Investments Risk Quotes

There is no safe investment. To love at all is to be vulnerable. Love anything, and your heart will certainly be wrung and possibly be broken. If you want to make sure of keeping it intact, you must give your heart to no one, not even to an animal. Wrap it carefully round with hobbies and little luxuries; avoid all entanglements; lock it up safe in the casket or coffin of your selfishness. But in that casket – safe, dark, motionless, airless – it will change. It will not be broken; it will become unbreakable, impenetrable, irredeemable. The alternative to tragedy, or at least to the risk of tragedy, is damnation. The only place outside Heaven where you can be perfectly safe from all the dangers and perturbations of love is Hell.

Loving someone can be hard at times. You risk a lot when you love - your heart and soul, at the least. Love is the most important and most rewarding investment you can make in another person.

Hear this, Rosie. You are worth every penny. Every fortune. Every investment. Every risk. You are priceless to me.

A good investor is prudent but not risk averse.

The utilization of productive assets is what investing is about.

There’s a big difference between probability and outcome. Probable things fail to happen—and improbable things happen—all the time.” That’s one of the most important things you can know about investment risk.

You only get hurt that badly when you're doing something that matters.Something impossible.Taking a risk.Investing yourself.And ball's worth it,the rush you get, the exhilaration...

The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.4 —Warren Buffett

what you learn from the intensity and the focus you had when under the influence of risk stays with you. You may lose the sharpness, but nobody can take away what you’ve learned. This is the principal reason I am now fighting the conventional educational system, made by dweebs for dweebs. Many kids would learn to love mathematics if they had some investment in it, and, more crucially, they would build an instinct to spot its misapplications.

Always choose to be smart There are two types of people in the world, the seekers of riches and the wise thinkers, those who believe that the important thing is money, and those who know that knowledge is the true treasure. I, for my part, choose the second option, Though I could have everything I want I prefer to be an intelligent person, and never live in a game of vain appearances. Knowledge can take you far far beyond what you imagine, It can open doors and opportunities for you. and make you see the world with different eyes. But in this eagerness to be "wise", There is a task that is a great challenge. It is facing the fear of the unknown, and see the horrors around every corner. It's easy to be brave when you're sure, away from dangers and imminent risks, but when death threatens you close, "wisdom" is not enough to protect you. Because, even if you are smart and cunning, death sometimes comes without mercy, lurking in the darkest shadows, and there is no way to escape. That is why the Greek philosophers, They told us about the moment I died, an idea we should still take, to understand that death is a reality. Wealth can't save you of the inevitable arrival of the end, and just as a hoarder loses his treasures, we also lose what we have gained. So, if we have to choose between two things, that is between being cunning or rich, Always choose the second option because while the money disappears, wisdom helps us face dangers. Do not fear death, my friend, but embrace your intelligence, learn all you can in this life, and maybe you can beat time and death for that simple reason always choose to be smart. Maybe death is inevitable But that doesn't mean you should be afraid because intelligence and knowledge They will help you face any situation and know what to do. No matter what fate has in store, wisdom will always be your best ally, to live a life full of satisfaction, and bravely face any situation. So don't settle for what you have and always look for ways to learn more, because in the end, true wealth It is not in material goods, but in knowledge. Always choose to be smart, Well, that will be the best investment. that will lead you on the right path, and it will make you a better version of yourself.

Risk parity is already inherent in the permaculture investing approach. Nature already figured out risk parity through millions of years of Research & Development. In learning from nature, we also learn to employ natures risk parity as part of our approach.

Anyaele Sam Chiyson Leadership Law of Reproduction: Distinguished leaders impress, inspire and invest in other leaders.

At Mayflower-Plymouth, we have a unique approach to minimizing risk in our portfolios. We approach risk holistically.

If you’re not filing patents, but your competitors are, all you have is risk. You’re taking a huge chance that no one else will enter your space and kick you out. That’s the benefit of patents; you don’t have to let everybody in. You can let just a few major players in because you want what they have, or you don’t want to worry about them. Remember, you’re not at the big boys’ lunch table. But if you partner with their competitor, they’ll be worried. Then they’ll want to see if your patent protection is strong or if they can exploit a weakness.

We think conscious thought is somehow better, when in fact, intuition is soaring flight compared to the plodding of logic. Nature’s greatest accomplishment, the human brain, is never more efficient or invested than when its host is at risk. Then, intuition is catapulted to another level entirely, a height at which it can accurately be called graceful, even miraculous. Intuition is the journey from A to Z without stopping at any other letter along the way. It is knowing without knowing why.

Changes in interest rates can have significant impacts on debt securities risk.

Putting the principal at risk for the hope of an extravagant return — that’s not wise investing, that’s gambling.

most great things in life—from love to careers to investing—gain their value from two things: patience and scarcity. Patience to let something grow, and scarcity to admire what it grows into.

So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety. The upside, while still difficult to quantify, will usually take care of itself. In other words, look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.

And of course Brian was far more upset about separation from those two blond moppets than about leaving Louise. There shouldn't be any problem loving both, but for some reason certain men choose; like good mutual-fund managers minimizing risk while maximizing portfolio yield, they take everything they once invested in their wives and sink it into their children instead. What is it? Do they seem safer, because they need you? Because you can never become their ex-father, as I think I might become your ex-wife?

When people invest with Mayflower-Plymouth they are contributing to and benefiting from a multiplicative value effect. They’re getting financial ROI, they’re getting social ROI, they’re getting minimized risk. But they’re also getting the assurance that they’re capital is at work doing good in the marketplace.

The trick when dealing with failure is arranging your financial life in a way that a bad investment here and a missed financial goal there won’t wipe you out so you can keep playing until the odds fall in your favor. But more important is that as much as we recognize the role of luck in success, the role of risk means we should forgive ourselves and leave room for understanding when judging failures.

I’ll reiterate—knowing and not doing is the same as not knowing. You need to make the mistakes, risk looking foolish and invest in yourself and your business.

The wisdom of taking risks early applies to most aspects of life, whether it be career choices, investments, or dating.

Even the richest person, provided the riches comes from mutually beneficial exchange, does not need to give anything "back" to the community, because this person took nothing out of the community. Indeed, the reverse is true: Enterprises give to the community. Their owners take huge risks, and front the money for investment, precisely with the goal of serving others. Their riches are signs that they have achieved their aims.

If a firm can spot an industry in which the fragmented structure does not reflect the underlying economics of competition, this can provide a most significant strategic opportunity. A company can enter such an industry cheaply because of its initial structure. Since there are no underlying economic causes of fragmentation, none of the investment costs or risks of innovations to change underlying economic structure need be borne.

