Big winners pay for many experiments. 1/2 Let's talk about baseball. If you swing for the fences, you're going to strike out a lot, but you're also going to hit some home runs. It's as true for business as it is for baseball. However, there's just one difference.
2/2 Baseball has a truncated outcome distribution: No matter how well you connect, the most you can get is 4. In business, every once in a while, when you step up to the plate, you can score one thousand runs. This long-tailed distribution of returns is why you should be bold.
Here's Bezos talking about the Echo: 1/2 If you had asked a customer "Would you like a black, always-on cylinder in your kitchen about the size of a Pringles-can that you can talk to and ask questions, that also turns on your lights and plays music?" They would've said no.
Be an owner 💎🙌 Many investors are short-term tenants, they turn their portfolios so quickly that they are really just renting the stocks they temporarily "own." Owners aren't so short-sighted. Long-term thinking is both a requirement and an outcome of true ownership.
It's impossible to produce extraordinary results without extraordinary people. 3 questions to consider before hiring: 1. Will you admire this person? 2. Will they raise the average level of effectiveness of the group? 3. Along what dimension might this person be a superstar?
Pay to Quit. Once a year, Amazon offers to pay its employees to quit. While the headline says "Please Don't Take This Offer." The goal is to make them rethink their priorities. An employee staying somewhere they don't want to be isn't healthy for the employee or the company.
2/2 Just one example / perfect headstands Most people think that if they work hard, they can master a handstand in about two weeks. In reality, it takes about six months of daily practice. If you think you can do it in two weeks, you're just going to end up quitting.
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The 15-Minute MBA: 23 Lessons From Jeff Bezos's 23 Letters To Amazon Shareholders
The 15-Minute MBA: 23 Lessons From Jeff Bezos's 23 Letters To Amazon Shareholdersamazon.com