Holding on to a decision

When you commit to a decision, there is a bias that creeps in where we tend to evaluate it more positively than other options.

It helps to be aware of this bias, especially when new information appears that should cause you to take action and you don’t.

When I was working in funds management, we had a technique that helped with this bias. When we held a company in our portfolio and negative information came to light about that company, rather than ask if we should HOLD or SELL the company, we considered if we would BUY this company if we weren’t holding it.

You can apply this technique to the decisions you’ve made. It can be hard to let go of a decision, so try instead to ask if you would make the same decision again with new information.


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