Do you want a revolution in science? Do what businesspeople do when they want a technological revolution: Just change the rules a bit. Let in a few revolutionaries. Make the hierarchy a bit flatter, to give the young people more scope and freedom. Create some opportunities for high-risk/high-payoff people, so as to balance the huge investment you made in low-risk, incremental science. The technology companies and investment banks use this strategy. Why not try it in academia? The payoff could be discovering how the universe works.

He gave a talk in which he argued that the way they measured risk was completely idiotic. They measured risk by volatility: how much a stock or bond happened to have jumped around in the past few years. Real risk was not volatility; real risk was stupid investment decisions.

I never advise friends to put money in anything,. said Danny. 'It's a no-win situation - if they make a profit they forget that it was you who recommended it, and if they make a loss they never stop reminding you. My only advise would be not to gamble what you can't afford, and never to risk an amount that might cause you to lose a night's sleep

The extent to which beliefs are based upon evidence is very much less than believers suppose. Take the kind of action which is most nearly rational: the investment of money by a rich City man. You will often find that his view (say) on the question whether the French franc will go up or down depends upon his political sympathies, and yet is so strongly held that he is prepared to risk money on it.

Since the 1970S, financial innova­tions such as the securitisation of mortgage debt and the spreading of investment risks through the creation of derivative markets, all tacitly (and now, as we see, actually) backed by state power, have permitted a huge flow of excess liquidity into all facets of urbanisa­tion and built environment construction worldwide.

Keeping your options open” is frequently more of a risk than committing to a plan of action.

Remember: If you don’t find risk, risk will find you.

Diversification should be an offensive contributor to growth, not just a defensive hedge against loss.

Leverage is a two-edged sword. The edge that can cut you, cuts deeper.

Municipal Bond investment risk is substantially influenced by socio-politics.

A stock screening feature is then used to find the leading stocks within the leading sectors.

A man who has committed a mistake and doesn’t correct it is committing another mistake.

Nature doesn’t have puts on one side and calls on the other side of the same things, nor does it waste energy betting against the same life it works to cultivate. Nature doesn’t insure high risk gambles by trying to be both the casino and the player. Instead, nature insures capital and profits through a variety of complimentary approaches. At Mayflower-Plymouth we aim to emulate nature in this way with how we approach investing and asset management.

Don’t always believe the advice of financial adviser / intermediary consultant because they might have misguided you to sale their product. You chose your product according to your needs.

We are not paying taxes, we are investing in our society. We are purchasing quality of life. The key to understanding the high levels of well-being in Denmark is the welfare model’s ability to reduce risk, uncertainty, and anxiety among its citizens and to prevent extreme unhappiness.

Every one of the big breakthroughs in the art of literature have possibly started as what many would call a ludicrous or even laughable idea as the writer occasionally balances a routine piece with an investment in the eccentric and untried. Over time, the reward is usually worth the risk.

Two-thirds of professionally managed funds are regularly outperformed by a broad capitalization-weighted index fund with equivalent risk, and those that do appear to produce excess returns in one period are not likely to do so in the next. The record of professionals does not suggest that sufficient predictability exists in the stock market to produce exploitable arbitrage opportunities.

Some people will each start investing more of their salary on ‘their’ house and spending less of it on ‘their’ car or cars only when they start being able to take ‘their’ house to work, funerals, weddings, etc.

In modern portfolio theory, beta is used as a measure of the volatility and, thus, the risk of an investment. However, Buffett sees the use of beta as nonsense, emphatically stating, “Volatility is no measure of risk to us.

No muscles without strength, friendship without trust, opinion without consequence, change without aesthetics, age without values, life without effort, water without thirst, food without nourishment, love without sacrifice, power without fairness, facts without rigor, statistics without logic, mathematics without proof, teaching without experience, politeness without warmth, values without embodiment, degrees without erudition, militarism without fortitude, progress without civilization, friendship without investment, virtue without risk, probability without ergodicity, wealth without exposure, complication without depth, fluency without content, decision without asymmetry, science without skepticism, religion without tolerance, and, most of all: nothing without skin in the game.

Outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook. More than that, some speculation is necessary and unavoidable, for in many common-stock situations there are substantial possibilities of both profit and loss, and the risks therein must be assumed by someone.* There is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are: (1) speculating when you think you are investing; (2) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and (3) risking more money in speculation than you can afford to lose.

In one guise or another, Indians always are. Again, it is a question of recognizing that anything worth having has its price. People who respect themselves are willing to accept the risk that the Indians will be hostile, that the venture will go bankrupt, that the liaison may not turn out to be one in which every day is a holiday because you’re married to me. They are willing to invest something of themselves; they may not play at all, but when they do play, they know the odds.

One of the most infuriating elements of American myopia about investing in at-risk kids is that politicians often insist that they don't have the funds to pay for social services--but they somehow find the resources to pay for prisons later on.

There is no logical, rational, pre-structured criterion "out there" with a divine plan. There is no truth "out there" which our weak minds or souls eventually run across. There is this casual, haphazard, amoral process that leaps the logical gaps and brings about newness. And the procedurés only demand is that given talents be invested, risked, doubled, the possibilities explored.

The alchemy that the ratings agencies performed was to spin uncertainty into what looked and felt like risk. They took highly novel securities, subject to an enormous amount of systemic uncertainty, and claimed the ability to quantify just how risky they were. Not only that, but of all possible conclusions, they came to the astounding one that these investments were almost risk-free.

The 5 Clues to Spotting the Next Starbucks They permanently change people's habits. They're copycats. Their success is validated by the competition. They are driven by the founder's vision and passion. They have superb entrepreneurial management and execution.

Risk is the ultimate differentiator. I have always had a deep and complex relationship with it. I am not a reckless person, but taking risks is really the only way to consistently achieve above-average returns—in life as well as in investments. My father proved that when he left Poland. I am probably more comfortable with risk than most people. That’s because I do as much as I can to understand it. To me, risk-taking rests on the ability to see all the variables and then identify the ones that will make or break you.

Everyone knows about market risk and management risk. But there are a variety of non obvious risks to consider when managing a portfolio of investments. They include political risk, share premiums and discounts risk, Interest Rate risk, Income Risk, Tax law changes risk, valuation risk, and liquidity risk, among others. This is why professional active portfolio management is the way to go.

