Shane Parrish: Clear Thinking

Shane: All right, so first question on the form. What is a warning sign that you notice in yourself and others just before making a bad decision?

I’ve made a mistake. So the first warning sign is like I’ve made a little mistake, and I find that this is often a path where we try to correct that mistake, and that’s not necessarily the path that is best in that moment. So one thing to look out for is situations that go from bad to worse really quickly, because that mistake can make you emotional. Because that mistake can heighten all the defaults we talk about in the book. And you don’t want that situation to determine what happens next. You don’t want to keep digging. My grandfather used to say that, “First thing, when you find yourself in trouble, stop digging.” That’s the thing. I mean, that’s the moment where I really recognize that.