What Are Your Decision-Making Strengths?

Question

• “Perhaps we think of others’ failures as the blunders of unintelligent or incapable individuals because we want to convince ourselves that we can succeed at a similar endeavor despite the obvious risks. In most cases, differences in intellectual capability simply do not help us differentiate success from failure when it comes to complex, high-stakes decisions.” Michael A. Roberto

I read that and wondered how ya'll make decisions. What strengths, skills, and attributes do you rely on within yourself? What have you learned is not reliable?

This gets at the heart of investor psychology I believe.

Tom Shallcross · Answer

@Jason Merchey - similar to @Dean Letfus's comments it's all about discipline.  Everyday mundane discipline that adds up over time eventually making it easy to make complex decisions (I'm not there yet, but working on it everyday).

One theme in the book Extreme Ownership (great book!) is don't let the immediate situation dictate your decision.  Your intentions and long-term goals are much more important than the convenience, the "act now", the whatever urgent driving factor.  Step out of the moment and elongate the time horizon.  In the same book, Jocko Willink talks about the necessity during war to "relax, look around, and simply make a call."  If it's still a good purchase that aligns with these long-term goals, then internally shift gears and do everything possible to make the deal happen.

Dean Letfus · Answer

1.  Having rules and bending them, don't do it.

2.  Being an eager buyer. Always be reluctant and happy to walk.

Jason Merchey · Answer

I like that, thanks Tom.