Welcome to The Beacon. Creating Buy-in’s short newsletter designed to shine a light on the nuances of leadership and give a fresh perspective on how to move forward.
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The Weight of Loss
Who in this scenario has to ensure a quality job? A banker who sells stock for companies he has no personal investments in? Or a pilot flying passengers across the Atlantic?
Loss Hurts More Than an Equivalent Gain
Which scenario gives off more of an emotional response? Let’s say you were doing an audit of your banking statement and notice a subscription plan you know you canceled, charged you $100 for the year and there’s no way to get a refund. Or, when grabbing an old jacket you haven’t worn in a while, you find a $100 bill. Both are equivalent value and both have an emotional response, but did you know that the loss affects people 5x more than the equivalent gain?
Check out this 3 minute clip by former FBI hostage negotiator Chris Voss on how he uses this simple concept
"Skin in the Game"
It’s not often you come across books that open a pathway in your mind to see things in a whole new light. Nassim Nicholas Taleb has several books that provide this kind of insight but “Skin in the Game” hits different. We cover it in today’s Spotlight but in it, he discusses risk, leverage, loss and how the world operates in an asymmetrical fashion. If there is anything I look for in a book, it’s to come away with a distilled perspective of the world to help simplify the way things work. This book does just that.
