20-Slot Ticket

Here's Warren Buffett:

“I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches—representing all the investments that you got to make in a lifetime. And once you’d punched through the card, you couldn’t make any more investments at all.”

That's because to win, you have to bet very selectively. Only acting when you have an edge. This concept is a forcing function to make sure you are acting only when you have done the work, understand the situation, and have given it the appropriate amount of thought. He continues:

“Under those rules, you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about. So you’d do so much better.”

This works for all investments of time and money:

• Books you should read
• Relationships you should invest in
• Skills you want to learn
• Investment you want to make
• Sales prospect you want to pursue

Don't waste your next slot. Think carefully, make a decision, and go all in. Don't just kind of go for it. Go all in.

The Takeaway

Your odds of success improve when you are forced to direct all of your energy and attention to fewer decisions.

Try thinking about a 20-slot ticket as you make decisions around how to spend your time and money. Even print some up and keep them prominently on your desk or in your workspace.