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Figure Out the Price
Scott Adams, the creator of the Dilbert comic strip, is credited with saying:
"One of the best pieces of advice I’ve ever heard goes something like this: If you want success, figure out the price, then pay it. It sounds trivial and obvious, but if you unpack the idea it has extraordinary power."
In investing, everyone wants to be successful. However, desire means nothing if awareness and acceptance of the price of success is not sharp.
A common bias is underestimating the cost of a very difficult task.
Success in any field of merit is very hard. In investing, one of the prices of success is holding onto, and even buying more when prices drop.
This last week was one of those drops, with some companies I own posting massive losses: Fastly -14%, Teladoc and Datadog at -18%, New Relic -23%, and Alteryx losing a full 30% of its value in one week (and virtually all of that in a single day!).
Days like yesterday help you understand the true price of success. The challenge is to continually align yourself with the price needed to pay, which is often far steeper than originally thought.
Being renewed and excited by the challenge is a leading indicator of eventual success in both investing and in life.
CXL
18 Cognitive Biases You Can Use for Conversion Optimization
Cognitive biases impact how we buy, think, convert, etc. Once you’re aware of them, you can begin to limit their impact on your visitors (and yourself).
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