This book is divided into three parts. The first part is Dario's personal experience, from which we can learn the background of those principles. The second part is Dario's life principle; The third part is the working principle of Dario. Besides, Dario himself.
Dario 1949 was born in a middle-class family in Long Island, USA. He didn't like doing housework since he was a child, but he was eager to make money. From the age of eight, he went out to sell newspapers, shovel snow, clean tables and wash dishes, which taught him many valuable experiences that he could not learn at school. Dario grew up thinking that greatness is better than bad, and bad is better than mediocrity, because bad can at least give life a taste.
197 1 In the spring of, Dario entered Harvard Business School for further study. After graduation, Dario joined Hilsen, a brokerage company, in charge of futures hedging. Dario's wildness was incompatible with Hilsen's, and he was soon fired by his boss. However, those customers wanted to continue to get Dario's advice, so Dario founded the Bridge Water Company at the age of 26 in 1975. In the following days, Dario devoted himself to studying the financial market, and the number of customers and employees gradually expanded.
The second part of the book is Dario's life principle, which can be summarized as "five steps to get the life you want".
The first part of the principle: "embrace reality and calmly deal with it" is summarized as the following three: the first one embraces reality and pursues dreams on the basis of accurate understanding of reality; Second, understand the operation of reality from top to bottom, and don't look at reality with your own prejudice; Third, evolution is a great achievement of life, and a person is happy only if he keeps evolving or growing. Dario said, get what you want from life. To sum up, Dario's suggestion is to ask yourself "What do you want" first, and then ask "What is the real situation?" Finally, ask yourself "What should I do about this"? If you can honestly ask and answer these questions, you will get what you want from life faster than if you don't!
The second part of the principle: keep extremely open-minded. Among them, the more important 10 principle:
1. Remember that achieving your goal is your key point, and don't always worry about face;
2. Don't judge each other until you really understand their point of view;
3. Remember that what you are looking for is the best answer, not the best answer that you can think of alone;
4. Ask people who are trustworthy but have different opinions. The so-called "trustworthy" here has a hard indicator, that is, this person has at least three successful experiences in related fields;
5. Record your wrong decision;
6. Always use "pain" as your guide. If you feel mentally uncomfortable when others challenge your point of view, especially when the pain is related to one of your own defects, it means that you may have made a mistake and need to openly re-examine the problem;
7. If many different trustworthy people say that you are wrong, but you can't see it yourself, then you have to assume that you are really biased;
8. Meditate. Dario has been practicing meditation for a long time. He thinks this habit really makes him open-minded, calm and creative. For the methods and principles, please listen to the tools of giants I talked about in February and stealing fire in April.
9. Use decision-making tools based on reliable evidence. For example, Dario uses machine learning tools to assist investment decisions, which we have introduced before.
10. Find a solid objective basis for your point of view and encourage others to do the same. Don't filter arguments according to your subconscious and desires, and cut your feet to fit your shoes.
The third part, how to make effective decisions, the following are the items mentioned in the article:
1. Harmful emotions are the biggest threat to your right decision. For example, we say that "impulse is the devil", and logic, reason and common sense are your best decision-making tools;
2. It is an important step to make the best decision by synthesizing the situation at hand and consulting the opinions of many reliable people at the same time, not trusting one of them and judging from the perspective of onlookers;
Don't be so precise, underestimate the importance, and don't demand perfection.
4. Reality exists at multiple levels, and each level will give you a different but valuable perspective. When you make a decision, it is necessary to consider different levels and learn to switch between them to find the level that best suits the relevant reality.
5. Knowing what to give up is as important as knowing when to bet; In other words, you have to hold your breath, reduce the frequency of your shots, and only bet when the success rate is high, which is emphasized by Buffett and Munger;
6. The best choice is that the advantages outweigh the disadvantages. Don't try to pursue a choice without any disadvantages.
7. Weigh and consider the value brought by more information and the loss caused by decision delay, and prioritize.
8. Don't mistake possibility for probability. Anything is possible, the key is probability.
The focus of this paper is the third part: working principle. The working principle is divided into three parts: establishing correct culture; Help everyone do the right thing; Build and improve your machine. Summarized as follows:
1. Make sure that your work is your passion and work with the people you like;
2. Organization is a machine composed of culture and people;
3. A great organization has both great people and great culture;
4. Great men have both excellent character and excellent ability;
5. Great culture can put problems and differences on the table and solve them properly, and is keen to create unprecedented great things;
6. Strict love is an effective means to get great jobs and great relationships;
7. In order to be great, one cannot compromise on uncompromising things;
8. A system dominated by excellent ideas based on credibility weighting is the best system to make effective decisions.