Imagine you’ve made two decisions. One has resulted in a loss of 10 thousand dollars, while the other resulted in a gain of 10 thousand dollars. Would you say that the former was a bad decision, and the latter was a good one?
The first response that usually comes to everyone’s mind is “of course, the second decision was better”. But this is not necessarily the case. Can you think of a scenario where your response would be the opposite?
I’ve been thinking and reading about decision-making for many years while trying to put everything I learned into practice. Below, I summarize the strategies and mental models that I personally found most useful.
The Process vs. The Outcome
We all have a natural tendency to judge decisions based on their outcomes. This is not the worst heuristic, as there is a correlation between the quality of decisions and outcomes. But this heuristic has a major flaw — it doesn’t account for luck and incomplete information.
I just wanted to share some excerpts from Waking Up by Sam Harris that I listened to a couple of months ago. It is a great book that covers so many topics: mindfulness, meditation, neuroscience, cognition, emotions and others. It is worth reading in its entirety and I am personally planning to re-read it. So here are some notes:
“Our conventional sense of self is an illusion; positive emotions, such as compassion and patience, are teachable skills; and the way we think directly influences our experience of the world.”
“There is now little question that how one uses one’s attention, moment to moment, largely determines what kind of person one becomes. Our minds—and lives—are largely shaped by how we use them.”
“My mind begins to seem like a video game: I can either play it intelligently, learning more in each round, or I can be killed in the same spot by the same monster, again and again.”
“How we pay attention to the present moment largely determines the character of our experience and, therefore, the quality of our lives. Mystics and contemplatives have made this claim for ages—but a growing body of scientific research now bears it out.”