The Metagame #009: Weathering The Storm

As we get closer to the holidays, it’s important to reflect on your progress this year. Here’s what’s in store for today:

• Understanding the long-term perspective

• Questions to align your worldview

Read time: 3 minutes

Life is not a straight path.

If it were, everyone would be rich and famous and wildly successful.

Life is a dark and windy road with sharp bumps, steep hills, and no way to see what's ahead of you.

But there are still people who have immense fortune and wealth. How are some people so lucky to achieve this, despite the constant difficulties of life?

In poker, there's a term called “bankroll.” It’s the total amount of money you have to work with. Not just in a single session, but in your overall poker career.

It's like your poker bank account.

One of the golden rules in poker (and any form of gambling) is:

Basically, don’t blow your bankroll.

You can't keep playing if you have nothing left to play with.

Proper bankroll management is the first step to becoming a successful poker player—you have to play in stakes that suit your gameplay.

The differences between a poker bankroll and your bank account actually aren’t too far apart, yet they’re often overlooked.

You’re risking more than you can afford to lose if you’re blindly picking stocks, living in a $4000 luxury apartment building, and burning through your savings.

Especially if you don’t have the income to support it.

Why do you think so many lottery winners go bankrupt within a few years?

It’s because they’re too focused on the short term.

Warren Buffett knows this.

The secret to long-term wealth is playing the long game.

That means not letting small dips demolish your bankroll and take you out of the game.

But this isn’t just with money—it applies to everything you do.

Perspective is Everything

When you’re blinded by the near-term dip, it's easy to have a pessimistic view. It isn't until you zoom out that you see the big picture.

This goes for a poker bankroll, investment accounts, and personal growth.

Don't let one bad day ruin your week.

Don't let one bad week ruin your month.

Don't let one bad month ruin your year.

You can see how this can go on forever.

(Well, not forever, but you get the point.)

Playing The Game

My go-to strategy to force myself to take a long-term perspective before making a decision is asking the following questions:

1. Will this decision take me out of the game for good?

2. Will this decision matter in 1 week? 1 month? 1 year? 10 years?

It can be challenging to know what will happen a year from now, let alone picture 10 years in the future, but practicing this type of projection will help you better understand what your long-term priorities are.

It's much easier to tell if a short-term decision is a long-term mistake by the mere act of trying to predict its future implications.

A bad decision is usually obvious when it’s misaligned with your core goals and values.

The next time you're tasked with a decision (and have the time to think analytically), answer those two questions.

It'll force you to think ahead and help you weather any storm thrown your way.

Quote of the week

Thanks for reading!

If you have any questions, hit me up on 𝕏 at @sam_starkman, or feel free to reply to this email!

— Sam