Money & WorkMental model

Don't trust advice from someone who loses nothing if wrong.

Skin in the game means whoever decides bears the consequences. Babylon's Code of Hammurabi had builders executed if their house collapsed and killed the occupant. Nassim Taleb turned the principle into a filter: analysts, consultants and pundits who can be wrong without paying systematically produce worse judgements than people with their own stake.

Useful: Ask of every recommendation: what happens to this person if they're wrong?

Source: en.wikipedia.org

Denkmodell Entscheidung Risiko

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