Month: March 2018

The Self Made Billionaire Notes

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“Changes came quickly, but they were based on direct engagement with customers.”  P 82

Billionaires are no more inclined towards risk than the average person.  The cliche of the entreprenurial risk taker is not true.   Instead billionaires do not over value what they already have and over wiegh the risks that they are taking.   These are both tendencies of the average person.   Billionaires do not take irrational risks they just see the risks more clearly and objectively not placing excessive weight to their view of risks.   (P119 / 120 paraphrased)

Billionaires often have parrel streams of income so they do not have all their eggs in one basket.  (P128 Paraphased)

“their definition of risk, is one that in the event of failure, to dust off and start again” P131  In other words billionaires are more resiliaiant.  They often don’t truely succeed until their third or fourth business.

“You can try and fail a hundred times , but you only have to get it right once”  MArk Cuban P135

Lead and Lag Indicators

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When tracking movement towards an objective we can look at either lead or lag indicators.   If we were trying to lose weight we could measure our weight every week.   This would be a lag indicator that would tell us if our efforts had been successful or not.   Alternatively we could track the calories we consumed each day.   This would be a lead indicator.   Making sure we conformed to certain requirements would tell us if we were taking the actions that would result in our desired outcome.   Looking at lead indicators is often more effective as your daily activity and therefore your movement towards the goal.   Lag indicators are useful and should be used as well but they tell you after thing have already happened.   The results from a lag indicator might be the consquence of actions that were taken perhaps a few weeks previously.   It is therefore less clear what actions actually caused the outcome you recieve.