Wisdom

Choose Your Role Models Carefully

November 17, 2017 By Nagesh Belludi Leave a Comment

Heroes and role models are very useful—they embody a higher plateau of cognitive and emotional truth, knowledge, and accomplishment that you can aspire to.

But the modern world has a dangerous problem with hero-worship: pop artists, rappers, film stars, sportspersons, capitalists, and so on command attention and affection as never before. This 2013 Financial Times article noted, “Way back in 2008, the three most admired personalities in sport were probably Tiger Woods, Lance Armstrong and Oscar Pistorius. They were portrayed not just as great athletes but as great men, role models….” And all these three popular heroes fell from grace.

While admiring and drawing wisdom, meaning, and inspiration from heroes can be constructive, you must take “hero narratives” with a grain of salt. The Buddha warned us not to trust anybody or anything just because it seems logical or it resonates with our feelings. He advised that we test our hypotheses by the results they yield when put into practice and shield our minds against the risk of biases or other limitations of our ability to discern from our experiences wisely. According to the Kalama Sutta, an aphorism of the historical Buddha that has been preserved orally by his followers (translated from the Pali by the eminent American Buddhist monk and prolific author Thanissaro Bhikkhu,)

Now, Kalamas, don’t go by reports, by legends, by traditions, by scripture, by logical conjecture, by inference, by analogies, by agreement through pondering views, by probability, or by the thought, ‘This contemplative is our teacher.’ When you know for yourselves that, ‘These qualities are skillful; these qualities are blameless; these qualities are praised by the wise; these qualities, when adopted & carried out, lead to welfare & to happiness’—then you should enter & remain in them.

Idea for Impact: Don’t blindly place much faith in today’s experts and celebrities. Realize the truth yourself.

Expressive Writing Can Help You Heal

November 8, 2017 By Nagesh Belludi Leave a Comment

Give sorrow words;
the grief that does not speak;
whispers the o’er-fraught heart
and bids it break.
—William Shakespeare, Macbeth (Act 4, Scene 3)

Confronting Upsetting Experiences: Expressive Writing for Healing

People often block out thoughts that provoke negative emotions as a way of reducing their stress and regulating their moods. However, intentional suppression of deep-seated emotions not only increases susceptibility to illness, but also amplifies the emotionality and associated psychological effects of the suppressed thoughts.

Discussing, venting, clarifying, or expressing a trauma is a natural human response. When this necessity is inhibited, emotional stress and physical illness ensue.

Facing up to deeply personal issues can promote physical health, well-being, and beneficial behaviors.

The scientific research on the benefits of putting negative experiences into words is extensive. Studies have shown that expressive writing about oneself and one’s traumatic or stressful experiences does produce significant health benefits. Expressive writing helps ameliorate mood disorders, reduces symptoms among patients with serious illness, improve a person’s physical condition after a heart attack, and even enhance memory.

Writing about Emotional Topics Brings About Improved Physical and Emotional Wellbeing

James Pennebaker, a psychology professor at the University of Texas at Austin, first investigated expressive writing as a healing process in the 1980s. Since then, research that spawned from Pennebaker’s pioneering studies, has revealed benefits could accrue to those who were dealing with divorces, lost love, death of loved ones, job rejections, terminal illness, even college students struggling with first-year transitions.

Here are the main points about the expressive writing method:

Choose the part of the day when you are most contemplative (that’s the morning for most people.) Sit down at a place where you are not likely to be disturbed.
Reflect about a very personal and important event. Consider a significant emotional upheaval that influences your life the most or has in the past. Your topic can be about a distress or failure, lost love, health-, school- or career-related anxiety, relationships, inner conflicts, death of a loved one, or just about any topic that you would like to express.
If you’re writing about an experience or an event that involves another person, it can help to organize your writing as a letter to that person, whether alive or dead.
Write your deepest thoughts about your chosen event or experience continuously for 20 minutes. If you run out of things to write or reach a mental block, just repeat or recap what you have previously written.
In your writing, deeply explore your thoughts about the event and describe its effect on you. In other words, write both about what happened and how you feel about it. Think about how you can handle these events and their consequences now—what you can do specifically.
Connect your personal experiences to other parts of your life. How do they relate to your childhood, your parents, people you love, who you are, or who you want to be?
Write for yourself as your thoughts arise. Be as direct, intense, and serious as possible. Do not worry about grammar, spelling, comprehensiveness, legibility, or structure. On the opening day of writing, your stories are not very structured, but over the three or four days, you will develop a more structured narrative.
After writing for 20 minutes, do not look back over. Simply fold the papers you used, seal them, and put them away (read more about the “worry box technique.”) Unlike psychotherapy, the expressive writing technique does not employ feedback to the participant.
Make a mental note of how you feel. It is not unusual to feel sad or disheartened after writing—these feelings usually fade away in an hour or so. In research experiments, many participants have reported crying or getting upset by the experience of writing about emotional upheavals, but most participants testify that the writing experience was meaningful in helping them organize their experiences.
Repeat this exercise for four consecutive days. You can write about the same experience on all four days or about different experiences each day. If you choose to write about the same topic on all the four days, try to wrap everything up by the fourth day.

