Core Decision Principles

1. Think in Terms of Leverage

Every decision should create asymmetric returns - small inputs with large potential outputs. Focus on systems, not just effort.

2. Compete Against a Benchmark

Instead of arbitrary goals, compete against a nemesis - an ever-evolving standard of excellence. This creates permanent motivation and clearer decision-making.

3. Optimize for Long-Term Compounding

Ask how each decision affects your 10-year, 20-year, and 30-year trajectory. Short-term sacrifices for long-term leverage compound dramatically.

4. Make Decisions Explicitly

Document your reasoning and criteria. This improves decision quality and makes future decisions faster and more consistent.

Decision-Making Framework

The Billionaire Filter

Before any financial choice, ask:

1. Positioning: How does this move me relative to my nemesis?
2. Acceleration: Does this increase my rate of wealth growth?
3. Leverage: Am I using systems, not just effort?

Opportunity Evaluation Matrix

• High Return, Low Risk: Obvious yes - do immediately
• High Return, High Risk: Deep dive analysis required
• Low Return, Low Risk: Automate or delegate
• Low Return, High Risk: Avoid completely

Decision Speed Framework

• Irreversible: Requires extensive analysis and consensus
• Significant Consequences: Needs careful consideration but has deadlines
• Easily Reversible: Decide quickly with bias toward action
• Trivial: Automate or establish rules

Key Decision Metrics

Decision Accuracy Rate

Correct decisions ÷ Total major decisions over past year

Goal Alignment Score

Choices aligned with aims ÷ Total decisions made

Learning Velocity

New skills/acquired knowledge ÷ Time invested

Compounding Leverage

Long-term value created ÷ Short-term effort invested

Cognitive Bias Mitigation

Common Financial Biases

• Loss Aversion: Fear of losses stronger than desire for gains
• Confirmation Bias: Seeking information that confirms existing beliefs
• Overconfidence: Overestimating your knowledge or abilities
• Anchoring: Relying too heavily on the first piece of information encountered
• Herd Mentality: Following the crowd rather than independent thinking

Bias Countermeasures

• Devil’s Advocate: Actively seek opposing viewpoints
• Decision Journal: Document reasoning and outcomes
• Time Delay: Sleep on major decisions when possible
• Peer Review: Get feedback from trusted advisors
• Scenario Planning: Consider multiple future possibilities

Implementation Strategy

Short Term (0-6 months)

• Start a decision journal documenting major choices
• Practice the billionaire filter before big decisions
• Identify and track your top 3 cognitive biases
• Establish decision-making rules for routine choices

Medium Term (6-18 months)

• Develop expertise in 1-2 key decision domains
• Build a network of trusted advisors in your focus areas
• Create decision templates for common scenarios
• Measure and track your decision accuracy rate

Long Term (18+ months)

• Become known for making consistently excellent decisions
• Mentor others in financial decision-making frameworks
• Develop proprietary decision-making methodologies
• Position as a thought leader in your specialization