The Three Considerations You’ll want to consider: In what stage of your investing life are you? The Wealth Accumulation Stage or the Wealth Preservation Stage? Or perhaps a blend of the two? What level of risk do you find acceptable? Is your investment horizon long-term or short-term?

Every one of the big breakthroughs in the art of literature have possibly started as what many would call a ludicrous or even laughable idea as the writer occasionally balances a routine piece with an investment in the eccentric and untried. Over time, the reward is usually worth the risk

Companies should exercise financial due diligence before entering into deals to minimize financial risks and ensure informed decision-making. This process helps identify potential issues, verify financial claims, and assess the overall financial health of the target company, safeguarding the investing company's resources and reputation.

I was convinced that I was totally incompetent in predicting market prices - but that others were generally incompetent also but did not know it, or did not know they were taking massive risks. Most traders were just "picking pennies in front of a steamroller," exposing themselves to the high-impact rare event yet sleeping like babies, unaware of it.

One of the most bizarre and intriguing findings is that people with brain damage may be particularly good investors. Why? Because damage to certain parts of the brain can impair the emotional responses that cause the rest of us to do foolish things. A team of researchers from Carnegie Mellon, Stanford, and the University of Iowa conducted an experiment that compared the investment decisions made by fifteen patients with damage to the areas of the brain that control emotions (but with intact logic and cognitive functions) to the investment decisions made by a control group. The brain-damaged investors finished the game with 13 percent more money than the control group, largely, the authors believe, because they do not experience fear and anxiety. The impaired investors took more risks when there were high potential payoffs and got less emotional when they made losses.7 This

risk parity” investing.

In a world where every choice is an investment, growing up becomes a very complex exercise in risk management.

The mistake too many people make, it seems, is either not having the plan in the first place or once they do, treating it as immutable law.

Companies should assess and mitigate financial risks because doing so safeguards their financial stability, protects investments, and ensures they are better prepared to weather economic uncertainties. By identifying and managing potential risks, businesses can reduce the likelihood of adverse financial events and maintain a strong, sustainable financial position.

Exits are the best part of being an entrepreneur or investor. It’s when we get financially rewarded for all of the creativity, hard work, investment and risk we put into our companies.

The fact that your brain becomes more risk seeking in bull markets and more conservative in bear markets means that you are neurologically predisposed to violate the first rule of investing, “buy low and sell high.” Our flawed brain leads us to subjectively experience low levels of risk when risk is actually quite high, a concept that Howard Marks refers to as the “perversity of risk.

Since dad is most at risk of being both bad-mouthed and less involved, lets look at three reasons bad-mouthing sin is in conflict with your child's best interest: 1. Your children grow up feeling, "I hate who I am." 2. Your children fear that "loving dad is betraying mom." 3. Bad-mouthing undermines dad's motivation to invest money and time in the bank of love and to become responible in response to the hope for love.

The scarcity mindset in dating often goes hand in hand with the sunk cost fallacy. The sunk cost fallacy says that it is bad to lose something we have invested time, money, energy or emotions into, regardless of whether that something is still actually doing anything for you. Humans are highly risk averse creatures, so we tend to prefer NOT losing something over potentially gaining something, even if we don't like what we would lose.

Now, it has been independently shown that people hate to lose something more than they enjoy gaining it. For example, they don't mind paying for something with a credit card even when told there is a discount for cash, but they hate paying the same amount if they are told there is a surcharge for using credit. As a result, people will often refuse to gamble for an expected profit (they turn down bets such as "Heads, you win $120; tails, you pay $100), but they will gamble to avoid an expected loss (such as "Heads, you no longer owe $120; tails, you now owe an additional $100"). (This kind of behavior drives economists crazy, but is avidly studied by investment firms hoping to turn it to their advantage.) The combination of people's loss aversion with the effects of framing explains the paradoxical result: the "gain" metaphor made the doctors risk-averse; the "loss" metaphor made them gamblers.

As Christ-followers, we are called to be long-haul neighbors committed to authenticity and willing to take some risks. Our vocation is to invest deeply in the lives of those around us, devoted to one another, physically close to each other as we breathe the same air and walk the same blocks. Our purpose is not so mysterious after all. We get to love and be deeply loved right where we’re planted, by whomever happens to be near. We will inevitably encounter brokenness we cannot fix, solve, or understand, and we’ll feel as small, uncertain, and outpaced as we have ever felt. But we’ll find our very lives in this calling, to be among people as Jesus was, and it will change everything.

Almost every American would sooner get 8 per cent from a risks investment than 4 per cent from a safe one. The consequence is that there are frequent losses of money and continual worry and fret. For my part, the thing that I would wish to obtain from money would be leisure with security. But what the typical modern man desires to get with it is more money, with a view to ostentation, splendour, and the outshining of those who have hitherto been his equals.

We can apply these five questions to our own attempts at building buffers. Think of the most important project you are trying to get done at work or at home. Then ask the following five questions: (1) What risks do you face on this project? (2) What is the worst-case scenario? (3) What would the social effects of this be? (4) What would the financial impact of this be? and (5) How can you invest to reduce risks or strengthen financial or social resilience? Your

The problem with fiat is that simply maintaining the wealth you already own requires significant active management and expert decision-making. You need to develop expertise in portfolio allocation, risk management, stock and bond valuation, real estate markets, credit markets, global macro trends, national and international monetary policy, commodity markets, geopolitics, and many other arcane and highly specialized fields in order to make informed investment decisions that allow you to maintain the wealth you already earned. You effectively need to earn your money twice with fiat, once when you work for it, and once when you invest it to beat inflation. The simple gold coin saved you from all of this before fiat.

We cannot rely on trial-and-error approaches to deal with existential risks… We need to vastly increase our investment in developing specific defensive technologies… We are at the critical stage today for biotechnology, and we will reach the stage where we need to directly implement defensive technologies for nanotechnology during the late teen years of this century… A self-replicating pathogen, whether biological or nanotechnology based, could destroy our civilization in a matter of days or weeks.

Einstein said, “ Imagination is more important than knowledge,” but you’d be hard-pressed to find schools or corporations that invest in people with those priorities. The systems of education and professional life, similar by design, push the idea-finding habits of fun and play to the corners of our minds, training us out of our creativity.[117] We reward conformance of mind, not independent thought, in our systems — from school to college to the workplace to the home — yet we wonder why so few are willing to take creative risks.