Note that expressive writing is distinct from keeping a daily journal in that it allows people to step back for a moment and evaluate their lives. Pennebaker once said, “I’m not even convinced that people should write about a horrible event for more than a couple of weeks. You risk getting into a sort of navel gazing or cycle of self-pity. … But standing back every now and then and evaluating where you are in life is really important.”

Translating an Emotional Experience Into Language Makes the Experience Graspable: it Can Help You Find New Meaning in Life’s Ordeals

New research has shown that expressive writing—followed by expressive rewriting—can improve happiness and lead to behavioral changes. Narrative storytelling of an unpleasant and chaotic experience may make the experience and its effects more controllable. For instance, according this New York Times article,

At the Johnson & Johnson Human Performance Institute, life coaches ask clients to identify their goals, then to write about why they haven’t achieved those goals. Once the clients have written their old stories, they are asked to reflect on them and edit the narratives to come up with a new, more honest assessment. While the institute doesn’t have long-term data, the intervention has produced strong anecdotal results.

Idea for Impact: Expressive Writing Can Help Change the Way You Feel About Traumatic Events and About Yourself

Expressive writing is a method of self-help that supplements the value of therapeutic talking to someone accepting and non-judgmental.

By exploring your deepest thoughts and feelings with a reflective, inquiring, honest attitude, you can shift perspective. Standing back and reflecting on your suffering from different points of view can bring about an improved emotional state. You can create your greatest opportunities for change by confronting the realities, reframing your experiences in terms of your values and priorities, and identifying impediments that stand in the way of purpose, joy, and contentment.

For more on the means and methods of expressive writing, as well its many confirmed physiological and behavioral benefits, read James Pennebaker’s Opening Up: the Healing Power of Expressing Emotion (1997) and Louise DeSalvo’s Writing as a Way of Healing (1999)

How People Defend Themselves in a Crisis

November 6, 2017 By Nagesh Belludi Leave a Comment

How People Defend Themselves in a Crisis The desire to protect and enhance one’s self-image is among the strongest motives of human behavior. No wonder scientific literature is laden with discussions on the ways in which people invoke self-deception in the interest of maintaining a favorable sense of their selves.

People have a propensity to avoid conscious awareness of fear-triggering worries, conflicts, and uncertainties. They engage in thought patterns that distort the external realities as a way of coping with distress.

Psychologists use the term “ego defense mechanisms” to describe the pattern of thought and behavior that arises in response to the perception of psychical danger.

Defense Mechanisms Play an Important Role in Self-Preservation

Sigmund Freud (1856–1939) wrote in The Ego and the Id (1923,) “We have come upon something in the ego itself which is also unconscious, which behaves exactly like the repressed—that is, which produces powerful effects without itself being conscious and which requires special work before it can be made conscious.” Freud’s daughter, Anna Freud (1895–1982,) and other psychologists identified twelve primary defense mechanisms:

Denial: explicitly refusing to acknowledge the threatening reality even when presented with indisputable data (e.g. someone with a terminal illness rejecting the imminence of his death.) Denial may give the respondent some time to evaluate the meaning and seriousness of the threatening reality before reacting to it.
Disavowal: acknowledging the threatening reality but downplaying its significance
Suppression: intentionally engaging distractions to eliminate from consciousness any thoughts of the threatening reality
Fixation: committing inflexibly to one specific mind-set or course of action
Substitution: replacing an unattainable or unacceptable instinctual object or emotion with one that is more accessible or tolerable
Displacement / Transference: redirecting emotions from their original object to a substitute object that is somehow associated with the original one.
Compensation: making amends for a perceived deficiency that cannot be eliminated (e.g., a physical defect) by excelling in some other way.
Grandiosity: exaggerated feeling of power or influence over the threatening reality
Idealization: ascribing power or influence to an existent or imaginary “savior” (an individual or a organization)
Intellectualization: thoroughly rationalizing a particular thought or action, by means of a misleading, but self-serving justification
Projection: incorrectly attributing to others any objectionable thoughts or actions. According to Sigmund Freud, projection makes a person perceive his objectionable character traits in others as a means of avoiding seeing those very faults in himself. For example, a man who cannot accept his own anger may cope with his feelings by accusing others as angry.
Splitting: fragmenting, isolating, and focusing on only certain elements of the threatening reality, instead of considering the complexity brought about by the crisis as a coherent whole

Idea for Impact: It pays to familiarize yourself with these twelve defense mechanisms and be able to identify them in how you (and others) react to emotionally charged situations, especially in close relationships. Defense mechanisms are natural forms of self-protection. However, used excessively, they can turn out to be pathological.

Reference: Cheryl Travers, “Handling the Stress” in Michael Bland (Ed.) Communicating out of a Crisis (1998)

Realize the Truth Yourself

October 13, 2017 By Nagesh Belludi Leave a Comment

So much of what you’ll hear and what you’re taught may turn out to be incorrect on closer scrutiny.

Whether it’s advice from the experts, what you hear in the media, or what your mother told you, if it is of any consequence, take the time to work out for yourself whether it is factual.

The great Hindu spiritual leader Swami Vivekananda (1863–1902) once instructed, “Do not believe in a thing because you have read about it in a book. Do not believe in a thing because another man has said it was true. Do not believe in words because they are hallowed by tradition. Find out the truth for yourself. Reason it out. That is realization.”

Idea for Impact: It’s not sensible to believe any assertion unless you have good reason for doing so. If you care whether your beliefs about the world are reliable, you must establish them on the sound, relevant evidence. Until you can organize that evidence and determine whether a belief is true or isn’t, you must suspend your judgment. The celebrated British mathematician, logician, and political activist Bertrand Russell (1872–1970) wrote in Why Men Fight: A Method of Abolishing the International Duel (1917,)

Men fear thought as they fear nothing else on earth—more than ruin, more even than death. Thought is subversive and revolutionary, destructive and terrible; thought is merciless to privilege, established institutions, and comfortable habits; thought is anarchic and lawless, indifferent to authority, careless of the well-tried wisdom of the ages. Thought looks into the pit of hell and is not afraid.

The Power of Counterintuitive Thinking

September 15, 2017 By Nagesh Belludi Leave a Comment

“The All-embracing quality of the great virtue follows alone from the Tao … Only with Tao can follow the right path,” wrote Laozi in Tao Te Ching.

Translated roughly as “the way of integrity,” the Tao Te Ching is mostly a work of maxims of varying length; but it frequently quotes traditional poems, songs, and hymns.

While the normative meaning of the word ‘Tao’ is just “path” or “way,” the text’s dominant theme is the spirit or quality of mind one needs to cultivate.

Here’s a verse from Tao Te Ching that advocates the power of counterintuitive thinking:

A good soldier is never aggressive;
A good fighter is never angry.

The best way of conquering an enemy
Is to win him over by not antagonizing him.

The best way of employing a man
Is to serve under him.

This is called the virtue of non-striving!
This is called using the abilities of men!
This is called being wedded to Heaven as of old!

Smart Folks are Most Susceptible to Overanalyzing and Overthinking

August 30, 2017 By Nagesh Belludi 8 Comments

Many High-IQ People Tend to Be Overthinkers: They Incessantly Overanalyze Everything

There’s this old Zen parable that relates how over-analysis is a common attribute of intelligent people.

A Zen master was resting with his quick-witted disciple. At one point, the master took a melon out of his bag and cut it in half for the two of them to eat.

In the middle of the meal, the enthusiastic disciple said, “My wise teacher, I know everything you do has a meaning. Sharing this melon with me may be a sign that you have something to teach me.”

The master continued eating in silence.

