Learning from Data Lessons from the Coronavirus Pandemic The Coronavirus pandemic has generated a level of media attention to data rarely seen. Data is pouring in from all parts of the World and various models are using that data to report likely outcomes in terms of cases, hospitalizations, and deaths. Government officials [...]
"I Don't Know" There are 3 answers to every question: the right one, the wrong one, and “I don’t know.” Most of us need to answer “I don’t know” more often. In business decision-making the reality is that we rarely know the right answer with certainty. Usually the right move is to go with [...]
Kaizen “Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Slug it out one inch at a time, day by day. At the end of the day—if you live long enough—most people get what they deserve.” -Charlie Munger Kaizen is the [...]
Via Negativa Via negativa is gaining through subtraction. Less is more is another way this is expressed. Charlie Munger attributes much of Berkshire Hathaway’s success to avoiding doing stupid things rather than trying to be brilliant. Eliminate bad habits. Cease doing useless things. The bad is often much more obvious than the good…identify it [...]
Crowdsourcing - Wisdom or Madness? According to Nietzsche “Madness is rare in individuals, but in groups, parties, and nations it is the rule.” James Surowiecki’s book “The Wisdom of Crowds” has popularized the opposite concept. Free market capitalism (Adams Smith’s “invisible hand”) and democracy are often used as examples of the wisdom of crowds [...]
Cognitive Dissonance Cognitive dissonance can be seen at least as far back as Aesop’s fables. It occurs when our actions conflict with our beliefs, causing dissonance that we then seek to resolve. The resolution of the dissonance must come about by changing beliefs, changing actions, or changing our perception of our actions. Changing our perception [...]
Decentralize “How is [Berkshire] organized? I don’t think in [the] history of the world has anything Berkshire’s size [been] organized in so decentralized a fashion.” -Charlie Munger Berkshire Hathaway had revenue of $242 billion in 2017. Their headquarters staff is about 25 people. Take a look at your organization. Are you too centralized?
Success is the result of skill, will, and luck. Don’t get frustrated by bad luck. Develop your skills, be determined, and maximize your opportunities. I guarantee you that more opportunities will result in more good luck.