After the New Deal, economists began referring to America’s retirement-finance model as a “three-legged stool.” This sturdy tripod was composed of Social Security, private pensions, and combined investments and savings. In recent years, of course, two of those legs have been kicked out. Many Americans saw their assets destroyed by the Great Recession; even before the economic collapse, many had been saving less and less. And since the 1980s, employers have been replacing defined-benefit pensions that are funded by employers and guarantee a monthly sum in perpetuity with 401(k) plans, which often rely on employee contributions and can run dry before death. Marketed as instruments of financial liberation that would allow workers to make their own investment choices, 401(k)s were part of a larger cultural drift in America away from shared responsibilities toward a more precarious individualism. Translation: 401(k)s are vastly cheaper for companies than pension plans. “Over the last generation, we have witnessed a massive transfer of economic risk from broad structures of insurance, including those sponsored by the corporate sector as well as by government, onto the fragile balance sheets of American families,” Yale political scientist Jacob S. Hacker writes in his book The Great Risk Shift. The overarching message: “You are on your own.

A woman's sexual desire must be filtered through a careful appraisal of potential risks. During human prehistory, women who blindly gave in to every sexual urge likely faced a host of daunting challenges, including - in the extreme cases - death. Most important, from an evolutionary point of view, her children would have a harder time surviving than the children of a woman who limited the expression of her sexual urges to a strong and decent man willing to invest in a stable, long-term, child-rearing relationship. All modern women are the fruit of feminine caution. The result of this whittling away of the impulsive branches of our ancestral maternal tree is a female brain equipped with the most sophisticated neural software on Earth. A system designed to uncover, scrutinize, and evaluate a dazzling range of informative clues.

1. Project What is the project? Why is it unique? Why is the business needed? Why will customers love your product? 2. Partners Who are you? Who are the partners? What are your educational backgrounds? How much experience do you all have? How are you and your partners qualified to make the project a success? 3. Financing What is the total cost of the project? How much debt and how much equity is there? Are partners investing their own money? What is the investor’s return and reward for their risk? What are the tax consequences? Who is your CFO or accounting firm? Who is responsible for investor communications? What is the investor’s exit? 4. Management Who is running your company? What is their experience? What is their track record? Have they ever failed? How does their experience relate to your industry? Do you believe this is the strongest management team you can assemble? Can you pitch them with confidence?

Men are hard-wired for risk taking—particularly young men. The number one killer of fifteen- to twenty-four-year-old males is accidents.6 Female investors hold less risky investment portfolios than their male counterparts and generally take fewer chances with their money. Churches need men because men are natural risk takers—and they bring that orientation into the church. Congregations that do not take risks atrophy. Jesus made it clear that risk taking is necessary to please God. In the parable of the talents, the master praises two servants who risked their assets and produced more, but he curses the servant who played it safe. He who avoids all risk is, in the words of Jesus, “wicked and lazy".

The harder farmers push animals beyond their natural limit, and the more closely animals are confined, often the greater the risk of disease and the heavier the reliance on vets to keep herds alive. Their weapon of choice is antibiotics. According to Dil Peeling, who qualified as a vet in the UK but spent much of his career working in developing countries:   A vet’s worth is now measured by his or her ability to deliver on production and animal health – not welfare. It is difficult to persuade vets who have invested so much of their careers in propping up intensive farming to turn their back on such systems. You’re asking the high priests of the livestock ministry to reject everything they know. As far as they’re concerned, this is how things have always been done.   Now

What went wrong was their rejection of basic bedrock principles of investing—that high returns are leg-shackled to high risks; that you should never put all your eggs in one basket; that you should never invest in something you cannot understand. They failed to see that no one should hand all their money over to anyone simply because they trust him, or because someone they admire trusts him.

Americans tend to see themselves in control of their fate, while Chinese see fate as something external,” Lam, the professor, said. “To alter fate, the Chinese feel they need to do things to acquire more luck.” In surveys, Chinese casino gamblers tend to view bets as investments and investments as bets. The stock market and real estate, in the Chinese view, are scarcely different from a casino. The behavioral scientists Elke Weber and Christopher Hsee have compared Chinese and American approaches to financial risk. In a series of experiments, they found that Chinese investors overwhelmingly described themselves as more cautious than Americans. But when they were tested—with a series of hypothetical financial decisions—the stereotype proved wrong, and the Chinese were found to take consistently larger risks than Americans of comparable wealth.

A self that is only differentiated—not integrated—may attain great individual accomplishments, but risks being mired in self-centered egotism. By the same token, a person whose self is based exclusively on integration will be connected and secure, but lack autonomous individuality. Only when a person invests equal amounts of psychic energy in these two processes and avoids both selfishness and conformity is the self likely to reflect complexity.

The hell of it is that my son, my only child, has to turn out to be,” he added with a return of his old spirit, black eyes flashing, “the one man in Washington, D.C. who hates my guts!” “You weren’t too fond of him, either, if you recall,” she pointed out. He glared at her. “He’s hot-tempered and arrogant and stubborn!” “Look who he gets it from,” she said with a grin. He unlinked his hands as he considered that. “Those can be desirable traits,” he agreed with a faint smile. “Anyway, it’s nice to know I won’t die childless,” he said after a minute. He lifted his eyes to her face. “Leta can’t know any of this. When and if the time comes, I’ll tell her.” “Who’s going to tell him?” she ventured. “You?” he suggested. “In your dreams,” she said with a sweet smile. He stuffed his hands back into his pockets. “We’ll cross that bridge when the river comes over it. You’ll be careful, do you hear me? I’ve invested a lot of time and energy into hijacking you for my museum. Don’t take the slightest risk. If you think you’ve been discovered, get out and take Leta with you.” “She’s afraid to fly,” she pointed out. “She won’t get in an airplane unless it’s an emergency.” “Then I’ll come out and stuff her into a car and drive her to the airport and put her on a plane,” he said firmly. She pursed her lips. He was very like Tate. “I guess you would, at that.