“I understand the mysterious question in your silence,” insisted the student. “I think it is this: the excellent taste of this melon that I am experiencing … is the taste on the melon or on my tongue …”

The master still said nothing. The disciple got a bit frustrated at his master’s apparent indifference.

The disciple continued, ” … and like everything in life, this too has meaning. I think I’m closer to the answer; the pleasure of the taste is an act of love and interdependence between the two, because without the melon there wouldn’t be an object of pleasure and without pleasure …”

“Enough!” exclaimed the master. “The biggest fools are those who consider themselves the most intelligent and seek an interpretation for everything! The melon is good; please let this be enough. Let me eat it in peace!”

Intelligence Can Sometimes Be a Curse

The tendency to reason and analyze is a part of human nature. It is a useful trait for discerning the many complexities of life. It’s only natural that you could go overboard some times and over-analyze a point or an issue to such a degree that the objective becomes all but moot.

Don’t get me wrong. Intelligence is indeed a gift. But intelligence can trick you into thinking you should be overthinking and calculating everything you do. The more intelligent you are, the more investigative you will be. The more your brain analyzes people and events, the more time it will spend on finding flaws in everything.

Intelligent People Overanalyze Everything, Even When it Doesn’t Matter

Many intelligent people tend to be perfectionists. Their overanalysis often cripples their productivity, especially by leading them to undesirable, frustrating, and low-probability conclusions that can limit their ability to understand reality and take meaningful risks.

Intelligent people are too hard on themselves and others—family, friends, and co-workers. They can’t settle for anything less than perfect. They tend to be less satisfied with their achievements, their relationships, and practically everything that has a place in their life. What is more, many people with speculative minds hold idealistic views of the world and lack a sound acumen about coping with the practical world.

Idea for Impact: Don’t Make Everything Seem Worse Than it Actually is!

Thinking too much about things isn’t just a nuisance for you and others around you; it can take a toll on your well-being and on your relationships.

Check your tendency to overthink and overanalyze everything. Don’t twist and turn every issue in your head until you’ve envisaged the issue from all perspectives.

Sometimes it does help to overthink and be cautious about potential risks and downfalls. But most times, it’s unnecessary to ruminate excessively. Don’t make everything seem worse than it actually is. Set limits and prioritize. Learn to let go and manage your expectations.

To avoid overthinking, use my 5-5-5 technique. Ask yourself if your decision will matter 5 weeks, 5 months, and 5 years in the future. If your answer is ‘no,’stop stressing yourself out!

Anger is the Hardest of the Negative Emotions to Subdue

August 18, 2017 By Nagesh Belludi Leave a Comment

The Lekha Sutta, an aphorism of the historical Buddha that has been preserved orally by his followers, identifies three distinct ways that anger manifests in individuals:

Firstly, the Buddha refers to the individual who is like an inscription on a rock. His anger stays with him for a long time; it does not war away by wind or water.
Secondly, the Buddha relates an individual who is habitually angered, but whose anger does not stay with him for a elongated time, to an inscription in soil that rubs away by wind or water.
Finally, the Buddha identifies an individual who is like water. When he is spoken to or treated rudely, he stays impervious, pleasant, and courteous—in the vein of an inscription in water that disappears right away.

Here’s a translation of the Lekha Sutta from the Pali by the eminent American Buddhist monk and prolific author Thanissaro Bhikkhu:

Monks, there are these three types of individuals to be found existing in the world. Which three? An individual like an inscription in rock, an individual like an inscription in soil, and an individual like an inscription in water.

And how is an individual like an inscription in rock? There is the case where a certain individual is often angered, and his anger stays with him a long time. Just as an inscription in rock is not quickly effaced by wind or water and lasts a long time, in the same way a certain individual is often angered, and his anger stays with him a long time. This is called an individual like an inscription in rock.

And how is an individual like an inscription in soil? There is the case where a certain individual is often angered, but his anger doesn’t stay with him a long time. Just as an inscription in soil is quickly effaced by wind or water and doesn’t last a long time, in the same way a certain individual is often angered, but his anger doesn’t stay with him a long time. This is called an individual like an inscription in soil.

