us to analyze ourselves, and how we interface and present to the world.

Branding was traditionally reserved for corporations, but now people are branding themselves just like corporations always have. We're living in a time where “the company” takes on an archetype of an individual and “the individual” takes on the archetype of the company. Companies recognize that a relatable brand personality is key for business success—particularly these days (a nod to the Great Restructuring currently underway). We form opinions about companies, just as we do about people. That said, consumers want to connect and know what values a company represents—what the company stands for. A company might exhibit or embody the same attributes as a friend or a trusted ally. The through line here, the theme we keep seeing, is that people (both investors and consumers) are placing a high premium on values: values‐based investing, values‐based spending, values‐based companies, and values‐based brands.

On the flip side, individuals are taking on the archetype of the company. This reminds me of the Jay‐Z lyric: “I'm not a businessman, I'm a business, man.” Individuals are considering the value and influence they can offer—and how to do so, both online and offline. People are exploring their relevance in the marketplace, and clearly articulating their value proposition. Personal branding, I believe, isn't about portraying something that isn't there (inauthentic), but, rather, showing what is (authentic). For so long, many corporate cultures required conformity—in both appearance and ideals. But over time, cultural shifts are celebrating authenticity—in all its forms—untethered from the narrowly defined conformity of the past. Our ability to distinguish and differentiate is now admired. In fact, it's required from a personal brand and influence perspective. This is great for business, because consumers love authenticity. Sex sells, but so does authenticity. This really puts a new perspective on the saying: “Take care of yourself, you are your most valuable asset” by Matshona Dhliwayo.

The internet, social media platforms specifically, astronomically amplify the reach and richness of knowledge, status, and influence. The question then becomes: What are you amplifying? What beliefs and behaviors are you motivating in others? There's a social responsibility inherent in the ability to wield influence. We must strive to put forth a model (meaningful) life, versus a model (superficial) life, by modeling the value of values.

The Influencer Economy

Speaking of models, some people associate “influencers” with models posing in swimsuits on Instagram—although the influencer economy is anything but just models in swimsuits. The term influencer within the context of the influencer economy refers to those having a large following and impact on the beliefs and behaviors of their followers. Influencers make money in several ways, one of which is being hired as an ambassador for a corporate brand. What does this mean? It means a company hires an influencer to represent the brand to increase brand awareness. Companies turn to influencers they feel represent the brand personality, and influencers engage with companies who are aligned with their personal brand. It’s a reciprocal partnership that is authentic. Simply put, these partnerships work best when there is an alignment of values. Influencers help market a company's product to a new audience, their audience. As long as the influencer's endorsement is positive and authentic, then their followers may consider buying the company's product. The intention is for the influencer's influence to sway purchasing decisions in favor of the company’s product.

Corporations traditionally turn to A‐list celebrities as brand ambassadors, but they are now turning to influencers, too—particularly as a conduit to millennial and Gen Z consumers.²⁰ This makes sense, when you consider the hyper‐personalization and conscious consumption that these two generations are demanding. In my mind, influencers, archetypally, sit at the intersection between a celebrity and a friend. Some consumers find influencers more relatable and, therefore, feel a closer connection to the endorsement—assuming the endorsement is authentic. Data from September 2019, compliments of Morning Consult, show that about half of millennials and Gen Z consumers trust influencer recommendations when deciding whether to make a purchase.²¹

Serendipitous anecdote: Morning Consult provides brand intelligence analytics (among other data). Coincidentally, I watched Morning Consult's co‐founder, Kyle Dropp, build his personal brand all the while building the company, which is currently valued at over $1 billion.²² He's a prime example of someone who masterfully wove knowledge, status, and influence together, and did so—authentically. Kyle carries all the hallmarks of these intangible assets. First, he has academic achievements at Stanford and Princeton. Second, his previous occupation was as a professor at Dartmouth. Third, his status is fortified through all the associations he's affiliated with. But what's most important is the inspiration he ignites within those around him—his influence.

Kyle used to host dinners at his New York City apartment, curating a group of interesting people to share a meal together. During each dinner, he presented a question to the group, and everyone shared their answers. I vividly remember one question: What are your three favorite brands? I answered Harpers Bizarre, Doc Martens, and Four Seasons Hotels. Kyle created so much value for his dinner guests by making sure each person had the opportunity to introduce themselves and to share what they were working on. He also proactively introduced people with common interests and goals—a master connector. And he did so without asking for anything in return. To me, this is the epitome of influence—utilizing the asset for the greater good.

Perhaps you know the book How to Win Friends and Influence People by Dale Carnegie. This book, originally published in 1936, sold over 30 million copies worldwide, making it one of the best‐selling books of all time.²³ In his book, Carnegie lists timeless principles for winning friends and influencing people. This book predates the internet and influencer economy, but it goes to show that people have always placed great value on influence.

Whether your intention is to monetize influence or not, there is no denying that influence is valuable and its utility is derived from your knowledge, your status, and your personal brand. By the end of 2022, the influencer economy is expected to reach $16.4 billion.²⁴ For perspective on how fast this market is growing, it was valued at a mere $1.7 billion in 2016.²⁵ This industry stands on the shoulders of platforms such as Instagram, TikTok, Facebook, and YouTube. These technological innovations are expanding networks, and increasing the utility of information—birthing new economies, thereby providing additional avenues for wealth creation.

Having a wealth of knowledge, status, and influence is power, especially when translated into monetary gain. People are considered powerful when they have an abundance of one or all of these attributes. The way to attain outward power is by mastering your internal power, or personal power. The accumulation of knowledge, status, and influence all require an element of self‐knowing and self‐mastery, which is invisible to the outside world. While your internal power ultimately reveals itself to the outside world, there's less emphasis on parading it around in today's culture. The theatrics around power parading are dissolving; humility and authenticity are raining all over the power parades. The current paradigm shift supports the influencing and advancing of society forward, in stealth mode.

“The measure of a man is what he does with his power.”

—Plato