Consider second order effects of your actions
Summary
- An action has an immediate effect. But then it also has 2nd and 3rd order effects. Try to consider these before making a decision
Details
- Example: If a few people stand on their tiptoes to see an event, then it ends up with everyone standing on their tiptoes. Everyone is worse off.
References
Quotes
Warren Buffett used a very apt metaphor once to describe how the second-order problem is best described by a crowd at a parade: Once a few people decide to stand on their tip-toes, everyone has to stand on their tip-toes. No one can see any better, but they’re all worse off.
Buffett, Warren.
“Letter to Shareholders, 1985.” BerkshireHathaway.com. Retrieved from: http://www.berkshirehathaway.com/letters/1985.html