And how is an individual like an inscription in water? There is the case where a certain individual—when spoken to roughly, spoken to harshly, spoken to in an unpleasing way—is nevertheless congenial, companionable, & courteous. Just as an inscription in water immediately disappears and doesn’t last a long time, in the same way a certain individual—when spoken to roughly, spoken to harshly, spoken to in an unpleasing way—is nevertheless congenial, companionable, & courteous. This is called an individual like an inscription in water.

These are the three types of individuals to be found existing in the world.

Idea for Impact: Learn to Corral Your Anger and Manage Your Emotions

Like everything else in the world, anger surfaces and passes away, restoring your previous sense of calm and stillness. Not identifying the nature of anger and allowing it to take over your state of being can lead to disastrous outcomes. Verse 222 of the Dhammapada (tr. Thanissaro Bhikkhu) states,

When anger arises,
whoever keeps firm control
as if with a racing chariot:
him
I call a master charioteer.
Anyone else,
a rein-holder—
that’s all.

Anger destroys careers. It destroys relationships. As long as you lack the capacity to withstand negative emotions such as anger, you will be at a marked disadvantage in life.

Group Polarization: Like-Mindedness is Dangerous, Especially with Social Media

August 15, 2017 By Nagesh Belludi Leave a Comment

Group Polarization Strengthens of the Opinions of Each Person in the Group

When people who share opinions and beliefs get together in groups, they tend to be even more persuaded in their beliefs—they become extreme in their views. In other words, a group of likeminded people will reinforce one another’s viewpoints. This phenomenon is called group polarization.

Social psychologists reason that people use the choices and persuasions of others as heuristics to steer their lives in this complex world. As the English philosopher and mathematician Alfred North Whitehead once said, “Civilization advances by extending the number of operations we can perform without thinking about them.”

Social Media and Group Polarization

As people converge to likeminded people in virtual neighborhoods, they tend to operate in intellectual bubbles. Given that social media allows participants to curate their sources of information, it is easier than ever before for people to cruise through their day-to-day lives without meeting anyone who disagrees with them. Studies have shown that hanging around a group of likeminded folks makes people more scornful of differing viewpoints, than they are as individuals.

Group polarization explains partly the proliferation of fake news on social media—people accept dubious claims that support their own viewpoint while disregarding facts that conflict with their views. In the confusing times we live in, people get lost in the unstructured, unattributed noise of headlines and repeat the loudest declarations as facts without checking their soundness.

In 1996, MIT scholars Marshall Van Alstyne and Erik Brynjolfsson forewarned of an impending dark side to the newly interconnected world:

Individuals empowered to screen out material that does not conform to their existing preferences may form virtual cliques, insulate themselves from opposing points of view, and reinforce their biases. Internet users can seek out interactions with like-minded individuals who have similar values, and thus become less likely to trust important decisions to people whose values differ from their own.

The Persuasive Ability of Social Proof in Consumer Behavior

In the bestselling Influence: The Psychology of Persuasion, psychologist Robert Cialdini observes that advertisers tend to describe their products as “fastest-growing,” “#1 in the market,” or “best-selling.” Advertisers believe that consumers need to hear not only that a product is good, but also that others think so.

As per group polarization, when people are considering what to do or buy, they often look to what others are doing or have done, and take their cue from others. When a product, service, or an idea strikes out as particularly admired or prevailing, consumers intuitively take social proof that this is the right—and acceptable—choice.

Idea for Impact: Hanging Around with Like-Minded People is a Dangerous Intellectual Trap

The French entomologist Jean-Henri Fabre once wrote, “Seek those who find your road agreeable, your personality and mind stimulating, your philosophy acceptable, and your experiences helpful. Let those who do not, seek their own kind.”

Look for people who respect your worldview—even if drastically different from theirs—but can present alternative perspectives.

Regular exposure to differing views serves to sharpen your thinking and reasoning abilities—and may perhaps even reexamine your positions. As I’ve said before, wisdom comes from facing counter-arguments. The only test of a well-constructed opinion is that it can defend itself.

Everything in Life Has an Opportunity Cost

August 8, 2017 By Nagesh Belludi 1 Comment

“Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.”
—Charlie Munger, Investor

Doing One Thing Makes You Sacrifice the Opportunity to Do Something Else of Value

In economics, opportunity cost is the cost of not choosing the next best alternative for your money, time, or some other resource.

