Understanding the Impact of Luck

How much of your achievement can be attributed to luck? Spoiler alert: it might be more than you think.

Consider the story of Michael Lewis, who found himself sitting next to the spouse of a prominent figure from Salomon Brothers, a major Wall Street investment bank. This chance encounter led to a job offer that he had little knowledge about, yet it placed him in the heart of a financial revolution. He was eventually assigned to be the in-house expert on derivatives, a pivotal role that allowed him to witness the unfolding madness of the financial world.

Years later, Lewis left Salomon Brothers to write "Liar's Poker," a book that became essential reading for those wanting to grasp the evolving landscape of Wall Street. In a speech at Princeton in 2012, he discussed the unexpected acclaim he received after the book's publication. "People called me a born writer," he recalled, but he recognized that luck played a significant part in his success. What were the chances he would sit next to that influential woman at dinner? Or that he would end up at a leading firm during a transformative period?

Lewis's experience illustrates a common tendency to rationalize success, often ignoring the role of luck. Successful individuals frequently believe that their achievements were inevitable. As he noted, even though he developed a passion for writing in college, he was discouraged by his professor, who advised against pursuing it as a career. Ultimately, Lewis's success stemmed from being in the right place at the right time, with just enough writing ability to capitalize on his luck.

Luck, whether acknowledged or not, is a crucial factor in success. Therefore, we must ask ourselves: how much of our own success can be attributed to luck?

The question of luck is important because it compels us to confront two realities: that many factors influencing our lives are beyond our control, and that we may be more fortunate than we realize. Recognizing this can inspire us to create opportunities for others.

Research by economist Yuezho Huo reveals that individuals who attribute their successes to external factors, such as luck, tend to be 25% more generous than those who credit their own skills. This underscores how acknowledging luck can lead to greater generosity and a more accurate understanding of our paths.