There are four kinds of luck.
The simplest form is extrinsic, something fortunate happens to youβwe tend to call that blind luck.
Then there is luck that happens by increasing the number of chances to be luckyβwe often see that in people who output an enormous amount and are in constant motion.
The next is luck from being skilled in a particular area and spotting lucky breaks that others don’t noticeβthis is prepared luck.
Lastly, there is luck that is drawn to you from being in a position where other’s luck becomes your luckβthis is due to your unique characteristics, second-order luck. This is the hardest to understand, but consider the example of a deep sea diver who is the best in the world. When a sunken ship filled with treasure is discovered deep underwater, this opportunity will go to them because they are known to be the best.
See also:
- Naval Ravikant who originated this distinction in types of luck
- Lecture - You and Your Research provides a good example of prepared luck.
- Charlie Munger and Warren Buffet are both examples of luck due to unique characteristics (deals come to them, often favorably)