Friday, September 7, 2018

Not making a decision while tired

I've been updating a short checklist that I created to use as the last thing I look at before making an investment in something. These kinds of checklists are best kept short, and mine currently consists of 12 items. There is one question I've added that may seem obvious, but that I decided is best to physically make myself confirm before investing:
  • Are you tired?
This was inspired by re-reading a Charlie Munger comment:
"We didn’t know, when we started out, this modern psychological evidence to the effect that you shouldn’t make a lot of important decisions when you’re tired and that making a lot of difficult decisions is tiring....  I cannot remember an important decision that Warren has made when he was tired."
Obvious? Probably. But its simplicity doesn't make it any less important.