1. Recruit the smallest group of people who can accomplish what must be done quickly and with high quality. Comparative Advantage means that some people will be better than others at accomplishing certain tasks, so it pays to invest time and resources in recruiting the best team for the job. Don’t make that team too large, however—Communication Overhead makes each additional team member beyond a core of three to eight people a drag on performance. Small, elite teams are best. 2. Clearly communicate the desired End Result, who is responsible for what, and the current status. Everyone on the team must know the Commander’s Intent of the project, the Reason Why it’s important, and must clearly know the specific parts of the project they’re individually responsible for completing—otherwise, you’re risking Bystander Apathy. 3. Treat people with respect. Consistently using the Golden Trifecta—appreciation, courtesy, and respect—is the best way to make the individuals on your team feel Important and is also the best way to ensure that they respect you as a leader and manager. The more your team works together under mutually supportive conditions, the more Clanning will naturally occur, and the more cohesive the team will become. 4. Create an Environment where everyone can be as productive as possible, then let people do their work. The best working Environment takes full advantage of Guiding Structure—provide the best equipment and tools possible and ensure that the Environment reinforces the work the team is doing. To avoid having energy sapped by the Cognitive Switching Penalty, shield your team from as many distractions as possible, which includes nonessential bureaucracy and meetings. 5. Refrain from having unrealistic expectations regarding certainty and prediction. Create an aggressive plan to complete the project, but be aware in advance that Uncertainty and the Planning Fallacy mean your initial plan will almost certainly be incomplete or inaccurate in a few important respects. Update your plan as you go along, using what you learn along the way, and continually reapply Parkinson’s Law to find the shortest feasible path to completion that works, given the necessary Trade-offs required by the work. 6. Measure to see if what you’re doing is working—if not, try another approach. One of the primary fallacies of effective Management is that it makes learning unnecessary. This mind-set assumes your initial plan should be 100 percent perfect and followed to the letter. The exact opposite is true: effective Management means planning for learning, which requires constant adjustments along the way. Constantly Measure your performance across a small set of Key Performance Indicators (discussed later)—if what you’re doing doesn’t appear to be working, Experiment with another approach.

The complexity and freedom that have been thrust upon us, and that our ancestors had fought so hard to achieve, are a challenge we must find ways to master. If we do, the lives of our descendants will be infinitely more enriched than anything previously experienced on this planet. If we do not, we run the risk of frittering away our energies on contradictory, meaningless goals. But in the meantime how do we know where to invest psychic energy? There is no one out there to tell us, “Here is a goal worth spending your life on.” Because there is no absolute certainty to which to turn, each person must discover ultimate purpose on his or her own. Through trial and error, through intense cultivation, we can straighten out the tangled skein of conflicting goals, and choose the one that will give purpose to action. Self-knowledge—an ancient remedy so old that its value is easily forgotten—is the process through which one may organize conflicting options. “Know thyself” was carved over the entrance to the Delphic oracle, and ever since untold pious epigrams have extolled its virtue. The reason the advice is so often repeated is that it works. We need, however, to rediscover afresh every generation what these words mean, what the advice actually implies for each individual. And to do that it is useful to express it in terms of current knowledge, and envision a contemporary method for its application.

Common phrases narcissists use and what they actually mean: 1. I love you. Translation: I love owning you. I love controlling you. I love using you. It feels so good to love-bomb you, to sweet-talk you, to pull you in and to discard you whenever I please. When I flatter you, I can have anything I want. You trust me. You open up so easily, even after you’ve already been mistreated. Once you’re hooked and invested, I’ll pull the rug beneath your feet just to watch you fall. 2. I am sorry you feel that way. Translation: Sorry, not sorry. Let’s get this argument over with already so I can continue my abusive behavior in peace. I am not sorry that I did what I did, I am sorry I got caught. I am sorry you’re calling me out. I am sorry that I am being held accountable. I am sorry you have the emotions that you do. To me, they’re not valid because I am entitled to have everything I want – regardless of how you feel about it. 3. You’re oversensitive/overreacting. Translation: You’re having a perfectly normal reaction to an immense amount of bullshit, but all I see is that you’re catching on. Let me gaslight you some more so you second-guess yourself. Emotionally invalidating you is the key to keeping you compliant. So long as you don’t trust yourself, you’ll work that much harder to rationalize, minimize and deny my abuse. 4. You’re crazy. Translation: I am a master of creating chaos to provoke you. I love it when you react. That way, I can point the finger and say you’re the crazy one. After all, no one would listen to what you say about me if they thought you were just bitter or unstable. 5. No one would believe you. Translation: I’ve isolated you to the point where you feel you have no support. I’ve smeared your name to others ahead of time so people already suspect the lies I’ve told about you. There are still others who might believe you, though, and I can’t risk being caught. Making you feel alienated and alone is the best way for me to protect my image. It’s the best way to convince you to remain silent and never speak the truth about who I really am.

A prison is perhaps the easiest place to see the power of bad incentives. And yet in many walks of life, we find otherwise normal men and women caught in the same trap and busily making the world much less good than it could be. Elected officials ignore long-term problems because they must pander to the short-term interests of voters. People working for insurance companies rely on technicalities to deny desperately ill patients the care they need. CEOs and investment bankers run extraordinary risks—both for their businesses and for the economy as a whole—because they reap the rewards of success without suffering the penalties of failure. District attorneys continue to prosecute people they know to be innocent because their careers depend on winning cases. Our government fights a war on drugs that creates the very problem of black-market profits and violence that it pretends to solve. We need systems that are wiser than we are. We need institutions and cultural norms that make us more honest and ethical than we tend to be. The project of building them is distinct from—and, in my view, even more important than—an individual’s refining his personal ethical code.

The strategy we’ve adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it. In stating this opinion, we define risk, using dictionary terms, as “the possibility of loss or injury.” —Warren Buffett, 19931

Groups have powerful self-reinforcing mechanisms at work. These can lead to group polarization—a tendency for members of the group to end up in a more extreme position than they started in because they have heard the views repeated frequently. At the extreme limit of group behavior is groupthink. This occurs when a group makes faulty decisions because group pressures lead to a deterioration of “mental efficiency, reality testing, and moral judgment.” The original work was conducted with reference to the Vietnam War and the Bay of Pigs fiasco. However, it rears its head again and again, whether it is in connection with the Challenger space shuttle disaster or the CIA intelligence failure over the WMD of Saddam Hussein. Groupthink tends to have eight symptoms: 1 . An illusion of invulnerability. This creates excessive optimism that encourages taking extreme risks. [...] 2. Collective rationalization. Members of the group discount warnings and do not reconsider their assumptions. [...] 3. Belief in inherent morality. Members believe in the rightness of their cause and therefore ignore the ethical or moral consequences of their decisions. 4. Stereotyped views of out-groups. Negative views of “enemy” make effective responses to conflict seem unnecessary. Remember how those who wouldn't go along with the dot-com bubble were dismissed as simply not getting it. 5. Direct pressure on dissenters. Members are under pressure not to express arguments against any of the group’s views. 6. Self-censorship. Doubts and deviations from the perceived group consensus are not expressed. 7. Illusion of unanimity. The majority view and judgments are assumed to be unanimous. 8. "Mind guards" are appointed. Members protect the group and the leader from information that is problematic or contradictory to the group's cohesiveness, view, and/or decisions. This is confirmatory bias writ large.