One of the foundational principles in economics is affirmed by the popular American aphorism, “There ain’t no such thing as a free lunch.” Resources are scarce. When resources (time, money, mindshare, autonomy, and all that) are scarce, selecting one opportunity necessitates forgoing other opportunities.

Life is all about values and priorities. You face trade-offs. Life requires of you to make choices among mutually exclusive alternatives. Every time you select something, you forfeit other alternatives and the concomitant benefits. The cost of something is what you will give up to get it. This is opportunity cost.

You Can Do Anything but Not Everything … What Will You Sacrifice When You Choose One Option Over the Others?

When mulling over multiple choices, the quality of any option cannot be assessed in isolation from its alternatives. The price you pay (or the sacrifice you make, or the benefits you give up) for doing what you’ve chosen to do instead of doing something else is the opportunity cost.

In sum, an opportunity cost is the cost of passing up the opportunities that a different option would have afforded.

Many costs are calculated in terms of money. However, just because you don’t have to spend money to do something does not imply that the options you face are without their costs. For example, you don’t have to spend money to go for a hike or watch a sunset, but there is an opportunity cost there too. You could have used that time to do something else you value—visiting a friend or reading a book, perhaps.

If you decide to invest two years and some $100,000 getting an MBA at a brand-name business school, there’s an opportunity cost; it costs you lost wages and all the things you could have pursued during that time and with that money. But you anticipate that getting your MBA will pay off by way of a better job in a better company with a better salary.
If you spend your weeklong vacation taking your parents to a beach destination in Florida, there’s the opportunity cost of not going to Paris with your spouse.
If you decide to wake up twenty minutes earlier in the mornings to leave home sooner to work and beat the horrendous traffic, there’s the opportunity cost of twenty minutes of extra snoozing.
When the refrigerator at home breaks down and needs replacement, you will have to give up buying that latest big-screen TV you’ve been coveting.
There’s an opportunity cost to even reading this article at this moment. You could have been watching TV, taking a nap, calling up a friend, or moving on to another article in the time you’re devoting to reading this article.

In a nutshell, even decisions that appear to be no-brainers carry the hidden costs of the options you will decline. Thinking about opportunity costs may not change the decision you make, but it will give you a more rational assessment of the full implications of your decision.

Opportunity Costs Apply to All Your Choices—Big and Small

Opportunity cost is a concept of great magnitude. It is one of those apparently simple concepts in social sciences that are difficult to master and tough to put into consistent practice. Tim Harford, the British author of The Undercover Economist offers a particularly instructive example of appreciating opportunity costs in his Financial Times column:

Consider the following puzzle, a variant of which was set by Paul J Ferraro and Laura O Taylor to economists at a major academic conference back in 2005. Imagine that you have a free ticket (which you cannot resell) to see Radiohead performing. But, by a staggering coincidence, you could also go to see Lady Gaga—there are tickets on sale for £40. You’d be willing to pay £50 to see Lady Gaga on any given night, and her concert is the best alternative to seeing Radiohead. Assume there are no other costs of seeing either gig. What is the opportunity cost of seeing Radiohead? (a) £0, (b) £10, (c) £40 or (d) £50.

…

Answer: Going to see Lady Gaga would cost £40 but you’re willing to pay £50 any time to see her; therefore the net benefit of seeing Gaga is £10. If you use your free Radiohead ticket instead, you’re giving up that benefit, so the opportunity cost of seeing Radiohead is £10.

Charlie Munger’s Wisdom on Opportunity Cost

On the subject of making choices in life based on opportunity costs, Munger stated at a 2010 lecture at Harvard-Westlake preparatory school, “The right way to make decisions in practical life is based on your opportunity cost. When you get married, you have to choose the best spouse you can find that will have you. The rest of life is the same damn way.”
Explaining how Warren Buffett and Berkshire Hathaway use opportunity costs to make investment decisions, Munger detailed stated at the aforementioned Harvard-Westlake lecture, “Berkshire Hathaway is constantly kicking off ideas in about two seconds flat. We know we’ve got opportunity X, which is better than the new opportunity. Why do we want to waste two seconds thinking about the new opportunity? Many of you come from places that don’t do that. You’ve got to have one horse, one rabbit, one something or rather, and that rabbit is going to be thinking about something which would be ruled out immediately by an opportunity cost available generally to the place—but, it’s a different department. You have to be diversified and so on and so on. It’s easy to drift into this idea that opportunities don’t matter, you’ve got so many different ways of doing things that are better. It isn’t better.”
Putting the concept of opportunity cost into operation requires benchmarking any prospective decision to other available alternatives. At the 2006 Berkshire Hathaway annual meeting, Munger advised, “In the real world, you have to find something that you can understand that’s the best you have available. And once you’ve found the best thing, then you measure everything against that because it’s your opportunity cost. That’s the way small sums of money should be invested. And the trick, of course, is getting enough expertise that your opportunity cost—meaning your default option, which is still pretty good—is very high…. Most people aren’t going to find thousands of things that are equally good; they’re going to find a few things where one or two of them are way better than anything else they know. And the right way to think about investing is to act thinking about your best opportunity cost.”

