Go to the pain rather than avoid it. (Principles – Ray Dalio)

  1. identify, Accepting, and learning how to deal with your weaknesses
  2. preferring that to people around you be honest with you rather than keep their negative thoughts about you to themselves
  3. Being yourself rather than having to pretend to be strong where you are weak

Five Percent Better: The Compounding of Consistent Incremental Progress

Tagged: Self-Improvement, Thought and Opinion

When we want to improve ourselves, we often pursue dramatic changes. This approach is often unsustainable. A better idea is to go for small, incremental improvements that add up over time.

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Self-motivated, self-starting individuals are incredibly motivated to find their weaknesses. It’s not far-fetched to say that some of us actually seek to make ourselves perfect — rational, calculating beings making the right type of decisions at just the right times. But we’ve learned from Star Trek; we don’t look to eliminate emotion either and turn ourselves into Mr. Spock. We want just the right amount of emotion in our lives.

“People often overestimate what they can accomplish in one year. But they greatly underestimate what they could accomplish in five years.”

— Peter Drucker

If we’re night owls, we seek to become early risers. (Ben Franklin did it!). If we’re procrastinators, we look to become doers. If we’re always late to meetings, we look to be early to meetings. We want to eliminate our weaknesses and become a little More.

This is, of course, a laudable goal and one of the prime reasons for FS’s existence. But the self-starters among us have probably all run into the same problem: We don’t actually follow through on the things we know will make us better. We don’t eat the broccoli. We get a little too robotic. We get up at 8:30 when we said we’d do 5:30 from here on out. We leave that essay until the last second even though that was never going to happen again. We’re five minutes late. We don’t become lore at all, and the failure to get there makes us feel like less.

The culprit, I think, is the thought that any important change happens quickly. It doesn’t matter whether you’re trying to get up early or pick up and implement the Psychology of Human Misjudgment. Anything important happens pretty damn slowly.

From Potential to Useful

And why should it be otherwise? If you were to truly understand, in-depth, and apply the Psychology of Human Misjudgment to your dealings, you’d be way far out ahead of your peers and your former self. The advantage of understanding human nature is incredible. But it takes deep, repeated study and a long gestation period to get there. It takes applying the ideas to the world, feeling them out, forgetting them, re-doubling yourself, and trying again. Not giving up when you forget or fail. It is through the process of refinement that one learns new habits and ideas.

The visual mental model I like for self-improvement is imagining something like a Lathe.

A lathe, for the non-engineer, is a tool that molds a piece of material into some shapely form. A machinist would use a lathe to take a hunk of metal and turn it into a usable engine part, for example. The lathe takes something with potentialand shapes it into something useful by slowly refining it and shaving away the excess.

Compounding works in other areas besides money.

The way I think about it, if I can get 5% wiser and better every year, then I will be about twice as wise as I am now in less than 15 years. (Go ahead, grab your calculators.) In less than 30 years, my return will be 4x. This is how the non-gifted among us can surpass otherwise more intelligent people.

Small Improvements, Massive Results

Before you go off trying to figure out how one can measure such an unmeasurable thing as wisdom or usefulness, or whatever it is we’re really aiming at in the self-improvement game, let me be clear that the numbers don’t matter so much as the concept: Small improvements add up to massivedifferences. Compounding works in other areas besides money. And we want to compound worldly wisdom.

These little mental tricks like the Lathe and the idea of 5% yearly improvement are just ways to remind myself that I’m not going to wake up wiser/nicer/healthier/smarter tomorrow morning or the morning after. And just as importantly, if I backslide on a goal I’ve set or I forget something I thought I’d learned well, that it’s really not the end of the world. I don’t need to give up and call it hopeless. All I have to do is figure out where I slipped, re-double my efforts, and go after it again. All I need is 5% a year to become 4x better in my adult lifetime.

The truth is that whatever bad habits you have or whatever things you’re struggling to learn, there’s probably a good reason. Your biology and your experiences to date have set you in stone to a certain extent, and the older you are, the more likely that is to be true. The chains of habit are too light to be felt until they are too heavy to be broken. Billion-dollar industries have been built on convincing you that it’s easy to make big changes or to get a lot wiser and better. But it honestly isn’t. It’s hard work.

