Writing Philosophy Reveals Hidden Dynamics of Innovation and Business

The Unseen Architect: How Packy McCormick's Writing Philosophy Reveals the Hidden Dynamics of Innovation and Business Building

This conversation with Packy McCormick, proprietor of Not Boring Media, offers a profound look beyond the surface of content creation and venture capital, revealing how the act of writing itself is a crucible for clear thinking and strategic advantage. The hidden consequences of this discussion lie in the understanding that the most durable ideas, and indeed the most successful companies, are forged not in rapid iteration or immediate wins, but through the deliberate, often arduous process of articulating complex thoughts. McCormick's insights suggest that the discomfort of writing and the patience required for its long-term payoffs create a powerful moat, separating those who merely react from those who strategically build. This piece is essential for founders, investors, and anyone seeking to understand how to cultivate enduring value in a world obsessed with speed and instant gratification.

The Friction of Clarity: Why Writing Begets Durable Ideas

In a digital landscape saturated with fleeting content, Packy McCormick champions writing as the ultimate tool for deep thinking and strategic differentiation. His journey, from a struggling startup to a thriving media empire, underscores a consistent theme: the power of articulating ideas on paper. This isn't merely about communication; it's about the fundamental process of thinking itself. The friction inherent in writing--the effort required to translate nebulous thoughts into concrete prose--acts as a powerful filter, killing bad ideas and sharpening good ones.

McCormick recounts his experience at Breather, a company whose business model, based on short-term leases for physical spaces, was fundamentally at odds with its expansion strategy. The leadership, influenced by the "move fast and break things" ethos of companies like Uber, pursued rapid supply growth without accounting for the operational realities of their model. This led to a glut of underutilized, costly spaces. It was during a Christmas break that McCormick and a colleague, armed with lessons from Richard Rumelt's Good Strategy/Bad Strategy, meticulously wrote down a plan to fix the company. This written document, clear and strategic, not only unified the executive team but also fundamentally altered how people worked, shifting the company from a negative 25% margin to a positive 25%. This experience was a revelation: writing could change internal operations and salvage a failing business.

"Wow, like writing actually can kind of like change the way that people even work inside of a company if you can communicate an idea clearly."

-- Packy McCormick

This principle extends beyond internal strategy. McCormick highlights how foundational tech ideas, like Ben Thompson's aggregation theory or Chris Dixon's writings, are predominantly written artifacts. He contrasts this with podcasts and videos, which, while excellent for engagement and personal connection, rarely serve as the primary vehicle for fully formed, novel ideas. The difficulty of writing, he argues, is precisely why many founders and experts don't do it, leaving a vacuum for those willing to put in the effort. This creates an opportunity for "personal monopolies"--unique intersections of interests that, when articulated through writing, can establish a distinct voice and perspective.

The Unseen Advantage: Why Delayed Payoffs Trump Immediate Wins

The conversation delves into the systemic advantage of embracing delayed gratification, particularly in the context of innovation and investment. McCormick shares his personal journey of navigating public criticism, especially around his early crypto writings. The intense backlash he faced after a poorly articulated point on a podcast, amplified online, was brutal. Yet, he frames this experience not as a failure, but as a critical turning point. This "scar tissue," as he calls it, built resilience and humility, forcing him to re-evaluate his convictions and refine his thinking.

"And so that was I like that was actually I think a good confidence turning point. And like not just me, like I think actually like people, and I don't think I'm just feeling this, like I think people lost confidence like in anything that I said after that experience, which at the time was like brutal, and now I think it was like the greatest thing in the world because one, I think just going through that, like you realize it actually doesn't matter, and people forget."

-- Packy McCormick

This period of public scrutiny, while painful, paradoxically provided a competitive advantage. By enduring the "punch in the face" and emerging with a clearer understanding of his own convictions, McCormick developed a more robust framework for evaluating ideas and investments. This contrasts sharply with conventional wisdom, which often favors quick wins and visible progress. The podcast highlights how many seemingly obvious solutions fail because they don't account for downstream consequences or the long-term effort required.

McCormick’s venture capital thesis also reflects this preference for delayed payoffs. He is increasingly drawn to "hard things"--complex, vertically integrated businesses that compete directly with incumbents, such as SpaceX, Anduril, or Base Power. These ventures require immense upfront investment and patience, offering little immediate gratification. However, their very difficulty creates a barrier to entry, allowing for significant long-term value creation. The analogy of building an ISP in Colombia, Somos Internet, illustrates this: a fully integrated, superior product that takes years to build, but ultimately owns critical infrastructure and offers a fundamentally better, cheaper service. This patient, capital-intensive approach, eschewing the short-term focus of many software-only plays, is where he sees enduring competitive advantage being built.

The "R" Pattern: How Innovation Faces Resistance and Eventually Wins

The conversation explores a recurring pattern in innovation, what the host terms the "R pattern," where new technologies are initially met with resistance from the established order. From Socrates' skepticism of writing to symphony orchestras decrying recorded music, history shows a consistent narrative: incumbents, threatened by disruption, shift the focus from outcomes to process, or lobby against the new technology.

McCormick’s own experience with the "Internet Contrarian" piece, where he predicted the dot-com crash while others were euphoric, serves as a powerful example. He faced ridicule for his bearish stance, a stark contrast to the prevailing optimism. This period of "information cascades" and "homogeneity of views" is a cautionary tale about the dangers of groupthink. While the current AI boom feels different--less about public novelty and more about powerful tools--the underlying human tendency to resist change persists.

The emergence of AI itself is analyzed through this lens. While many initially dismissed AI wrappers as lacking moats, McCormick acknowledges his own misjudgment, citing companies that have achieved significant growth by building superior products and user experiences. The key, he suggests, is not just speed, but structural differentiation and the ability to maintain that advantage over time. This requires a deep understanding of the industry and a willingness to tackle complex, capital-intensive problems--the kind of "hard things" that incumbents, bound by legacy systems and business models, are ill-equipped to address. The "win-win" philosophy of his new publishing venture, Infinite Books, exemplifies this: leveraging technology to empower authors with transparency and ongoing marketing, creating value for both the author and the publisher, rather than engaging in zero-sum battles.

Key Action Items

• Prioritize Written Articulation: Dedicate time each week to writing down your core ideas, strategies, and observations. Treat writing as thinking, not just communication. (Immediate Action)
• Embrace the "Hard Things": When evaluating opportunities, look beyond immediate payoffs. Invest in ventures that require significant upfront effort, capital, or technical complexity, as these often yield the most durable competitive advantages. (Longer-term Investment: 1-3 years)
• Cultivate Resilience Through Discomfort: Actively seek out feedback, even criticism, and view it as an opportunity to refine your thinking and build resilience. Do not shy away from public scrutiny when articulating your beliefs. (Ongoing Practice)
• Develop a "Personal Monopoly": Identify unique intersections of your interests and expertise. Focus on articulating these unique combinations through writing to build a distinct and defensible voice. (Immediate Action)
• Seek "Win-Win" Opportunities: When building businesses or forming partnerships, ensure that all parties benefit significantly. Avoid zero-sum dynamics, as these are rarely sustainable. (Immediate Action)
• Invest in Long-Term Time Horizons: Adopt an "infinite time horizon" mindset, similar to that of a grandfather with grandchildren or an endowment manager. Make decisions based on long-term value creation, not short-term gains. (Strategic Shift)
• Champion Underestimated Technologies: Pay attention to technologies or business models that are currently unfashionable or misunderstood but possess fundamental, long-term potential. (Investment Thesis Development: 2-5 years)