Women also engage in aggression, and their victims are also typically members of their own sex. In studies of verbal aggression through derogation of competitors, for example, women slander the physical appearance of their rivals (Buss & Dedden, 1990; Campbell, 1993, 1999). In the modern world of the internet, women are more likely than men to denigrate and cyber-bully other women by commenting negatively about their physical appearance and promiscuous sexual conduct (Wyckoff et al., in press). The forms of aggression committed by women, however, are typically less violent and hence less risky than those committed by men—facts that are accounted for by the theory of parental investment and sexual selection (see Campbell, 1995). Indeed, selection may operate against women who take the large physical risks entailed by aggression. Evolutionary psychologist Anne Campbell argues that women need to place a higher value on their own lives than do men on theirs, given the fact that infants depend on maternal care more than on paternal care (Campbell, 1999). Women’s evolved psychology, therefore, should reflect greater fearfulness of situations that pose a physical threat of bodily injury—a prediction that is well supported by the empirical findings (Campbell, 1999, 2002).

Here are my simple rules for identifying market tops and bottoms: 1. Market tops are relatively easy to recognize. Buyers generally become overconfident and almost always believe “this time is different.” It’s usually not. 2. There’s always a surplus of relatively cheap debt capital to finance acquisitions and investments in a hot market. In some cases, lenders won’t even charge cash interest, and they often relax or suspend typical loan restrictions as well. Leverage levels escalate compared to historical averages, with borrowing sometimes reaching as high as ten times or more compared to equity. Buyers will start accepting overoptimistic accounting adjustments and financial forecasts to justify taking on high levels of debt. Unfortunately most of these forecasts tend not to materialize once the economy starts decelerating or declining. 3. Another indicator that a market is peaking is the number of people you know who start getting rich. The number of investors claiming outperformance grows with the market. Loose credit conditions and a rising tide can make it easy for individuals without any particular strategy or process to make money “accidentally.” But making money in strong markets can be short-lived. Smart investors perform well through a combination of self-discipline and sound risk assessment, even when market conditions reverse.

no matter how you look at the issue, prevention is a fundamentally preferable and more cost-effective way to promote health and longevity. Most people agree that we invest insufficiently in prevention, but they would also surmise that it is difficult to get young, healthy people to avoid behaviors that increase their risk of future illness. Consider smoking, which causes more preventable deaths than any major risk factor (the other big ones being physical inactivity, poor diet, and alcohol abuse). After prolonged legal battles, public health efforts to discourage smoking have managed to halve the percentage of Americans who smoke since the 1950s.19 Yet 20 percent of Americans still smoke, causing 443,000 premature deaths in 2011 at a direct cost of $96 billion per year. Likewise, most Americans know they should be physically active and eat a healthy diet, yet only 20 percent of Americans meet the government’s recommendations for physical activity, and fewer than 20 percent meet government dietary guidelines.20 There are many, diverse reasons we are bad at persuading, nudging, or otherwise encouraging people to use their bodies more as they evolved to be used (more on this later), but one contributing factor could be that we are still following in the footsteps of the marquis de Condorcet, waiting for the next promised breakthrough. Scared of death and hopeful about science, we spend billions of dollars trying to figure out how to regrow diseased organs, hunting for new drugs, and designing artifical body parts to replace the ones we wear out. I am in no way suggesting that we cease investing in these and other areas. Quite the contrary: let’s spend more! But let’s not do so in a way that promotes the pernicious feedback loop of just treating mismatch diseases rather than preventing them. In practical

The alien ship was already thundering towards the upper reaches of the atmosphere, on its way out into the appalling void which separates the very few things there are in the Universe from each other. Its occupant, the alien with the expensive complexion, leaned back in its single seat. His name was Wowbagger the Infinitely Prolonged. He was a man with a purpose. Not a very good purpose, as he would have been the first to admit, but it was at least a purpose and it did at least keep him on the move. Wowbagger the Infinitely Prolonged was --- indeed, is --- one of the Universe's very small number of immortal beings. Those who are born immortal instinctively know how to cope with it, but Wowbagger was not one of them. Indeed he had come to hate them, the load of serene bastards. He had had his immortality thrust upon him by an unfortunate accident with an irrational particle accelerator, a liquid lunch and a pair of rubber bands. The precise details of the accident are not important because no one has ever managed to duplicate the exact circumstances under which it happened, and many people have ended up looking very silly, or dead, or both, trying. Wowbagger closed his eyes in a grim and weary expression, put some light jazz on the ship's stereo, and reflected that he could have made it if it hadn't been for Sunday afternoons, he really could have done. To begin with it was fun, he had a ball, living dangerously, taking risks, cleaning up on high-yield long-term investments, and just generally outliving the hell out of everybody. In the end, it was the Sunday afternoons he couldn't cope with, and that terrible listlessness which starts to set in at about 2:55, when you know that you've had all the baths you can usefully have that day, that however hard you stare at any given paragraph in the papers you will never actually read it, or use the revolutionary new pruning technique it describes, and that as you stare at the clock the hands will move relentlessly on to four o'clock, and you will enter the long dark teatime of the soul. So things began to pall for him. The merry smiles he used to wear at other people's funerals began to fade. He began to despise the Universe in general, and everyone in it in particular. This was the point at which he conceived his purpose, the thing which would drive him on, and which, as far as he could see, would drive him on forever. It was this. He would insult the Universe.

