Buffett's Three-Legged Stool

Shaan Puri discusses his framework for selecting partners and people to work with, building on Warren Buffett's classic three-part framework and adding his own critical fourth element.

Buffett's three-legged stool framework

• Select for three qualities: energy, intelligence, and integrity
• All three legs are required - missing one causes the stool to fall over
• Energy + intelligence but no integrity = smart crook
• Energy + integrity but no intelligence = won't get anywhere

Shaan's fourth leg: Being "down"

• The highest priority bit - everything else is secondary
• "Down" encompasses multiple meanings:
  • Down to try it - will take a half-baked idea and give it a shot
  • Down for adventure - chooses interesting story path over safe path
  • Down to buckle down and grind - won't run away from pain or difficulty
  • Down for you - having somebody who's down for you personally

Real-world example: Ben (Shaan's partner)

• Had a SaaS business doing $1M/year in profit
• Was "down" enough to join a random, undefined side project
• Didn't need everything figured out to commit
• Went through 90 days of intense work without hesitation
• Has done 5-7 different projects together, all successful and fun

Network selection and self-selection

• Your network determines your outcomes - income averages the five people you hang out with most
• Same principle applies to ideas and thoughts - you "dollar cost average" into the thoughts of your network
• Info diet matters:
  • Content you consume shapes your thoughts
  • Consuming same content as everyone = same thoughts as everyone
  • Differentiate your info diet to differentiate your results

Examples of network self-selection

• Geographic location (moving cities)
• Social platforms (Twitter, TikTok, Reddit communities)
• Activities and hobbies (jiu-jitsu vs. elliptical)
  • Jiu-jitsu: develops skill, builds community, builds toughness, teaches mental resilience and leverage
  • Elliptical: just you and yourself at level seven
• Content consumption patterns
• People you spend free time with

Core principle

• You can win anywhere, with anyone, in any industry
• But why not increase your odds and make things easier?
• No bonus points for doing everything the hard way
• Differentiate upstream factors (info diet, people, activities) to get different downstream results