Ray Dalio: Weigh The Value Of Seeking Additional Information Against The Cost Of Postponing A Decision

Johnny HopkinsRay DalioLeave a Comment

In his book Principles, Ray Dalio discusses prioritizing investing decisions by weighing the value of seeking additional information against the cost of postponing a decision. Here’s an excerpt from the book:

Think about the appropriate time to make a decision in light of the marginal gains made by acquiring additional information versus the marginal costs of postponing the decision.

There are some decisions that are best made after acquiring more information, and some that are best made sooner rather than later.

The later a decision is made, the more informed it can be; however, making it later can also have adverse consequences (e.g., postponing progress).

Understanding the trade-off between the marginal gains of acquiring the extra information against the marginal costs of postponing a decision is an important factor in the timing and preparation of decision-making.

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