Rejecting failure and avoiding mistakes seem like high-minded goals, but they are fundamentally misguided. Take something like the Golden Fleece Awards, which were established in 1975 to call attention to government-funded projects that were particularly egregious wastes of money. (Among the winners were things like an $84,000 study on love commissioned by the National Science Foundation, and a $3,000 Department of Defense study that examined whether people in the military should carry umbrellas.) While such scrutiny may have seemed like a good idea at the time, it had a chilling effect on research. No one wanted to “win” a Golden Fleece Award because, under the guise of avoiding waste, its organizers had inadvertently made it dangerous and embarrassing for everyone to make mistakes. The truth is, if you fund thousands of research projects every year, some will have obvious, measurable, positive impacts, and others will go nowhere. We aren’t very good at predicting the future—that’s a given—and yet the Golden Fleece Awards tacitly implied that researchers should know before they do their research whether or not the results of that research would have value. Failure was being used as a weapon, rather than as an agent of learning. And that had fallout: The fact that failing could earn you a very public flogging distorted the way researchers chose projects. The politics of failure, then, impeded our progress. There’s a quick way to determine if your company has embraced the negative definition of failure. Ask yourself what happens when an error is discovered. Do people shut down and turn inward, instead of coming together to untangle the causes of problems that might be avoided going forward? Is the question being asked: Whose fault was this? If so, your culture is one that vilifies failure. Failure is difficult enough without it being compounded by the search for a scapegoat. In a fear-based, failure-averse culture, people will consciously or unconsciously avoid risk. They will seek instead to repeat something safe that’s been good enough in the past. Their work will be derivative, not innovative. But if you can foster a positive understanding of failure, the opposite will happen. How, then, do you make failure into something people can face without fear? Part of the answer is simple: If we as leaders can talk about our mistakes and our part in them, then we make it safe for others. You don’t run from it or pretend it doesn’t exist. That is why I make a point of being open about our meltdowns inside Pixar, because I believe they teach us something important: Being open about problems is the first step toward learning from them. My goal is not to drive fear out completely, because fear is inevitable in high-stakes situations. What I want to do is loosen its grip on us. While we don’t want too many failures, we must think of the cost of failure as an investment in the future.

Looking back on getting fired from Apple in 1985, Steve Jobs said, “It was awful-tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept me going was that I loved what I did.” I saw that to do exceptionally well you have to push your limits and that, if you push your limits, you will crash and it will hurt a lot. You will think you have failed—but that won’t be true unless you give up. Believe it or not, your pain will fade and you will have many other opportunities ahead of you, though you might not see them at the time. The most important thing you can do is to gather the lessons these failures provide and gain humility and radical open-mindedness in order to increase your chances of success. Then you press on. My final lesson was perhaps the most important one, because it has applied again and again throughout my life. At first, it seemed to me that I faced an all-or-nothing choice: I could either take on a lot of risk in pursuit of high returns (and occasionally find myself ruined) or I could lower my risk and settle for lower returns. But I needed to have both low risk and high returns, and by setting out on a mission to discover how I could, I learned to go slowly when faced with the choice between two things that you need that are seemingly at odds. That way you can figure out how to have as much of both as possible. There is almost always a good path that you just haven’t discovered yet, so look for it until you find it rather than settle for the choice that is then apparent to you. As difficult as this was, I eventually found a way to have my cake and eat it too. I call it the “Holy Grail of Investing,” and it’s the secret behind Bridgewater’s success.

a young Goldman Sachs banker named Joseph Park was sitting in his apartment, frustrated at the effort required to get access to entertainment. Why should he trek all the way to Blockbuster to rent a movie? He should just be able to open a website, pick out a movie, and have it delivered to his door. Despite raising around $250 million, Kozmo, the company Park founded, went bankrupt in 2001. His biggest mistake was making a brash promise for one-hour delivery of virtually anything, and investing in building national operations to support growth that never happened. One study of over three thousand startups indicates that roughly three out of every four fail because of premature scaling—making investments that the market isn’t yet ready to support. Had Park proceeded more slowly, he might have noticed that with the current technology available, one-hour delivery was an impractical and low-margin business. There was, however, a tremendous demand for online movie rentals. Netflix was just then getting off the ground, and Kozmo might have been able to compete in the area of mail-order rentals and then online movie streaming. Later, he might have been able to capitalize on technological changes that made it possible for Instacart to build a logistics operation that made one-hour grocery delivery scalable and profitable. Since the market is more defined when settlers enter, they can focus on providing superior quality instead of deliberating about what to offer in the first place. “Wouldn’t you rather be second or third and see how the guy in first did, and then . . . improve it?” Malcolm Gladwell asked in an interview. “When ideas get really complicated, and when the world gets complicated, it’s foolish to think the person who’s first can work it all out,” Gladwell remarked. “Most good things, it takes a long time to figure them out.”* Second, there’s reason to believe that the kinds of people who choose to be late movers may be better suited to succeed. Risk seekers are drawn to being first, and they’re prone to making impulsive decisions. Meanwhile, more risk-averse entrepreneurs watch from the sidelines, waiting for the right opportunity and balancing their risk portfolios before entering. In a study of software startups, strategy researchers Elizabeth Pontikes and William Barnett find that when entrepreneurs rush to follow the crowd into hyped markets, their startups are less likely to survive and grow. When entrepreneurs wait for the market to cool down, they have higher odds of success: “Nonconformists . . . that buck the trend are most likely to stay in the market, receive funding, and ultimately go public.” Third, along with being less recklessly ambitious, settlers can improve upon competitors’ technology to make products better. When you’re the first to market, you have to make all the mistakes yourself. Meanwhile, settlers can watch and learn from your errors. “Moving first is a tactic, not a goal,” Peter Thiel writes in Zero to One; “being the first mover doesn’t do you any good if someone else comes along and unseats you.” Fourth, whereas pioneers tend to get stuck in their early offerings, settlers can observe market changes and shifting consumer tastes and adjust accordingly. In a study of the U.S. automobile industry over nearly a century, pioneers had lower survival rates because they struggled to establish legitimacy, developed routines that didn’t fit the market, and became obsolete as consumer needs clarified. Settlers also have the luxury of waiting for the market to be ready. When Warby Parker launched, e-commerce companies had been thriving for more than a decade, though other companies had tried selling glasses online with little success. “There’s no way it would have worked before,” Neil Blumenthal tells me. “We had to wait for Amazon, Zappos, and Blue Nile to get people comfortable buying products they typically wouldn’t order online.

Key Points: ● Transparency - Blockchain offers significant improvements in transparency compared to existing record keeping and ledgers for many industries. ● Removal of Intermediaries – Blockchain-based systems allow for the removal of intermediaries involved in the record keeping and transfer of assets. ● Decentralization – Blockchain-based systems can run on a decentralized network of computers, reducing the risk of hacking, server downtime and loss of data. ● Trust – Blockchain-based systems increase trust between parties involved in a transaction through improved transparency and decentralized networks along with removal of third-party intermediaries in countries where trust in the intermediaries doesn’t exist. ● Security – Data entered on the blockchain is immutable, preventing against fraud through manipulating transactions and the history of data. Transactions entered on the blockchain provide a clear trail to the very start of the blockchain allowing any transaction to be easily investigated and audited. ● Wide range of uses - Almost anything of value can be recorded on the blockchain and there are many companies and industries already developing blockchain-based systems. These examples are covered later in the book. ● Easily accessible technology – Along with the wide range of uses, blockchain technology makes it easy to create applications without significant investment in infrastructure with recent innovations like the Ethereum platform. Decentralized apps, smart contracts and the Ethereum platform are covered later in the book. ● Reduced costs – Blockchain-based ledgers allow for removal of intermediaries and layers of confirmation involved in transactions. Transactions that may take multiple individual ledgers, could be settled on one shared ledger, reducing the costs of validating, confirming and auditing each transaction across multiple organizations. ● Increased transaction speed – The removal of intermediaries and settlement on distributed ledgers, allows for dramatically increased transaction speeds compared to a wide range of existing systems.

