The 3 Laws of Wise Decision Making: Inside Naval Ravikant's Principles

“Your success in life depends on your ability to make good decisions.”

Naval Ravikant is a highly successful investor in the technology sector, making early bets on companies such as Twitter, Uber, Postmates, and many others.

Throughout his career, he has gained valuable insights into decision-making that he has distilled into three principles.

Long-Term > Short-Term

The first principle is to always choose the long-term path over short-term gains. Although it may seem like taking the easier path is the better option, in reality, it is often the opposite. Opting for short-term gains can be tempting, but it can lead to long-term pain and missed opportunities. Therefore, it is important to have a long-term perspective when making decisions.

Discard Bias

The second principle is to discard biases. We all have blind spots that can impair our ability to make wise choices. It is essential to identify these biases and eliminate them to make better decisions. Examining the problem from new perspectives can help in this regard.

Don’t fool yourself

The third principle is to cultivate radical honesty with yourself. This is probably the most challenging principle, but it is also the most important. As the famous physicist Richard Feynman said, "You should never, ever fool anybody, and you are the easiest person to fool." Being honest with yourself can help you identify your blind spots and overcome them, leading to better decision-making.

In short, Naval’s three principles for decision-making are to prioritize the long-term, discard biases, and cultivate radical honesty. By implementing these principles, you can make better decisions that lead to long-term success and personal growth.