American Kingpin by Nick Bilton

[dlr1493]

Hi everyone, newbie here... I have just finished reading 'American Kingpin' by Nick Bilton- really enjoyed it and was an exciting read.

 

For those of you that aren't aware, it follows Ross Ulbricht, who was the creator of an online marketplace called 'The Silk Road' which mainly sold an array of drugs online, but also sold other illegal products. It touches on his life and belief system, then takes you through the story of the website's genesis and development and the events leading to his capture. 

 

Ross was a libertarian who justified his actions by stating it wasn't the government's job to decide what people did with their own bodies. He despised government intervention in people's life. After finishing, I naturally googled the case a little more and learnt that Mr President himself has recently granted Ross a pardon and he is a freeman again. (I'm British so I might be behind the times with regards to US happenings!)

 

There's a few points I want to make:

 

1) I think there is an interesting link to business and psychology - Ross was clearly highly intelligent. But I find it fascinating how one dogmatic belief 'Everyone has the right to do what they want with their bodies and I am merely facilitating it by allowing free choice' would override everything. The devastating impact of drugs like heroin (both personal and societal) would brazenly be ignored by Ross, because his belief system was so black and white and all-encompassing. He knew better. I couldn't help think of Charlie Munger when I read this and how clever people can have huge gaps in their way of thinking. It incredible to me how someone who had a degree in physics and built a $1.2billion dollar empire would make arguments like 'Alcohol kills more people annually than heroin, why don't we make that illegal?' and that nonsense would be the depth of his thought on such matters before ironically imposing his libertarian views on society.

 

2) Lack of integrity - We live in a world where Donald Trump is imposing sanctions on countries citing reasons like not doing enough to stop fentanyl entering US. He also seems proactive in deporting people involved in drugs. Then, simultaneously he pardons the one man who arguably did the most for illegal drug trafficking into the US in history! It made me a bit angry. Not that Ross is free as such, (people might have their own views on if he has served his time or the severity of his crimes) but just the lack of morality. In my view it shows how Trump is completely transactional. His view on anything lacks any consistency and is formed on 'How can I benefit from this?' rather than any morals. Furthermore, I watched a video of Ross thanking Mr Trump on his decision. Ross Ulbricht, the libertarian who believes in lack of government intervention, thanks US president for intervening.  

 

3) Madness of crowds - Finally, it seems to me, albeit anecdotally, there is huge sympathy for Ross. He wasn't actually dealing drugs himself after all. (Just taking commissions and profiteering on drug sales is evidently different...) Maybe I am the idiot? Maybe I am narrow minded? But, again I think there's an investing lesson here on group think and human psychology. I wonder if people would have the same sympathy if this was a black kid from a underprivileged area who was facilitating sales of firearms? I doubt it. 

 

Anyway, I enjoyed the story. Thought it had some relevant lessons. Would love to hear people's thoughts...