Questions to help you see through the lens of opportunity cost:

1. And then what?
2. Compared to what?
3. At the expense of what?
Direct costs are mostly obvious, visible, and easy to measure. Most people only focus on these.

Indirect costs are mostly invisible and uncertain. Seeing them requires judgment and foresight.

If you only think about direct costs, you'll only see what everyone else sees.
Footnote: Credit to Warren Buffett, Charlie Munger, and Peter Kaufman for helping me see this.

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Shane Parrish

Shane Parrish Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ShaneAParrish

10 Jan
In 2020, @Chamath took the world by storm, fundamentally disrupting entire industries along the way.

And he’s just getting started.

I recently chatted with him on @TKPPodcast. Here are five lessons learned from that conversation.
1/ An investment in your mental health is the single most important investment you will make.

"Being happy personally is the pathway to help everything else make sense."

Open up. Talk to someone. It doesn't make you weak.

It will make you a stronger, happier, clearer thinker.
2/ Embrace imposter syndrome.

"The sense of being an imposter is overpowering. And it's like this dragon that I've been trying to slay my
whole life, and I haven't been able to."

Embrace this feeling. Get uncomfortable. Let it fuel you to learn and grow.
Read 8 tweets
5 Jan
Success is largely the standards you set for yourself.
The people you hang around.
The information you consume.
The habits you choose.
The food you eat.
Most of our standards are inherited by chance nurture: our parents and our environment.

Exceptional people have exceptional standards. If you're lucky, at a young age you work closely with a true master.

If you can't learn exceptional standards firsthand, there is another path:
Read 4 tweets
27 Dec 20
Top 5 conversations of 2020 on @TKPPodcast as voted by number of listens in first 30 days.

Episode 82 Bill Ackman (@BillAckman)

The legendary activist investor talks about lessons he’s learned growing up, raising a family, what drives him forward and back up from failure, consuming information and ideas, and facing criticism.…
Episode 94: Chamath Palihapitiya (@chamath)

The Founder and CEO of Social Capital reveals what it means to be an observer of the present, how to think in first principles, the psychology of successful investing.…
Read 9 tweets
10 Dec 20
There is a mental model known as inversion.

And it is one of the most powerful thinking tools you can incorporate into your daily life.

Here's how you can use it to think better.

The trick to inversion is simple: figure out what you don’t want and avoid it.

Charlie Munger, the legendary partner of Warren Buffett summarized inversion when he said, “All I want to know is where I’m going to die, so I’ll never go there.”
Problems get easier when you turn them around. Rather than ask what you can do to be happy, avoid all the things that make you miserable.
Read 13 tweets
27 Nov 20
There is a concept known as probabilistic thinking.

Here is how you can use it in work and life.

Probability means different things to different people.

Probabilistic thinking is essentially trying to estimate, using some tools of math and logic, the likelihood of any specific outcome coming to pass.
The core of probabilistic thinking is understanding that nearly infinite alternative outcomes could have taken place than did. This means nearly infinite possibilities are possible going forward, which doesn’t mean they are equally probable.
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!