Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇
Which of these two options would you choose?
|
Daniel Kahneman, the author of Thinking, Fast and Slow, did an experiment. He gave two options: Would you accept a gamble that offers a 10% chance to win $95 and a 90% chance to lose $5? Or. Would you pay $5 to participate in a lottery that offers a 10% chance to win $100 and a 90% chance to win nothing? Well… if you studied engineering, you have convinced yourself that the two problems are identical. In both, you are either richer by $95 or poorer by $5. But that’s engineering mindset… No question why we take so long to find someone that can endure us. The reality is that the second option attracts more people. A bad outcome is much more acceptable if it is framed as the cost of a lottery ticket that did not win than if it is simply described as losing a gamble. We should not be surprised: losses evoke stronger negative feelings than costs. If you have no idea what I’m talking about, you should take a look to the book below. It will teach you to avoid gambles and call some costs, investments.
PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. |
Vicente Valencia
Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇
Masa is the founder of a Japanese bank and one of the greatest investors in history. Once, the guy went to the authority responsible for issuing the licences required to sell internet services and threatened to set himself on fire if they didn’t give him one immediately. He had been asking for it for a while. Something many don’t understand is that success requires conflict. Raising up in the food chain too. Every time you try to grab what you deserve, a gatekeeper appears to tell you no. And...
People often ask me what books they should read. Infrastructure, project management, business management… I have a few that could definitely help you. But let me tell you something. Those who read a lot can teach a lot. Those who have done a lot can teach even more. That’s why I’ve always tried to surround myself with people with stripes. With scars. With little hair left. With dark circles under their eyes from fighting too many battles. And they also had to meet one more requirement… They...
Yesterday a few of you came with a question… If we prefer a good narrative to the truth, does it apply to PPPs? Absolutely. PPP includes the words Private and Public. This is meat for bored politicians and newspapers. You have conflicting words… Add Partnership and journalists queue to hit you in the face. No matter what statistics say. No matter how many successful projects have been delivered through a PPP. No matter the risk profiles, the alignment of the parties, the governance… that PPP...