Yet any study of great individuals reveals that the work is worth doing.

So just imagine if you could make slightly better decisions every year. Whether it’s 5% better consideration of all of your decisions, or making 5% of your decisions differently, or some permutation thereof, it doesn’t really matter. Every year you’ll look back at some part of your old self and wonder how you could’ve been so dumb. And one day, in less than 30 years, you’ll look back and see your old self as almost unrecognizably stupid.

What more could you ask for?

Understanding your Circle of Competence: How Warren Buffett Avoids Problems

Tagged: Charlie Munger, Circle of Competence, Mental Model, Warren Buffett

(c)2018 Farnam Street Media Inc. May not be used without permission.

Understanding your circle of competence helps you avoid problems, identify opportunities for improvement, and learn from others.

The concept of the Circle of Competence has been used over the years by Warren Buffett as a way to focus investors on only operating in areas they knew best. The bones of the concept appear in his 1996 Shareholder Letter:

What an investor needs is the ability to correctly evaluate selected businesses. Note that word “selected”: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.

Circle Of Competence

Circle of Competence is simple: Each of us, through experience or study, has built up useful knowledge on certain areas of the world. Some areas are understood by most of us, while some areas require a lot more specialty to evaluate.

For example, most of us have a basic understanding of the economics of a restaurant: You rent or buy space, spend money to outfit the place and then hire employees to seat, serve, cook, and clean. (And, if you don’t want to do it yourself, manage.)

From there, it’s a matter of generating enough traffic and setting the appropriate prices to generate a profit on the food and drinks you serve—after all of your operating expenses have been paid. Though the cuisine, atmosphere, and price points will vary by restaurant, they all have to follow the same economic formula.

That basic knowledge, along with some understanding of accounting and a little bit of study, would enable one to evaluate and invest in any number of restaurants and restaurant chains, public or private. It’s not all that complicated.

However, can most of us say we understand the workings of a microchip company or a biotech drug company at the same level? Perhaps not.

“I’m no genius. I’m smart in spots—but I stay around those spots.”

— Tom Watson Sr., Founder of IBM

But as Buffett so eloquently put it, we do not necessarily need to understand these more esoteric areas to invest capital. Far more important is to honestly define what we do know and stick to those areas. Our circle of competence can be widened, but only slowly and over time. Mistakes are most often made when straying from this discipline.

Circle of Competence applies outside of investing.

Buffett describes the circle of competence of one of his business managers, a Russian immigrant with poor English who built the largest furniture store in Nebraska:

I couldn’t have given her $200 million worth of Berkshire Hathaway stock when I bought the business because she doesn’t understand stock. She understands cash. She understands furniture. She understands real estate. She doesn’t understand stocks, so she doesn’t have anything to do with them. If you deal with Mrs. B in what I would call her circle of competence… She is going to buy 5,000 end tables this afternoon (if the price is right). She is going to buy 20 different carpets in odd lots, and everything else like that [snaps fingers] because she understands carpet. She wouldn’t buy 100 shares of General Motors if it was at 50 cents a share.

It did not hurt Mrs. B to have such a narrow area of competence. In fact, one could argue the opposite. Her rigid devotion to that area allowed her to focus. Only with that focus could she have overcome her handicaps to achieve such extreme success.

In fact, Charlie Munger takes this concept outside of business altogether and into the realm of life in general. The essential question he sought to answer: Where should we devote our limited time in life, to achieve the most success? Charlie’s simple prescription:

You have to figure out what your own aptitudes are. If you play games where other people have the aptitudes and you don’t, you’re going to lose. And that’s as close to certain as any prediction that you can make. You have to figure out where you’ve got an edge. And you’ve got to play within your own circle of competence.

