deepstash

Beta

Preserving Optionality: Preparing for the Unknown

Chris Rock

"Wealth is not about having a lot of money; it’s about having a lot of options.”

Chris Rock

261 SAVES


This is a professional note extracted from an online article.

Read more efficiently

Save what inspires you

Remember anything

IDEA EXTRACTED FROM:

Preserving Optionality: Preparing for the Unknown

Preserving Optionality: Preparing for the Unknown

https://fs.blog/2020/03/preserving-optionality/

fs.blog

7

Key Ideas

Preserving optionality

Preserving optionality means avoiding limiting choices or dependencies. It means staying open to opportunities and always having a backup plan.
The more options we have, the better suited we are to deal with unpredictability and uncertainty.

Having options

We are faced with options all the time, but life-altering ones often come up during times of great change. These options are the ones we have the hardest time capitalizing on.
If we’ve specialized too much, change is a threat, not an opportunity. Thus, if we aren’t certain where the opportunities are going to be (and we never are), then we need to make choices to keep our options open.

Navigating difficult times

When times are hard is when many investors make their fortunes and when entrepreneurs innovate. They have to see the opportunity in chaos.

Strength vs. optionality

This is also known as the coach’s dilemma.
Over-specializing in one area is highly limiting, especially if it requires extensive upkeep. Like a football player, we can retain optionality by avoiding overtly damaging risks and ensuring we stay in the game for as long as possible—whatever that game is. That might mean lifting less metaphorical weight at any one time, while also working to keep ourselves flexible.

The tyranny of small decisions

It happens when we make small, rational decisions that end up removing options over time.
Small decisions can lead to bad outcomes. At some point, alternatives disappear, thus we lose our optionality.

A matter of perspective

Optionality can be a matter of perspective.
Preserving optionality means changing our attitudes as our circumstances, but also learning to spot opportunities (and to make them).

Chris Rock

Chris Rock

"Wealth is not about having a lot of money; it’s about having a lot of options.”

EXPLORE MORE AROUND THESE TOPICS:

SIMILAR ARTICLES & IDEAS:

The Time Domain

Time measurement seems so crucial that athletes forget what to do without any measurement of time.

Running an interval without any clock makes you keep in touch with your internal feelings an...

Disrupted

Disruption and a skewing of your personal space is a way to challenge your comfort zone and grow towards becoming a seasoned athlete who can perform in unfamiliar territory.

To Each His Own

Every race is a search for your individual limits. In an interval workout, the coach tells you exactly how many repetitions to do, and then you stop. The limit is imposed externally. 

For athletes to run to their maximum potential in races, they are the ones that should decide how many repetitions they needed to do in order to reach exhaustion.

one more idea

The Self-Perception of Experts
The Self-Perception of Experts

New research on the accuracy of future predictions by people has some interesting findings:

  • Experts, largely considered an authority, fared poorly than the novices, due to their over...
Facing Change: Millennials Vs Boomers

Past experience, which many experts think helps them to better understand the world, surprisingly does not improve the ability to predict the future. The research data showed accuracy levels of the younger generation (25 to 35 years of age) being the highest.

Old people are slower to comprehend change, faster to believe and share fake news and less likely to be objective.

Humility

Working with an open mind, ready to dive into unfamiliar territory and learning new things, makes the entire exercise stress-free and rewarding experience. This state of mind, along with basic humility makes for better performance. One’s arrogance, ego and past can negatively affect the prediction quality.

A humble attitude also makes people listen to others opinions and share their own unique insights, helping collaboration and constructive teamwork.

one more idea

Data and how it frames your thinking
Data and how it frames your thinking

What’s more important than how much data you have is how it frames the way you think.

Some leader when they're under pressure to appear decisive, approach complex situa...

Thomas Bayes'd thought experiment

He wondered how he could predict the probability of a future event if he only knew how many times it had occurred, or not, in the past. Bayes figured out that even when it comes to uncertain outcomes, we can update our knowledge by incorporating new, relevant information as it becomes available.

His theorem describes the probability of an event, based on prior knowledge of conditions that might be related to the event.

Importance of using probabilistic thinking

Data can be imperfect, incomplete, or uncertain. Most of the time, there is more than one explanation for why things happened the way they did; by examining those alternative explanations using probability, you can gain a better understanding of causality and what is really going on.

one more idea