The Power of Reading and a Scientific Approach to Decision Making

The Power of Reading and a Scientific Approach to Decision Making

Introduction:

Reading is a powerful tool for personal growth and development. As Charlie Munger said, "In my whole life, I have known no wise people who didn't read all the time." By reading, we have the opportunity to learn from the mistakes and successes of others, expanding our knowledge and understanding. In addition to reading, adopting a scientific approach to decision making can greatly improve our ability to make informed choices. In this article, we will explore the benefits of reading and how a scientific mindset can enhance our entrepreneurial endeavors.

The Benefits of Reading:

Reading allows us to tap into the collective wisdom of others. By delving into great books, articles, and essays, we can gain insights and knowledge that can shape our thinking and actions. It is not about the number of books we read, but rather the depth of understanding we gain from them. Skimming through books can help us filter out those that may not be worth our time, while dedicating ourselves to thoroughly reading the best ones can provide profound insights. The Levels of Reading, ranging from reading to entertain to reading to master, offer different approaches to engage with various types of content.

Reading for Absorption:

Reading speed may be a vanity metric, as what truly matters is what we absorb. It is not about rushing through books but rather about deeply understanding and internalizing the information presented. Sometimes, the opportunity cost of pursuing new readings is the loss of the chance to re-read the best book we've ever encountered. By revisiting these books, we can reinforce our understanding and apply their lessons to our lives. Taking notes and writing about what we read can also enhance our learning process, as it helps us connect new knowledge to our existing understanding and identify gaps in our comprehension.

The Scientific Approach to Decision Making:

Entrepreneurs who adopt a scientific approach to decision making tend to perform better and make more informed choices. A randomized control trial found that these entrepreneurs were more likely to pivot to a different idea, ensuring that they remained adaptable and open to change. By treating their startup endeavors as experiments and employing a hypothesis-driven mindset, they were able to reduce the likelihood of pursuing projects with false positive returns and increase the odds of pursuing projects with false negative returns. This approach fosters precision and allows entrepreneurs to make decisions based on evidence rather than mere intuition.

Actionable Advice:

• 1. Embrace a reading habit: Make reading a regular part of your life. Seek out books, articles, and essays that cover a broad range of subjects to expand your knowledge base.

• 2. Prioritize quality over quantity: Instead of focusing on reading as many books as possible, concentrate on thoroughly understanding and absorbing the content of the best books you encounter.

• 3. Adopt a scientific mindset: Treat your entrepreneurial endeavors as experiments. Formulate hypotheses, test them, and remain open to pivoting or changing course based on evidence. Avoid making decisions solely based on intuition.

Conclusion:

Reading and adopting a scientific approach to decision making are two powerful tools that can significantly enhance our personal and professional lives. By immersing ourselves in the wisdom of others through reading, we can gain insights and perspectives that shape our thinking and actions. Additionally, by approaching our entrepreneurial endeavors with a scientific mindset, we can make informed choices and increase our chances of success. So, let's commit to continuous learning through reading and embrace the scientific approach to decision making for a more fulfilling and impactful journey.