Ryan Holiday uses Elon Musk as a case study for how genius can curdle. When a brilliant leader stops receiving challenging external inputs, surrounds themselves with sycophants, and starts to believe their own hype, their decision-making faculties degrade, leading to poor outcomes and a loss of wisdom.

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Powerful figures like Trump and Musk strategically deploy headline-grabbing announcements as 'weapons of mass distraction.' This is not random behavior but a calculated tactic to divert public and media attention away from core weaknesses, whether it's a political scandal (Epstein) or a flawed business model (Tesla as just a car company).

The personality trait that drives outlier entrepreneurial success isn't mere ambition, but a "tortured" state of mind. These individuals feel a constant, painful inadequacy that compels them to achieve extraordinary things. This drive often comes at the expense of their personal well-being, family life, and mental health.

People surrounding a so-called genius, like Picasso's friends or employees at cult-like startups, often tolerate terrible behavior. They rationalize the unpleasantness by telling themselves they are part of an extraordinary, history-making experience, which creates a toxic enabling environment.

Musk's success stems from his unique ability to attract hyper-intelligent, maniacally driven individuals. These people are drawn to his high-stakes, high-pressure environment, choosing to "burn out under Musk" rather than be bored elsewhere, creating an unparalleled human capital advantage.

While experience builds valuable pattern recognition, relying on old mental models in a rapidly changing environment can be a significant flaw. Wise leaders must balance their experience with the humility and curiosity to listen to younger team members who may have a more current and accurate understanding of the world.

Leaders are often insulated from the daily operational friction their teams face. This creates an illusion that tasks are simple, leading to impatience and unrealistic demands. This dynamic drives away competent employees who understand the true complexity, creating a vicious cycle.

Founders often start with strong intuition but lose it after achieving success. This occurs because long-held societal conditioning, which teaches individuals to distrust themselves and outsource authority to experts, resurfaces and mutes their inner voice.

The intense, unreasonable passion that fuels hyper-growth is the same trait that can lead a founder to make reckless, company-threatening decisions. You can't have the creative genius without the potential for destructive behavior. The same person who clears the path can also blow everything up.

The real danger for leaders comes during great success, when it is easy to become detached from reality. Avoiding the bubble created by executive perks requires a conscious effort to stay grounded, as this is when judgment is most at risk.

The worship of founders like Mark Zuckerberg leads to a lack of internal pushback on massive, ill-conceived bets. Swisher points to the billions spent on the metaverse as a mistake made on an "awesome scale" because no one around the founder was empowered to challenge the idea.