If you want to be the best tennis player in the world, you may start out trying and soon find out that it’s hopeless—that other people blow right by you. However, if you want to become the best plumbing contractor in Bemidji, that is probably doable by two-thirds of you. It takes a will. It takes the intelligence. But after a while, you’d gradually know all about the plumbing business in Bemidji and master the art. That is an attainable objective, given enough discipline. And people who could never win a chess tournament or stand in center court in a respectable tennis tournament can rise quite high in life by slowly developing a circle of competence—which results partly from what they were born with and partly from what they slowly develop through work.

So, the simple takeaway here is clear. If you want to improve your odds of success in life and business, then define the perimeter of your circle of competence, and operate inside. Over time, work to expand that circle but never fool yourself about where it stands today, and never be afraid to say “I don’t know.”

【一天聽一點 #690】時間不夠用，是因為你沒掌握這二個重點

自從我們「一天聽一點」的頻道成立以來喔，就受到很多終身學習者的喜歡，因此呢，我也經常收到很多朋友的提問。 而最多人問到的問題就是～「我真的好想要學習，但實在沒有時間，那我該怎麼辦呢？」 事實上喔，在我的學員裡，就有很多人也有這樣的困擾，所以我有很多例子能跟你分享。 只是在我幫你拆解「時間不夠用」這個議題之前，我必須先提醒你，在這個資訊爆炸、科技快速發展的時代，能夠吸引注意力的人、事、物，本來就很多。 再加上我們日常的工作、生活，這些例行的事物，不斷主動或被動的，排進我們的行程表裡；於是喔，「時間的零碎化」就成了這個時代的必然產物。 只要你能夠認清「時間零碎化」，那是一定會發生的，那麼我們來面對「時間不夠用」的問題，才能夠找到恰當的解方。 那你一定很想知道，在時間零碎化的前提底下，到底我們可以怎麼做，讓時間足夠你使用，甚至於保持學習的習慣？ 舉個例子來說，我有一個學員，他工作在台北，但為了擁有自己的家，所以選擇在桃園買房子。 雖然每天喔，要花二個小時在通勤上面，但仍然可以利用在火車、客運上面的時間，收聽我們的內容；甚至於加入「啟點線上學苑」的課程，來保持學習。 我還有一個學員，因為結了婚、生了孩子、當了媽媽之後喔，她選擇留職停薪，全心全意的在家裡照顧自己的孩子。 但她很清楚知道，自己兩年之後是要重返職場的，所以喔，格外重視持續學習的重要。 只是我們都知道，新生兒喔，每隔二、三個小時就要喝奶啊、換尿布啊、要陪伴啊，而且喔專心照顧孩子的母親，其實是很辛苦的。 