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Acceptable Flaws · Collaborative Fund

Long-term and short-term thinking

Long-term thinking is difficult to put in action because the long run is a collection of short runs that have to be handled, displayed, and used as information to gauge whether a long-term reward still exists.

Short-term thinking can be the only way you’ll survive long enough to experience long-term results.

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Acceptable Flaws · Collaborative Fund

Acceptable Flaws · Collaborative Fund

https://www.collaborativefund.com/blog/acceptable-flaws/

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Key Ideas

Some downsides are unavoidable

Life is a little easier if you expect a certain chunk of it to go wrong no matter how hard you try.

Smart people screw up. Good people have bad days. Nice people lose their temper.

How we think about risk and opportunity

It’s impossible to think about risk and opportunity without a reference point. And ours is at most incomplete (if not totally wrong).

Everything we think about risk and opportunity is shaped by our own specific situation and personal experience. So everybody has a view of risk shaped by narrow experiences but applied to the broad world.

Underestimating the odds of change

A fair evaluation of how uncertain the future is would make most people refuse to get out of bed every morning. Nothing would get done in the world if people were only driven by the accurate probability of their future success.

A little blindness, a little over-optimism, and a little denial is one of the economy’s most potent fuels.

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