deep**stash**

Beta

7 Things That Self-Made Billionaires Do Differently

- Understand the different outcomes that could happen (both positive and negative)
- Calculate the expected return or loss of each outcome
- Attach a probability to each outcome
- Understanding the magnitude of the return or loss
- Multiply the probability by the magnitude (probability of winning * value of win) — (probability of losing * cost of the loss)
- Add up and subtract all of the expected returns and losses
- To get started you don’t need to know the exact probabilities. Just following the process will give you unique insights you wouldn’t have had otherwise.

5026 SAVES

This is a professional note extracted from an online article.

**Read** more efficiently

**Save** what inspires you

**Remember** anything

IDEA EXTRACTED FROM:

2

Key Ideas

- Understand the different outcomes that could happen (both positive and negative)
- Calculate the expected return or loss of each outcome
- Attach a probability to each outcome
- Understanding the magnitude of the return or loss
- Multiply the probability by the magnitude (probability of winning * value of win) — (probability of losing * cost of the loss)
- Add up and subtract all of the expected returns and losses
- To get started you don’t need to know the exact probabilities. Just following the process will give you unique insights you wouldn’t have had otherwise.

**Brainstorm as much as you can**to avoid availability bias (choosing the first solution that comes to mind rather than the best solution).**Test**as many**potential solutions**as you can afford to. This avoids the confirmation bias of rationalizing the one solution you chose.**Evaluate the criteria for each experiment.****Learn from every experiment,**successful or not.