You’re trying to make an important decision and you find that there’s a lot of advice flying around. Sadly, you soon realize that most of it isn’t good and very little of it is actually useful. How do you make it easier for yourself to identify bad advice?
There’s a lot in my sketch (below). So, here are the 3 key takeaways –
- Great advice has 2 characteristics – it is based on principles and it is intended for your benefit. Great advice is incredibly rare because it requires a lot of thought to get to the principles and in-person investment to understand your specific context.
- On the flip side, bad advice is what you hear 80%+ of the time. The most telling characteristic of bad advice is that the giver either speaks to himself/herself or to his/her interests. Combine this with a random jumble of thoughts and anecdotes and it is easy to spot. Most bad advice is a result of absence of “skin in the game” (H/T N N Taleb). When someone says something is ‘good for you’ when it is also good for them and when they don’t face the downside of the decision, it is likely not good for you. Think: Peter Thiel telling you to drop out of school.
- We are all asked for advice by folks around us. To become someone who gives generally useful advice, we need to combine 2 things – 1) Think in terms of principles – i.e. truths that are applicable across contexts (hard to do) and take the time to structure your advice, and 2) Stop giving advice to yourself (very hard to do). As a bonus – this scales as it doesn’t need to be personalized.
I hope you find this useful.