#746 - Morgan Housel - 12 Unexpected Laws Of Human Psychology
Modern Wisdom
Balancing Optimism and Pessimism in Business
Admiral Stockdale's story highlights the importance of being a rational optimist rather than a pure optimist, as seen when some POWs were in prison. The ability to balance optimism with pessimism is crucial in business, exemplified by Bill Gates' approach at Microsoft. Gates took bold optimistic swings with conservative business management, keeping a lot of cash and no debt. This balanced approach allowed Microsoft to thrive while other businesses failed due to excessive optimism. The key is to know when to apply optimism and pessimism appropriately to achieve long-term success.
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