Absorbingly articulate and infinitely intelligent . . . There is nothing pop about Kahneman's psychology, no formulaic story arc, no beating you over the head with an artificial, buzzword -encrusted Big Idea. It's just the wisdom that comes from five decades of honest, rigorous scientific work, delivered humbly yet brilliantly, in a way that will forever change the way you think about thinking:' -MARIA POPOVA, The Atlantic "Kahneman's primer adds to recent challenges to economic orthodoxies about rational actors and efficient markets; more than that, it's a lucid, mar- velously readable guide to spotting-and correcting-our biased misunder- standings of the world:' -Publishers Weekly (starred review) "The ramifications of Kahneman's work are wide, extending into education, business, marketing, politics ... and even happiness research. Call his field 'psychonomics: the hidden reasoning behind our choices. Thinking, Fast and Slow is essential reading for anyone with a mind:' -KYLE SMITH,NewYorkPost "A stellar accomplishment, a book for everyone who likes to think and wants to do it better." - E. JAMES LIEBERMAN ,Libraryfournal "Daniel Kahneman demonstrates forcefully in his new book, Thinking, Fast and Slow, how easy it is for humans to swerve away from rationality:' -CHRISTOPHER SHEA , The Washington Post "A tour de force .. . Kahneman's book is a must-read for anyone interested in either human behavior or investing. He clearly shows that while we like to think of ourselves as rational in our decision making, the truth is we are subject to many biases. At least being aware of them will give you a better chance of avoiding them, or at least making fewer of them:' -LARRY SWEDROE, CBS News "Brilliant .. . It is impossible to exaggerate the importance of Daniel Kahne- man's contribution to the understanding of the way we think and choose. He stands among the giants, a weaver of the threads of Charles Darwin, Adam Smith and Sigmund Freud. Arguably the most important psycholo- gist in history, Kahneman has reshaped cognitive psychology, the analysis of rationality and reason, the understanding of risk and the study of hap pi- ness and well-being ... A magisterial work, stunning in its ambition, infused

We don't die willingly. The more invested we are in the worlds projected by patterns, the stronger the denial, anger, and bargaining, and the despair of depression. Insight practice is inherently frustrating because you are looking to see where, at first, you are unable to see--beyond the world of the patterns. Another way to look at insight practice is to see that the process has three stages: shock, disorganization, and reorganization. The first stage starts when you see beyond illusion. You experience a shock. You react by denying that you saw what you saw, saying, in effect, "That makes no sense. I'll just forget about that." Unfortunately, or fortunately, your experience of seeing is not so easily denied. It is too vivid, too real, to ignore. Now you become angry because the illusion in which you have lived has been shattered. You know you can't go back, but you don't want to go forward. You are still attached to the world of patterns. You feel anxious, and the anxiety gradually matures into grief. You now know that you have to go forward. You experience the pain of separating from what you understood, just as the lama in the example experienced pain at the loss of his worldview. You then enter a period of disorganization. You withdraw, become apathetic, lose your energy for life, become restless, and routinely reject new possibilities or directions. You surrender to the changes taking place but do nothing to move forward. A major risk at this stage is that you remain in a state of disorganization. You hold on to an aspect of the old world. parents who have lost a child in an accident or to violence, for example, have great difficulty in letting go. They may keep the child's bedroom just as it was. Their views and expectations of life have been shattered, and, understandably, they cling to a few of the shards. They may stay in the stage of disorganization for a long time. The third stage of insight is reorganization. You experience a shift, and you let the old world go, even the shards. You accept the world that you see with your new eyes. What was previously seen as being absolute and real is now seen differently. The old structures, beliefs, and behaviors no longer hold, and you enter a new life.

Switch from a Performance Focus to a Mastery Focus There’s a way to keep your standards high but avoid the problems that come from perfectionism. If you can shift your thinking from a performance focus to a mastery focus, you’ll become less fearful, more resilient, and more open to good, new ideas. Performance focus is when your highest priority is to show you can do something well now. Mastery focus is when you’re mostly concerned with advancing your skills. Someone with a mastery focus will think, “My goal is to master this skill set” rather than “I need to perform well to prove myself.” A mastery focus can help you persist after setbacks. To illustrate this, imagine the following scenario: Adam is trying to master the art of public speaking. Due to his mastery goal, he’s likely to take as many opportunities as he can to practice giving speeches. When he has setbacks, he’ll be motivated to try to understand these and get back on track. His mastery focus will make him more likely to work steadily toward his goal. Compare this with performance-focused Rob, who is concerned just with proving his competence each time he gives a talk. Rob will probably take fewer risks in his style of presentation and be less willing to step outside his comfort zone. If he has an incident in which a talk doesn’t go as well as he’d hoped, he’s likely to start avoiding public speaking opportunities. Mastery goals will help you become less upset about individual instances of failure. They’ll increase your willingness to identify where you’ve made errors, and they’ll help you avoid becoming so excessively critical of yourself that you lose confidence in your ability to rectify your mistakes. A mastery focus can also help you prioritize—you can say yes to things that move you toward your mastery goal and no to things that don’t. This is great if you’re intolerant of uncertainty, because it gives you a clear direction and rule of thumb for making decisions about which opportunities to pursue. Experiment: What’s your most important mastery goal right now? Complete this sentence: “My goal is to master the skills involved in ___.” Examples include parenting, turning more website visitors into buyers, property investment, or self-compassion. Based on the mastery goal you picked, answer the following questions. Make your answers as specific as possible. How would people with your mastery goal: 1. React to mistakes, setbacks, disappointments, and negative moods? 2. Prioritize which tasks they work on? What types of tasks would they deprioritize? 3. React when they’d sunk a lot of time into something and then realized a particular strategy or idea didn’t have the potential they’d hoped it would? 4. Ensure they were optimizing their learning and skill acquisition? 5. React when they felt anxious?