When faced with a decision we lack technical expertise for, like buying a used car, our brains substitute a simpler question: "Do I trust the person selling it?" The seller's character heavily influences our valuation of the asset, often more than a technical inspection.

The "Liking-Loving Tendency" causes investors to identify personally with their holdings. They ignore faults, favor associated things, and distort facts to maintain positive feelings. This emotional attachment leads them to rationalize bad news and hold deteriorating assets for too long, destroying capital.

A manufactured persona feels uncanny and creates a bait-and-switch for employees. Instead, identify a founder's true archetype and strategically amplify the authentic traits most useful for the business, like turning up the volume on a specific aspect of their personality.

As a founder, you'll likely experience a predictable social journey. First, people dismiss your ambition. Then, they diminish your early efforts. Once you gain traction, they become fans asking for perks. Finally, they claim they supported you all along. Understanding this pattern helps you ignore the need for external validation.

Unlike first-time founders who struggle for attention, successful repeat founders face the opposite problem. Prospects tend to agree with their ideas due to their reputation, creating 'happy ears' and masking the truth until a payment is requested.

A successful startup often resembles a cult, requiring a leader who communicates their vision with unwavering, first-person conviction. Hiding the founder behind polished PR spokespeople is a mistake; it neuters the contagious belief required to recruit talent and build a movement against impossible odds.

Intuition is often overridden in professional settings because it's intangible. A bad decision backed by a rational explanation is often more acceptable than a good one based on a "gut feeling," which can feel professionally risky.

A founder's credibility acts as a multiplier on the perceived value of their narrative. An entrepreneur like Elon Musk, with a track record of success, receives a "multiple expansion on trust," allowing their futuristic stories to attract capital at valuations and scales that a first-time founder could not achieve.

The brain's tendency to create stories simplifies complex information but creates a powerful confirmation bias. As illustrated by a military example where a friendly tribe was nearly bombed, leaders who get trapped in their narrative will only see evidence that confirms it, ignoring critical data to the contrary.