Week 219

Positive post Sunday, May 2, 2021- Week 219. 

Two weeks ago, I wrote about competitive advantage and cited Morgan Housel’s article, Sustainable Sources of Competitive Advantage.  I also referenced his broader article from March 7, 2018 titled, Ideas That Changed My Life.  Here’s the link for those that mist it a few weeks ago, Ideas That Changed My Life · Collaborative Fund.  One of the ideas that Housel noted that changed his life was understanding that our personal experiences make up maybe 0.00000001% of what’s happened in the world but maybe 80% of how we think the world works. 

The statement in the next two paragraphs below is taken directly from the article.

People believe what they’ve seen happen exponentially more than what they read about has happened to other people, if they read about other people at all.  We’re all biased to our own personal history.  Everyone.  If you’ve lived through hyperinflation, or a 50% bear market, or were born to rich parents, or have been discriminated against, you both understand something that people who haven’t experienced those things never will, but you’ll also likely overestimate the prevalence of those things happening again or happening to other people.

Start with the assumption that everyone is innocently out of touch and you’ll be more likely to explore what’s going on through multiple points of view, instead of cramming what’s going on into the framework of your own experiences.  It’s hard to do. I t’s uncomfortable when you do.  But it’s the only way to get closer to figuring out why people behave like they do.

I recently read 2 books, Think Again by Adam Grant, and in February in honor of Black History Month, The Memo by Yasminda Harts.  Both books have challenged my thinking and perspective which, as Housel notes, have been based on my own personal experiences.  Grant and Harts have increased my awareness as to how others see the world.  This has been challenging for certain and uncomfortable at times but as they say, “No pain no gain”.  I continue to grow by listening to others and recognizing and appreciating that we all have different experiences through our life journeys that shape our behaviors and beliefs.  It’s with open minds and thoughtful discourse that we appreciate others that look differently than us and think differently than us.  And when we do, it makes the world a better and beautiful place.

How are you biased by your own personal history?

Do you acknowledge your biases and are you open to exploring how the world works through multiple points of view?