所以呢，我這位女性學員她也需要休息，於是喔她的學習時間變得更破碎，不過很讓人感動的是，她還是能夠趁孩子睡著的空檔，抓緊零碎時間來幫自己進修。 你聽到這裡會不會很好奇，我們從小學讀到大學，不都是一堂課四、五十分鐘，甚至於九十分鐘不間斷。 而且呢，還常聽大人說這樣的話：「讀書啊！就是要能夠長時間的沉下心，才能夠讀得進去」；再不然就是「寫功課要一股作氣，不然很容易分心」。 所以按照道理來說，「零碎時間」只會讓人一直受到打擾，沒有辦法集中注意力；運用「零碎時間」真的能夠達成學習的效果嗎？ 當然可以喔！只要你能夠掌握，接下來要跟你分享的這兩個方法。 第一個部分，就是「你要學會心智的換檔」；而第二個部分就是「你要知道自己要什麼」。 先說第一個「學會換檔」。 我要先澄清喔，這裡的換檔喔，不是要讓大家去開車，然後呢，操作車上的排檔桿，那個一般所說的手排或自排的「換檔」，不是這個喔！ 我在這裡要說的是在心智上面，「專注模式」跟「發散模式」的換檔。 先簡單的說明一下，所謂的「專注模式」，在概念上是指在某段時間裡面，你可以專心一意的只做一件事。比如說，專心工作或者是全心投入學習，這種需要高度專注力的事情。 而所謂的「發散模式」，則是相對比較放鬆的狀態。像是散步啊、泡澡啊…這一類的活動。 而「換檔」就像是在你的精神或者是意念上，幫自己裝一個關開，按一下開關，你就能夠在「發散模式」跟「專注模式」之間，自由的切換。 這就像是我那位需要通勤上下班的學員，每當他下班走出公司，一直到前往火車站的這個途中，就是他處在「發散模式」。 等到他搭上火車，閉目養神五分鐘之後，他就會戴上耳機，並且把自己切換到「專注的模式」，一心一意的去投入線上課程的學習。於是呢，在他到家之前，他就能夠有所學習跟前進。 再例如喔，我那位全職媽媽的學員，她可能呢在孩子睡著的時候，她進入專注的模式，認真的學習。 而當她聽見孩子有動靜，需要她先去關注孩子的時候，她也能夠幫自己換檔，幫自己調整到相對放鬆的「發散模式」，去照顧、擁抱她的孩子。 或許喔，你會覺得這樣子一直切換，是很傷神的；就像是電器用品，每一次的開關，都是最耗電的時候。 確實，對一般人的情緒來說，最難擺脫的就是上一件事情，對於下一件事情的影響，常常會一直蔓延下去的。 但事實上，有點人生歷練你就會知道喔，能夠讓情緒適時的做切換，相互不干擾，該照顧小孩就照顧小孩，該處理事情就處理事情；這其實是一個很珍貴的能力。 因此呢，能夠真正聰明使用時間的人，必定都是「專注模式」和「發散模式」的換檔高手。 而且喔，以正式的科學研究來說，一個人最有效的專注力時間，只有十五到二十分鐘而已。 同時喔，還有研究發現，要是人長時間維持同一個姿勢都不動，像是一直坐著；其實是很容易讓腦袋產生疲倦感，反而容易發散、沒有辦法專心。 所以，因為這樣的研究結果，我們回頭想一想，是不是就很容易理解，大部份的學生為什麼在課堂上，都容易出神啊、分心啊！ 因為上課時間的設計，根本不符合我們大腦運作的特性啊！也就是說，現代生活的節奏很快、訊息量很大，注意力喔太容易分散。 但如果懂得順暢的換檔，適時的在專注跟發散，這兩個模式當中切換；你就能夠整合零碎的時間，讓你更有效的完成目標。 這個部分的操作，在我的線上課程【時間駕訓班】裡，會更具體的告訴你，如何啟動「專注模式」和「發散模式」；還有怎麼樣適時的切換，才是對你最有幫助的。 不過呢，我也很清楚，對於學習「換檔」的初學者來說，相對困難的是啟動「專注模式」。 因此呢，我在這裡分享一個小秘訣喔，先教大家用最省力的方法，來啟動「專注模式」。那就是～「Next Action」，找到最簡單的下一步動作。 就像我前面提到的那兩位學員，無論他們在前一刻是在忙小孩，還是在忙工作，只要他們手上的事情告了一個段落，想進入學習的「專注模式」。 但是卻發現心還是靜不下來，那麼最不費力的小入口，就是輕輕的告訴自己「我只要聽裘老師說一分鐘」；甚至於告訴自己「我只要聽裘老師說一句話」就好。 像這種最簡單的「Next Action」下一步動作，它一旦啟動，你就會很容易不知不覺的，進入「專注模式」。 