Devoted to Managers and those that seek to improve their management skills

Don't make decisions ruled by emotions

The statement above of not making decisions based upon emotions, is about as simple and seemingly easy to copy for anyone. But the truth is that it's one of the hardest disciplines to maintain while the world swirls around us.

One writer said of Buffett: "He looks at things very rationally. He doesn't like to get his emotions involved."

Someone commenting on that said, "While that sounds like a sensible practice anyone could emulate, it's very difficult to keep excitement, worry and other emotions from affecting decisions."

I don't disagree that it's hard, but it can be done. One of the ways Buffett does it is by staying out of the go-go atmosphere of New York, where the next great investment and company comes along about every 15 minutes. He understands the power of that type of pull and stays keeps from it by design.

We've talked about it before here when I was in that investment atmosphere, and how strong the forces were to plunge in and out of the opportunities that came along, that were made to look like you'd miss out on some huge profits if you didn't get in now. I made my biggest investment mistakes at that time.

In business it's the same. No matter how fast people are saying the world is going by us, it's the worst reason to do something, just because it's made to look like it's passing you by.

How can we combat this? It always goes back to our purpose and what we understand. That is the great filter that can anchor us against the constant temptation to enter into areas that we have no business doing.

It's simple, effective and keeps us from making the types of mistakes that could literally kill a company. Everything must line up with our purpose or we need to pass on it. It's the key to ruling our emotions when everything within us wants to take that step we're not sure of.

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