Quiet (30 page)

None of this is to denigrate those who forge ahead quickly, or to blindly glorify the reflective and careful. The point is that we tend to overvalue
buzz and discount the risks of reward-sensitivity: we need to find a balance between action and reflection.

For example,
if you were staffing an investment bank, management professor Kuhnen told me, you'd want to hire not only reward-sensitive types, who are likely to profit from bull markets, but also those who remain emotionally more neutral. You'd want to make sure that important corporate decisions reflect the input of both kinds of people, not just one type. And you'd want to know that individuals on all points of the reward-sensitivity spectrum understand their own emotional preferences and can temper them to match market conditions.

But it's not just employers who benefit from taking a closer look at their employees. We also need to take a closer look at ourselves. Understanding where we fall on the reward-sensitivity spectrum gives us the power to live our lives well.

If you're a buzz-prone extrovert, then you're lucky to enjoy lots of invigorating emotions. Make the most of them: build things, inspire others, think big. Start a company, launch a website, build an elaborate tree house for your kids. But also know that you're operating with an Achilles' heel that you must learn to protect. Train yourself to spend energy on what's truly meaningful to you instead of on activities that look like they'll deliver a quick buzz of money or status or excitement. Teach yourself to pause and reflect when warning signs appear that things aren't working out as you'd hoped. Learn from your mistakes. Seek out counterparts (from spouses to friends to business partners) who can help rein you in and compensate for your blind spots.

And when it comes time to invest, or to do anything that involves a sage balance of risk and reward, keep yourself in check. One good way to do this is to make sure that you're not surrounding yourself with images of reward at the crucial moment of decision. Kuhnen and Brian Knutson have found that
men who are shown erotic pictures just before they gamble take more risks than those shown neutral images like desks and chairs. This is because anticipating rewards
—any
rewards, whether or not related to the subject at hand—excites our dopamine-driven reward networks and makes us act more rashly. (This may be the single best argument yet for banning pornography from workplaces.)

And if you're an introvert who's relatively immune to the excesses of reward sensitivity? At first blush, the research on dopamine and buzz seems to imply that extroverts, and extroverts alone, are happily motivated to work hard by the excitement they get from pursuing their goals. As an introvert, I was puzzled by this idea when I first came across it. It didn't reflect my own experience. I'm in love with my work and always have been. I wake up in the morning excited to get started. So what drives people like me?

One answer is that even if the reward-sensitivity theory of extroversion turns out to be correct, we can't say that all extroverts are always more sensitive to rewards and blasé about risk, or that
all introverts are constantly unmoved by incentives and vigilant about threats. Since the days of Aristotle, philosophers have observed that these two modes—approaching things that appear to give pleasure and avoiding others that seem to cause pain—lie at the heart of all human activity. As a group, extroverts tend to be reward-seeking, but every human being has her own mix of approach and avoidance tendencies, and sometimes the combination differs depending on the situation. Indeed, many contemporary personality psychologists would say that
threat-vigilance is more characteristic of a trait known as “neuroticism” than of introversion. The body's reward and threat systems also seem to work independently of each other, so that the same person can be generally sensitive, or insensitive, to both reward
and
threat.

But I believe that another important explanation for introverts who love their work may come from a very different line of research by the influential psychologist Mihaly Csikszentmihalyi on the state of being he calls “flow.” Flow is an optimal state in which you feel totally engaged in an activity—whether long-distance swimming or songwriting, sumo wrestling or sex. In a state of flow, you're neither bored nor anxious, and you don't question your own adequacy. Hours pass without your noticing.

The key to flow is to pursue an activity for its own sake,
not for the rewards it brings
. Although flow does not depend on being an introvert or an extrovert, many of the flow experiences that Csikszentmihalyi writes about are solitary pursuits that have nothing to do with reward-seeking: reading, tending an orchard, solo ocean cruising. Flow often occurs, he writes, in conditions in which people “
become independent of the social environment to the degree that they no longer respond exclusively in terms of its rewards and punishments. To achieve such autonomy, a person has to learn to provide rewards to herself.”

In a sense, Csikszentmihalyi transcends Aristotle; he is telling us that there are some activities that are not about approach or avoidance, but about something deeper: the fulfillment that comes from absorption in an activity outside yourself. “
Psychological theories usually assume that we are motivated either by the need to eliminate an unpleasant condition like hunger or fear,” Csikszentmihalyi writes, “or by the expectation of some future reward such as money, status, or prestige.” But in flow, “a person could work around the clock for days on end, for no better reason than to keep on working.”

If you're an introvert, find your flow by using your gifts. You have the power of persistence, the tenacity to solve complex problems, and the clear-sightedness to avoid pitfalls that trip others up. You enjoy relative freedom from the temptations of superficial prizes like money and status. Indeed, your biggest challenge may be to fully harness your strengths. You may be so busy trying to appear like a zestful, reward-sensitive extrovert that you undervalue your own talents, or feel underestimated by those around you. But when you're focused on a project that you care about,
you probably find that your energy is boundless.

