By Nassim Nicholas Taleb
1. Align Incentives: “Eat Your Own Cooking.”
Taleb argues that decisions are better when those making them bear the consequences. In everyday life, this translates to considering the potential downsides of your actions before taking them.
2. Seek Out Truthful Advice: “Don’t Take Advice from People Who Don’t Have Skin in the Game.” Be wary of advice from those who won’t face the repercussions if it goes wrong. Look for guidance from people who have a stake in the outcome.
3. Transparency Builds Trust: “Show, Don’t Tell.” Actions speak louder than words. When making recommendations or promoting ideas, demonstrate your own commitment to them.
4. Embrace Responsibility: “You Can’t Separate Risk from Responsibility.” Taking risks is part of life, but so is accepting responsibility for the results.
5. Seek Out Asymmetric Opportunities: “Look for Mismatches in Incentives.” Favor situations where the potential rewards outweigh the risks for you, while the opposite is true for others.
6. Beware of Bureaucracy: “Bureaucracy is a Construction by Which a Person is Separated from the Consequences of His or Her Actions.” Systems that shield people from the consequences of their decisions can breed inefficiency and irresponsibility.
7. Develop Healthy Skepticism: “Bullshit Detection is a Survival Skill.” Learn to identify situations where incentives are misaligned, and where people might be promoting ideas that benefit them more than you.
8. Learn from Mistakes: “People Don’t Learn from Experience; They Learn from Bad Experience.” Embrace challenges and setbacks as opportunities for growth. True learning often comes from facing the consequences of our actions.
9. Embrace Uncertainty: “The World Belongs to Those Who Have the Stomach for Uncertainty and Risk.” The future is unpredictable. Don’t be afraid to take calculated risks and adapt to changing circumstances.
10. Live a Life of Integrity: “Having Skin in the Game Aligns Incentives and Reduces Conflicts of Interest.” Be someone who stands behind their decisions and actions. This builds trust and fosters a sense of personal accountability.
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