Alex Hormozi: The Choice | How To Improve Decision Making Skills

Last updated: Jun 14, 2023

The video is about how to improve decision-making skills and how to separate the quality of a decision from its outcome.

This video by Alex Hormozi was published on Feb 25, 2021.
Video length: 06:51.

In this video, Alex Hormozi talks about the difficulty of being an entrepreneur and making the right decisions that lead to the right outcomes.

He explains that decision-making is the most valuable skill an entrepreneur can have, and that sometimes even the right decision can lead to the wrong outcome. He emphasizes the importance of using the same decision-making framework consistently, and separating the quality of the decision from the outcome.

Hormozi also gives examples of successful investors who have made decisions based on their own frameworks, and how this has led to their success.

  • Decision-making is the most valuable skill for entrepreneurs.
  • The disconnect between the right decision and the right outcome is the hardest part about entrepreneurship and life in general.
  • Using the same decision-making framework is crucial for success.
  • Separating the outcome from the quality of the decision allows for better decision-making in the future.
  • Claiming that a decision made in the past that didn't end up well was the wrong call can be poisonous and may not be true.

The Choice | How To Improve Decision Making Skills - YouTube

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The Importance of Decision-Making

  • Decision-making is the most valuable skill for entrepreneurs.
  • It is what makes you decide which way to go, who to marry, what business opportunity to pursue, how to price, how to start marketing, what to learn first, and who to get mentoring from.
  • You can take away the money from a billionaire, but they can recreate it again because of their decision-making skills.
  • Decision-making is what ultimately fuels success in life and entrepreneurship.
  • Repeating successful actions is important, but decision-making is the most valuable thing you have.
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The Disconnect Between the Right Decision and the Right Outcome

  • The hardest part about entrepreneurship and life in general is the disconnect between the right decision and the right outcome.
  • You can make the right decision and have the wrong outcome.
  • For example, choosing not to buy Bitcoin two years ago may have been the right decision, but the outcome did not match the quality of the decision.
  • If you change the way you make decisions because of a past decision that ended up bad, you have to apply the same decision-making context or framework to everything else.
  • You have to separate the outcome from the quality of the decision.
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Using the Same Decision-Making Framework

  • If you were to use a decision-making framework that would have made a deal a winner, you have to apply that same framework to all other businesses or situations that would have been losers.
  • Using a different decision-making framework would ultimately cause you to lose.
  • Separating the outcome from the quality of the decision allows you to look at decisions you've made and be able to separate whether it was a good decision independent of the outcome.
  • If you make a mistake because of poor calculations and repeat the same mistake over and over again, you should consider looking at your decision-making calculus and see if you need to tweak some things.
  • Looking at decisions you've made and being able to separate whether it was a good decision independent of the outcome is emotionally trying but an important lesson to learn.
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The Choice | How To Improve Decision Making Skills - YouTube

An Example to Show the Importance of Separating Outcome from Quality of Decision

  • If you had a perfect baseball swing, it doesn't mean you'll hit a home run every time.
  • Similarly, making the right decision doesn't always guarantee the right outcome.
  • Separating the outcome from the quality of the decision allows you to make better decisions in the future.
  • Claiming that a decision made in the past that didn't end up well was the wrong call can be poisonous and may not be true.
  • Using information that you have today to make a decision that you would have made in the past means that you're a different person because you're not using the same information you had access to in the past.
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The Importance of Consistency in Decision Making

  • Being the best at something doesn't mean you'll always make the right decision.
  • Even the best batters strike out sometimes, but they still have a high average.
  • Instead of constantly changing your decision-making process, stick to a consistent approach.
  • Over time, the positive outcomes from good decisions will outweigh the negative outcomes from bad decisions.
  • Don't bet everything on one decision, but understand that consistency in decision making is key to success.
  • Consistency allows you to judge the quality of your decisions based on principles rather than outcomes.

Watch the video on YouTube:
The Choice | How To Improve Decision Making Skills - YouTube

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