https://www.youtube.com/watch?v=xQLQoGD6Sjg

1 00:00:00.000 --\> 00:01:00.000 what's going on everyone uh last night
i was speaking uh i was one of the speakers and clubhouse it's a new app
uh you can follow me there it's at hormozy um but anyways i i was i was
one of the speakers of this app and they were asking questions like if
you had to start all over you know what would you do what's the biggest
mistakes you've made and things like that and one of the things that
came up in my mind is one of the hardest things about being an
entrepreneur which is the disconnect between the right decision and the
right outcome and so let me explain so you've you if you've listened to
my stuff i talk about repeating successful actions right find something
that works and keep doing it over and over again right but the thing is
is your decision-making process is ultimately the most valuable thing
valuable thing that you have right it's what makes you it's your picker
right it makes you decide what what way to go who you're going to marry
what business opportunity you're going to pursue how you're going to
price how you're going to start marketing what you're going to learn
first who you're going to you know get mentoring from all of these
things so you're going to become friends with like all of these are
decisions right and you know you can take the money away

2 00:01:00.000 --\> 00:02:00.000 from a billionaire and then they can
recreate it again elon musk you know lost it and then gained it all back
right and so like the thing is is the decision making is what ultimately
fuels all these things and the hardest part about entrepreneurship and
really i mean i think almost life in general is that you can make the
right decision and have the wrong outcome and i think and let me give
you a couple examples of this so for example um you may say you know
what like i look i listen to warren buffett i think he's a good investor
and so he says i wouldn't i wouldn't touch bitcoin right and i hear that
i'm like man well he knows a little bit more about it than i do but his
argument was simple it is speculative which means i'm buying it not
because it has intrinsic value but only because i believe that someone
else will buy it for more later right that's all it is he only believes
in investing in things that have intrinsic value and also produce right
so they actually have production so like a business you buy you still
own the business at the end and then it spits out production which would
be

3 00:02:00.000 --\> 00:03:00.000 profit or crops or whatever right so
that's the basic difference right and so the thing is is that you can
make the right decision so for example i chose not to buy bitcoin two
years ago or whatever and now the amount of money that it would have
been worth is a lot more was the decision wrong or was it that the
outcome did not match the quality of the decision and so let me explain
let me like unpack this if you are going to change the way you make
decisions because a decision that you made in the past that was probably
a good decision ended up bad you have to apply the same decision making
context or framework to everything else all right so let me explain so
if i say i'm now going to be a speculator right i'm going to be someone
who buys things with the hopes of selling them later for more even
though the thing itself doesn't have more value right if i choose to
start making those types of decisions then i have to think about all the
other investments i would have made and lost

4 00:03:00.000 --\> 00:04:00.000 money on as a result of that decision
making framework and the place that i heard this first was ray dalio in
principles so he's one of the richest men in the world uh an investor as
well he said one of the hardest things is passing up on an opportunity
and then seeing it you know do really really well right he's like and
but the thing is is i have to think to myself if i were to use the
decision-making framework that would have made that deal a winner then
i'd have to apply that same framework to all of these other businesses
or situations that would have been losers and my net net of having that
different decision making framework would ultimately cause me to lose
and so this has been one of the most powerful concepts for me as an
entrepreneur because what it does is it allows me to separate the
outcome from the quality of the decision why was it that i did these
things right and i i can't even tell you like so for example you know
actually i won't even give that one but like their their decisions that
i made when i was younger that ended up being you know poor later

5 00:04:00.000 --\> 00:05:00.000 but when i thought back about why i
made the decision i would make the same decision today so it's not fair
for me to say well i wouldn't have made the same call now but you can't
use the information that you have today to make the decision that you
would have made in the past because then it means that you're a
different person because you're not using information that you have
access to right and so claiming that the this decision that i did in the
past that didn't end up well you know working out in my favor was the
wrong call can just be really poisonous and it may not be true now if
you make a mistake because you had poor calculations and you repeat the
same mistake over and over again then you should consider looking at
your decision-making calculus and see if you need to tweak some things
right but for me this has been one of the hardest learned lessons and
emotionally one of the most trying is looking at decisions i've made
looking at the outcome and being able to separate was this a good
decision independent of the outcome and i'll wrap this up with just a
quick example to show you if you had a perfect baseball swing right
you're just an amazing you know

6 00:05:00.000 --\> 00:06:00.000 batter right if someone gets up there
and they're the best batter in the world and you strike out is it
because their swing is horrible is it because they they don't have the
right decision making about how they swing at pitches or how they pick
the pitches probably not he's probably really good batter right because
i just said he's the best but it still means he's going to strike out
and it still means he's going to he's gonna get out and hit pop flies
and all that kind of stuff but he's gonna be an amazing batter with
three you know 350 average or whatever and still two out of three times
he's gonna strike out or basically you know not get on base get out and
so when i think about that like you can be the best at this thing and
still only be right a certain percentage of the time right and so rather
than that batter striking out once and saying i need to change my swing
and then getting back up there and striking out again and be like i need
to change my swing and always resetting the baseline instead being like
i understand that if i apply this swing to enough at bats quite
literally i will get the opportunity to knock it out of the park and me
knocking out of

7 00:06:00.000 --\> 00:07:00.000 the park on one of these right
decisions will ultimately outweigh the negatives of the wrongs that i
have done right um and so for me obviously with in the context of your
own life like i talk about decision making in other videos but you want
to make sure that you never bet the farm and you don't put everything on
black when you cannot afford to lose right like don't bet everything but
i mean sometimes you know things get crazy but for the most part don't
bet everything the point being just like a big ball player you're going
to have these decisions that you have to make and not changing your
decision calculus your decision maker your picker every single time is
going to ultimately allow you to judge the quality of your decisions
based on these principles and so that is one of the hardest things that
i've had to learn and i hope that the illustration with baseball made
sense to you if it did drop a comment otherwise keeping awesome i'll
catch you guys next vid bye
