- Type A decision making focuses on the few key factors.
- Type B decision making understands that the fat tail of factors might become crucial someday.
- Ignoring the fat tails mean failing to understand that these factors could come and bite us someday. Recognizing the fat tail is the key to Type B decision making.
- In investing, this means looking holistically at the business and asking questions all round.
- In real-world decision making, it also means constant reviewing of past decisions.
- One should continuously assess the situation and challenge the assumptions.
So strive to be a Type B thinker and decision maker.