Michael Mauboussin — How Great Investors Make Decisions, Harnessing The Wisdom (vs. Madness) of Crowds, Lessons from Race Horses, and More (#659) - The Blog of Author Tim Ferriss

1/ Thread: The Wisdom of Crowd In 2007, @mjmauboussin wrote a paper on the wisdom of crowd, and showed with simple maths and experiments why the crowd can trump individuals. Some of the takeaways were VERY counterintuitive and it materially influenced my thinking.

Considering what motivates the decisions of others, especially when those decisions affect you, is also essential. Incentives matter. Take a negotiation course, because skilled negotiators are masters at figuring out what is important to the other party and arriving at mutually beneficial solutions. Even if you are not dealing directly with another

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I have been aiming to discuss taking action and being decisive in two essays because there seems to be a belief that 'rationality' and mental models are all you need to succeed. Most influential people make better decisions and use thinking tools that assist them in achieving their goals more quickly.