incentives
Take Accountability
The rule
Put your own name on the risk. Owning the outcome, not fine words, is what really shows how someone will act.
Where it flips
Owning outcomes can be read wrong as making reckless solo bets, just to feel brave. The fix: own well-sized, well-thought choices. Do not confuse owning the result with betting your whole house.
People who take open, personal blame for results get more trust. With trust comes more leverage and more reward. Owning the outcome means you are willing to be blamed when it goes wrong. That is exactly why it earns reward when it goes right. As an investor, own your choices by name. Write down why you bought, so the praise and the blame are both yours. Judge company bosses the same way. Look at who has their own money and name on the line, not who gives the best speech.
A worked example
Vikram writes down his reason for every buy in a diary he cannot change later. When a bet fails, he owns it fully. Over the years this honesty makes him a far sharper investor than blaming 'the market'. [illustrative]
How to spot it
- ·a name on the choice, not a committee
- ·own money and name on the line
- ·willing to be openly wrong
Naval Ravikant · The Almanack of Naval Ravikant