然而呢，有效的利用時間的最根本的關鍵，是我們在使用時間之前，要先「知道自己要的是什麼」？ 這就像是一個不開心的人，如果他知道自己最想做的是「溜滑梯」，於是呢他花時間找到了遊樂場；因為玩耍而感覺到開心，這個結果會是他想要的，所以他花的時間就會有價值。 但如果另外一個不開心的人，他在不知道自己要的是什麼的情況下，到處亂逛；走了大半天找到了廚房，才發現食物不是他要的，他還是一樣不開心啊！ 那麼對他來說，花了大半天的時間，沒有滿足自己的需要，自然就會覺得浪費時間。 所以呢，沒有先釐清自己要的是什麼，這才是現代人常常覺得「時間不夠用」的主要原因。 我也常常說喔，當一個人不知道自己要的是什麼的時候，你給他任何東西，他都不會滿意。因為他根本不知道自己要的是什麼！這是一種讓別人跟自己，都很挫折的狀態。 所以我們繼續往下看，在這個世紀初的矽谷傳奇～賈伯斯，他就曾經說過：「有時候我們決定不做的事情，會比我們決定要做的事情，來得更重要！」 時間不夠用，不是你沒有時間，而是你做了太多不需要、也不想要的事。 我想喔，無論在任何工作、生活上面的圓滿，你都必須先釐清「什麼是真心重要的關鍵？」。 你才不會把心力，浪費在不必要的地方上面，增加了自己身體的疲勞，最終還沒有創造出任何你想要的結果，白白浪費了寶貴的時間。 市面上有很多教人「效率管理」的書籍，都會要你買一本美美的行事曆，下載一個時間管理的APP，再設定兩三個鬧鐘。 但事實上，你有先釐清自己要的是什麼嗎？或者是等你忙完了這一圈，啊都已經累了，然而一切還停留在原地，徒增挫折感呢？ 所以只有具備心智的「換檔」能力，再加上過程當中，不段的釐清「自己要的是什麼？」 這樣子你的意志力，才不會被錯誤的使用，否則喔，你的努力可能是餵養了「拖延」這一隻怪獸。 因為有時候我們會對生活無力，不是因為忙不過來、時間不夠用，而是你一直沒有專注在，你真正想做的事情上面。 在【時間駕訓班】我們的「第六講」內容當中，我一直提醒大家，「效率」是你使用時間方式的總和。 因此呢，我也很負責的花一整個段落的內容來告訴你，怎麼樣找出你的時間花在哪裡，並且讓你懂得該怎麼樣正確的使用時間。 同時呢，讓你對自己使用時間的模式，有更完整的認識，知道自己很容易在哪些事情上面，糾結或拖延；哪些事情可以很快的完成，該如何一一的去改善它們？ 假如你還沒有參與【時間駕訓班】的學習，歡迎你加入我們的學習行列。但是如果你已經是【時間駕訓班】的成員，你的課程聽到了第幾講呢？ 有任何的學習心得，都迎歡你在影片的下方留言告訴我。 啟點線上學苑的課程，都是每一個老師在生命裡，淬煉出的實用精華；並且用心的打磨，所以每個章節都有寶藏等著你去發現。 只要有任何的零碎時間，這都你最好的學習機會。這也是「啟點」推出線上課程的初衷，我們樂於為終身學習者，創造更方便的學習環境，歡迎你的加入。 無論是「一天聽一點」還是線上課程，都希望能帶給你一些啟發與幫助，我是凱宇。 如果你喜歡我製作的內容，請在影片裡按個喜歡，並且訂閱我們的頻道。別忘了訂閱旁邊的小鈴鐺，按下去；這樣子你就不會錯過我們所製作的內容。 然而如果你對於啟點文化的商品，或課程有興趣的話；我們近期的實體課程，是在12月7號開課的【寫作小學堂】。 我想很多人喔，在生命當中都有一個夢想，而這些夢想當中，有很大的一部分，可能喔都跟「創作」，而「創作」又可能跟「書寫」有關。 那不管你想要透過書寫，完成人生的什麼部分，對多數人來說，你並沒有想要成為作家，你可能只是想要透過「書寫」來圓滿自己、整理自己。 如果有機會能夠讓自己寫的東西，正確的傳達自己的想法跟信念，甚至於能夠影響一些朋友，那這會是很多人的一個期待。 【寫作小學堂】的設計初衷，就是以這個為出發點，不管你會不會成為文字工作者；甚至於你只是希望透過書寫，成為你生命當中最好的朋友。這一門課，都會回到文字跟書寫的本質。讓你透過這個途徑，更靠近你自己。 所以12月7號的【寫作小學堂】，在我錄影的這個時候，我們的名額已經到倒數了喔！ 期盼你能夠把握這難得的機會，這也是我們今年，最後一期的【寫作小學堂】課程；期待你的加入，謝謝你的收看，我們再會。