Quick Summary:
...- Type A decision making focuses on the few key factors.
- Type B decision making understands that the fat tail of factors might become crucial someday.
- Ignoring the fat tails mean failing to understand that these factors could come and bite us someday. Recognizing the fat tail is the key to Type B decision making.
- In investing, this means looking holistically at the business and asking questions all round.
- In real-world decision making, it also means constant reviewing of past decisions.
- One should continuously assess the situation and challenge the assumptions.
In the previous post, we established that there are, by and large, two personality types.
Type A: Digital, task-oriented, focused on getting things done. Excellent operators and organizers.
Type B: Analogue, multi-dimensional approach, focused on innovating to a better solution. Creative problem solvers and strategic thinkers.
In decision makings, these two Types exhibit different traits and (Read more...)
