The @JeffBezos Regret Minimization Framework is a simple yet powerful mental model for making important decisions and unlocking growth in your career, startup, business, relationships, or life.
A short thread on how it works and how it can change your life...
Jeffrey Preston Bezos is an American entrepreneur and technologist.
He is most well known as the founder and CEO (soon-to-be executive chairman) of Amazon and the founder of Blue Origin.
A legendary figure today, he may have remained anonymous if not for one key decision.
In 1994, at age 30, Jeff Bezos was a star at D.E. Shaw, a successful quant-focused hedge fund.
He was on a lucrative path.
But he had become obsessed with a new thing called "the internet" and its power to change the world.
He had a vision of participating in that future.
Bezos had a decision to make.
Stay at D.E. Shaw - with a high likelihood of wealth creation and "success" - or leave and pursue his speculative, crazy new idea.
He developed a framework for making this (and many future) decisions:
The Regret Minimization Framework.
The Regret Minimization Framework is simple.
The goal is to minimize the number of regrets in life.
So when faced with a difficult decision: (1) Project yourself forward into the future. (2) Look back on the decision. (3) Ask "Will I regret not doing this?" (4) Act accordingly.
We all know what he ultimately decided...
Bezos beautifully summarized the framework and decision in the interview below.
"Okay, now I’m looking back on my life. I want to have minimized the number of regrets I have."
The power of the Bezos Regret Minimization Framework is in its simplicity.
It provides a clear lens through which to see the world.
It separates you from the present-day fears and uncertainties that clog decision-making pathways.
It forces gut and intuition to the forefront.
So the next time you are faced with a difficult decision - in your career, startup, relationships, or life - take a lesson from Jeff Bezos and give the Bezos Regret Minimization Framework a try.
For more on this framework, I really enjoyed this article from the great @awealthofcs.
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The Eisenhower Decision Matrix is a powerful tool for prioritizing your time and unlocking growth in your career, startup, business, relationships, or life.
A thread on how it works and how it can change your life...
Dwight D. Eisenhower was an American military officer and politician.
He was a five-star general in the United States Army and the first Supreme Commander of NATO.
After his military career, he was elected as the 34th President of the United States, serving from 1953 to 1961.
In both his military and civilian careers, Eisenhower stood out for his prolific productivity.
His secret?
Eisenhower observed that people often confuse the urgent with the important. He did not.
"What is important is seldom urgent and what is urgent is seldom important."
For more on mental models, check out my meta-thread of five powerful mental models for driving non-linear outcomes in your investing, business, and life.
If you enjoyed this, follow me for more threads on mental models, business, money, finance, and economics. You can find all of my threads in the meta-thread below.
The concept of network effects is a powerful mental model through which to evaluate businesses, startups, money, human societies, and nature.
But what are “network effects” and how do they work?
Here's Network Effects 101!
First, a few definitions.
A network effect is a phenomenon by which each incremental user of a product or service adds value to the existing user base.
The product or service becomes more valuable to the users as more people use it.
It is a positive feedback loop.
The idea originated with Theodore Vail, the president of American Telephone and Telegraph (AT&T).
In the company's 1908 annual report, Vail wrote, "[The telephone's] value depends on the connection with the other telephones — and increases with the number of connections."
The Feynman Technique is a foundational mental model for unlocking growth in your career, startup, business, or writing.
A thread on how it works and how it can change your life...
Richard Feynman was an American theoretical physicist.
He won the Nobel Prize in Physics in 1965 for his groundbreaking work in quantum electrodynamics.
Feynman's true genius, however, was in his ability to convey extremely complex ideas in simple, digestible ways.
Richard Feynman observed that complexity and jargon are often used to mask a lack of deep understanding.
The Feynman Technique is a learning framework that forces you to strip away needless complexity and develop a deep, elegant understanding of a given topic.