Eat People

About the Author

Andy Kessler, a former hedge fund manager, has carved a niche for himself as an astute observer and commentator on the financial and entrepreneurial landscape. With a background that includes work at AT&T Bell Labs, PaineWebber, and Morgan Stanley, Kessler co-founded Velocity Capital Management and authored several influential books, including the New York Times bestseller "Running Money". His deep experience in analyzing and investing in tech companies provides the foundation for his insights in "Eat People," where he explores the dynamics of disruptive entrepreneurship and wealth creation.

Main Idea

"Eat People: and Other Unapologetic Rules for Game-Changing Entrepreneurs" by Andy Kessler is a bold guide for those looking to disrupt industries and create transformative businesses. The book champions the concept of "creative destruction," where new innovations replace outdated methods, making industries more efficient and wealthier. Kessler's provocative title, "Eat People," serves as a metaphor for eliminating unproductive jobs and processes, thereby enhancing overall productivity. He argues that true wealth and societal progress are achieved not through maintaining the status quo but through relentless innovation and efficiency.

Table of Contents

1. Something From Nothing
2. Invent or Help Invent the Future
3. If It Doesn't Scale, It Will Get Stale
4. Waste What's Abundant to Make Up for What's Scarce
5. When in Doubt, Get Horizontal
6. Intelligence Moves Out to the Edge of the Network
7. Wealth Comes from Productivity; Everything Else Is Gravy
8. Adapt to Humans; Don't Make Them Adapt to You
9. Be Soylent - Eat People
10. Markets Make Better Decisions Than Managers
11. Use Zero Marginal Cost to Create a Flood (or Someone Else Will)
12. Create Your Own Scarcity with a Virtual Pipe
13. Bonus Rule: Money Sloshes to the Highest Returns

1. Something From Nothing

Kessler opens by emphasizing the importance of creating value from seemingly nothing. He recounts his experiences as a hedge fund manager, where spotting trends early and backing visionary entrepreneurs led to significant profits. The key takeaway is the necessity of innovation and foresight in identifying and capitalizing on emerging opportunities. As Kessler puts it:

"It's not just finding driven people with the character and focus and guts to succeed. It was also about being in the right zip code, finding the next big application and companies and industries well before they took off, when you could invest on the cheap and then sell when they were dear." - Andy Kessler【4:13†source】

This principle encourages aspiring entrepreneurs to seek out nascent opportunities and be willing to invest in the future.

2. Invent or Help Invent the Future

Kessler urges readers to be involved in the process of invention, either directly or indirectly. He believes that contributing to future advancements, whether by creating new technologies or supporting those who do, is vital for societal progress. The idea is to focus on productivity-enhancing innovations that can improve standards of living and generate wealth. This principle aligns with the broader theme of the book: that true progress comes from proactive creation and disruption.