Learn to Evaluate Life Choices Via the Lens of Opportunity Costs—The Stakes Become Clearer

You live in a world of scarcity and must therefore make choices. You cannot avoid regret since there are opportunity costs for every choice you will make.

Everything in life is about opportunity costs. Every time you say “yes” to a choice, you are also saying “no” to everything else you may have accomplished with your time, money, and resources.

Opportunity cost is a commanding tool that you should be wise to apply to all decision-making. If you integrate this concept into your thought process, you will not only make judicious choices, but also better understand the world in which you live.

Idea for Impact: Whether you’re choosing graduate school, mulling over switching careers, starting a business, investing your money, buying a car, or frittering away your evening watching TV, considering the value of forgone alternatives will help you make better choices. Make the lens of opportunity costs the underpinning of your decision-making processes.

Death Should Not Be Feared

July 21, 2017 By Nagesh Belludi Leave a Comment

The Flickering Flame of Consciousness Will Go Out One Day

A friend was recently racked with melancholy: in the last few weeks, five of his family members and friends were diagnosed with debilitating diseases or cancer. This followed the passing away of a dear friend earlier this year. Like everybody else, facing the decline and death of the near and dear compelled my friend to contemplate life and confront his own mortality.

Convention can bind us to the notion that death is frightful and should not be talked about. However, death needs to be discussed—and contemplated—all the time, not in terms of the fear of life but as a reminder of the brevity of life. The great English author Graham Greene (1904-91) wrote in the novel Travels With My Aunt (1972,)

You will think how every day you are getting a little closer to death. It will stand there as close as the bedroom wall. And you’ll become more and more afraid of the wall because nothing can prevent you coming nearer and nearer to it ever night while you try to sleep…

Death Should Not Be Feared; It’s an Essential Progression of Life

When we’re forced to confront death, we resist doing so. Death is a very natural phenomenon just like birth, and there’s no need to shy away from it. In his famous 2005 Stanford graduation address, Steve Jobs (1955-2011) addressed his pancreatic cancer and his brush with death:

No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

Bertrand Russell’s Evocative Reflection on Transience and Morality

The celebrated British mathematician, political activist, and philosopher Bertrand Russell (1872—1970) wrote a beautiful reflection on death and life in his essay “How To Grow Old.” The metaphors evoked by the way that Russell portrayed human existence “like a river” are overpowering.

The best way to overcome it [the fear of death]—so at least it seems to me—is to make your interests gradually wider and more impersonal, until bit by bit the walls of the ego recede, and your life becomes increasingly merged in the universal life. An individual human existence should be like a river: small at first, narrowly contained within its banks, and rushing passionately past rocks and over waterfalls. Gradually the river grows wider, the banks recede, the waters flow more quietly, and in the end, without any visible break, they become merged in the sea, and painlessly lose their individual being. The man who, in old age, can see his life in this way, will not suffer from the fear of death, since the things he cares for will continue. And if, with the decay of vitality, weariness increases, the thought of rest will not be unwelcome. I should wish to die while still at work, knowing that others will carry on what I can no longer do and content in the thought that what was possible has been done.

Idea for Impact: The Only Thing We Really Get to Influence About Death is the Course of Our Approach to Death

We may look at death and decline with fear instead of anticipation, but the alternative to death could truly be worse: boredom and stagnation.

Fortunately, though death and decline may be unavoidable, how we look at it is totally up to us.

Every brush with death and serious illness should remind you to accept the impermanence of health and life. It should help you appreciate and live each moment wisely. It should serve to remind you to cherish everything with you while you have them.

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