So stay true to your own nature. If you like to do things in a slow and steady way, don't let others make you feel as if you have to race. If you enjoy depth, don't force yourself to seek breadth. If you prefer single-tasking to multitasking, stick to your guns. Being relatively unmoved by rewards gives you the incalculable power to go your own way. It's up to you to use that independence to good effect.

Of course, that isn't always easy. While writing this chapter, I corresponded with Jack Welch, the former chairman of General Electric. He had just published a
BusinessWeek
online column called “
Release Your Inner Extrovert,” in which he called for introverts to act more extroverted on the job. I suggested that extroverts sometimes need to act more introverted, too, and shared with him some of the ideas you've just read about how Wall Street might have benefited from having more introverts at the helm. Welch was intrigued. But, he said, “the extroverts would argue that they never heard from the introverts.”

Welch makes a fair point. Introverts need to trust their gut and share their ideas as powerfully as they can. This does not mean aping extroverts; ideas can be shared quietly, they can be communicated in writing, they can be packaged into highly produced lectures, they can be advanced by allies. The trick for introverts is to honor their own styles instead of allowing themselves to be swept up by prevailing norms. The story of the lead-up to the Great Recession of 2008 is peppered, alas, with careful types who took inappropriate risks, like the former chief executive of Citigroup,
Chuck Prince, a former lawyer who made risky loans into a falling market because, he said, “as long as the music is playing, you've got to get up and dance.”

“People who are initially cautious become more aggressive,” observes Boykin Curry of this phenomenon. “They say, ‘Hey, the more aggressive
people are getting promoted and I'm not, so I'm going to be more aggressive too.' ”

But stories of financial crises often contain subplots about people who famously (and profitably) saw them coming—and such tales tend to feature just the kinds of people who embrace FUD, or who like to close the blinds to their offices, insulate themselves from mass opinion and peer pressure, and focus in solitude. One of the few investors who managed to flourish during the crash of 2008 was
Seth Klarman, president of a hedge fund called the Baupost Group. Klarman is known for consistently outperforming the market while steadfastly avoiding risk, and for keeping a significant percentage of his assets in cash. In the two years since the crash of 2008, when most investors were fleeing hedge funds in droves, Klarman almost doubled Baupost's assets under management to $22 billion.

Klarman achieved this with an investment strategy based explicitly on FUD. “At Baupost, we are big fans of fear, and in investing, it is clearly better to be scared than sorry,” he once wrote in a letter to investors. Klarman is a “world-class worrier,” observes the
New York Times
, in a 2007 article called “Manager Frets Over the Market, But Still Outdoes It.” He owns a racehorse called “Read the Footnotes.”

During the years leading up to the 2008 crash, Klarman “was one of the few people to stick to a cautious and seemingly paranoid message,” says Boykin Curry. “When everyone else was celebrating, he was probably storing cans of tuna in his basement, to prepare for the end of civilization. Then, when everyone else panicked, he started buying. It's not just analysis; it's his emotional makeup. The same wiring that helps Seth find opportunities that no one else sees can make him seem aloof or blunt. If you're the kind of person who frets every time the quarter is good, you may have trouble rising to the top of a corporate pyramid. Seth probably wouldn't have made it as a sales manager. But he is one of the great investors of our time.”

Similarly, in his book on the run-up to the 2008 crash,
The Big Short
,
Michael Lewis introduces three of the few people who were astute enough to forecast the coming disaster. One was a solitary hedge-fund manager named Michael Burry who describes himself as “happy in my own head” and who spent the years prior to the crash alone in his office in San Jose, California, combing through financial documents and developing his own contrarian views of market risk. The others were a pair of socially awkward investors named Charlie Ledley and Jamie Mai, whose entire investment strategy was based on FUD: they placed bets that had limited downside, but would pay off handsomely if dramatic but unexpected changes occurred in the market. It was not an investment strategy so much as a life philosophy—a belief that most situations were not as stable as they appeared to be.

This “suited the two men's personalities,” writes Lewis. “They never had to be sure of anything. Both were predisposed to feel that people, and by extension markets, were too certain about inherently uncertain things.” Even after being proven right with their 2006 and 2007 bets against the subprime mortgage market, and earning $100 million in the process, “they actually spent time wondering how people who had been so sensationally right (i.e., they themselves) could preserve the capacity for diffidence and doubt and uncertainty that had enabled them to be right.”

Ledley and Mai understood the value of their constitutional diffidence, but others were so spooked by it that they gave up the chance to invest money with the two—in effect, sacrificing millions of dollars to their prejudice against FUD. “What's amazing with Charlie Ledley,” says Boykin Curry, who knows him well, “is that here you had a brilliant investor who was exceedingly conservative. If you were concerned about risk, there was no one better to go to. But he was terrible at raising capital because he seemed so tentative about everything. Potential clients would walk out of Charlie's office scared to give him money because they thought he lacked conviction. Meanwhile, they poured money into funds run by managers who exuded confidence and certainty. Of course, when the economy turned, the confident group lost half their clients' money, while Charlie and Jamie made a fortune. Anyone who used conventional social cues to evaluate money managers was led to exactly the wrong conclusion.”