I don't agree with the idea that learning new things crowds out what we learned before—in fact, integrating new information makes the whole network stronger, easier to work with, and so on.
But your broader point stands, and I love the ROMC label you came up with, because a lot of what we focus on, or reportedly take in, is a waste of time, of resources, of energy.
One thing I've found lowers my ROMC immensely in addition to what you've said is simply to invest with management teams that I respect because they know what they're doing (and have proven so).
I wish I had all those hours back, mostly spent when I was younger, thinking about what this management team should be doing or should not be doing!
Nice mental model. Worthy of storing in my attic. Can’t help but wonder what Munger’s analogue mental model would be.”Ignore the macro. Focus on the micro.” maybe. I’m also seeing shades of the Pareto principle in focussing on the 2 or 3 factors that matter.
Absolutely critical, I like to say I have limited brain energy don’t expend it waste fully. Re companies I would like to identify 2-3 main issues as key drivers and monitor others . You have to get that identification correct, when you do it works very well. Good luck all
Been thinking a lot about this in terms of return on invested time (ROIT). My main conclusions was to make sure priorities are set and time is used in a focused way. Thanks for these insights!
"modelling what matters" is an important point, even better if the metric is not directly disclosed by co, and sometimes, might not be a metric, could be qualitative ones, but having them on file and keeping track of them is an important part of continuous evaluation.
I don't agree with the idea that learning new things crowds out what we learned before—in fact, integrating new information makes the whole network stronger, easier to work with, and so on.
But your broader point stands, and I love the ROMC label you came up with, because a lot of what we focus on, or reportedly take in, is a waste of time, of resources, of energy.
One thing I've found lowers my ROMC immensely in addition to what you've said is simply to invest with management teams that I respect because they know what they're doing (and have proven so).
I wish I had all those hours back, mostly spent when I was younger, thinking about what this management team should be doing or should not be doing!
Intresting, thanks
Nice mental model. Worthy of storing in my attic. Can’t help but wonder what Munger’s analogue mental model would be.”Ignore the macro. Focus on the micro.” maybe. I’m also seeing shades of the Pareto principle in focussing on the 2 or 3 factors that matter.
Absolutely critical, I like to say I have limited brain energy don’t expend it waste fully. Re companies I would like to identify 2-3 main issues as key drivers and monitor others . You have to get that identification correct, when you do it works very well. Good luck all
Been thinking a lot about this in terms of return on invested time (ROIT). My main conclusions was to make sure priorities are set and time is used in a focused way. Thanks for these insights!
"modelling what matters" is an important point, even better if the metric is not directly disclosed by co, and sometimes, might not be a metric, could be qualitative ones, but having them on file and keeping track of them is an important part of continuous evaluation.
excellent writeup.