Anatomy Of A Decision
Found this via my new favorite blog FarnamStreet. The Farnam street blog is a also dedicated to worldly wisdom and I recommend reading it along with the Value Investing World blog & the AlFin blog.
Click Here To Read A Paper Of The Anatomy Of A Decision
Article Introduction (Via Farnam Street)
There is a decision-making pattern that applies in all situations large or small, though in small decisions the steps are not especially evident. The steps are: gathering information, analyzing information and creating alternatives, selecting and implementing an alternative, and follow up on implementation. The amount of effort applied in any decision situation should be consistent with the potential consequence of the decision. Essentially all decisions are subject to certain limitations described as constraints, forces, or circumstances that limits one’s rage of choices. Follow-up on the implementation is the phase of decision making most often neglected, yet it is frequently the phase that determine success or failure. Risk and uncertainty are always present in a decision situation, and the application of human judgment is always necessary.
