Regret Minimization Framework
Issue 14 - January 8th, 2021
Mental frameworks are necessary to help you make big decisions. The Regret Minimization Framework has been made famous by Jeff Bezos, and it has helped me when faced with large decisions over the past few years.
The idea is to project yourself into the future and look back on your decision from that perspective. Would the 80 year old version of yourself have regrets about this decision? Yes or NO. The answer should be very clear.
I know some people who are risk-averse may use different frameworks to make big decisions. I think you have to be completely OK accepting failure when utilizing this framework. Personally, I am completely fine failing as long as I know that I gave it my best effort, but there is something weird about this mentality in my mind which motivates me. I can sense failure in myself or lack of effort if I am not HELL YES excited about something. I have trained myself over the years to walk away from things where the answer is not HELL YES. You are either HELL YES excited about something or NO - there is zero in between. Being in the middle signals that you are actually on the NO side of the court leading to disappointment and anxiety.
More resources on these frameworks:
Derek Sivers - Hell Yes or NO
The Regret Minimization Framework
Newsworthy Links To Share
A former Compass agent in California filed a class action complaint against the New York-founded brokerage last week, accusing Compass of fraud, breach of contract, violation of labor law and non-compliant wage statements. “This class action challenges Compass’ unfair, unlawful and fraudulent business practices that were designed to gain market share by luring top real estate agents with promises of high commissions and compensation packages that include bonuses, covered business expenses and stock options to hire them from Compass’ competitors,” the complaint reads. Read more HERE.
Lemonade, the insurance company powered by artificial intelligence and behavioral economics, announced it has more than one million customers. Lemonade hit this milestone about 1,500 days after its initial launch, some 15-45 years faster than industry leaders such as State Farm, Allstate, GEICO, and USAA. Read more HERE.
Yesler, a Seattle-based startup, raises $3.3 million for its B2B lumber and building materials marketplace. Yesler streamlines purchasing operations by replacing spreadsheets, hand-written notes, and phone calls that dominate today’s lumber yard operations. Yesler’s software aims to eliminate extra transactions and material movements between lumber suppliers and lumber buyers. Read more HERE.
CoStar Group purchases houses.com URL signaling a long awaited move into the residential real estate marketplace sector. With the acquisition of the Houses.com domain name, CoStar Group plans to develop a vibrant national marketplace for agents and owners to successfully sell homes without disenfranchising or disintermediating valuable real estate agents in the process. Read more HERE.
Remember Napster? Read the transcript of this legendary email from Sean Parker to Spotify founder Daniel Ek in 2009.