Boiled down, this means:
Results: Define your desired Results first
Purpose: Understand exactly why you want those results
Action: Take repeated action to achieve those results.
The principle is that you should first understand in detail WHAT you want to achieve. What are you desired results? Be very specific about the RESULTS you want to achieve.
You then want to write down all the reasons WHY you need to achieve this. This brings in emotion and forces you to really consider in depth what you’re about to undertake.
Finally, you write down the specific actions of HOW you going to go about achieving what you want to achieve. Let me clarify, this is NOT a To-Do list. It’s far more action-oriented. It’s writing down the precise steps you need to take.
The problem with most ‘to-do’ lists is that they are too open and do not tell you exactly how to take the next step forward. Actions need to be specific and defined so that you know exactly what to do next. This avoids procrastination. Procrastination is the average person’s biggest enemy.
When you combine the emotional leverage of RESULTS with PURPOSE you have a really powerful force driving you to finish and deliver that particular project.
Why is this important you ask?
Well, the great majority of people (98%+) do not really know what they want. As a consequence, they never get anything useful and certainly never get what they want.
Simply put, this is loser thinking.
Winners always know exactly what they want and more importantly, they know exactly WHY they want it and with a little thought HOW they plan on achieving it. Therefore their focus and energy can be directed on taking action to move forward and achieve what they want.
This is such a simple formula, but believe me it is seldom used.
Let’s move to the next step in our framework.
When I constructed the series of five processes that are at the core to our investment framework, I based it on the thinking of Results then Purpose then Action.
What I ended up with is a robust toolkit that can be used to prompt your thinking in each of the areas from ‘Assessing an Investment’ through ‘Defining’, ‘Evaluating’ and ‘Actioning’.’
To promote free thought and brainstorming of further ideas I’ve defined, each of these core processes as a series of keywords and thoughts.
First is a series of questions to ask yourself about the investment. This is followed by a series of keywords to prompt your thinking about the Results aspect of the investment. Then, another series of keywords to prompt your thinking about the Purpose aspect of the investment. Finally as you come to Actioning your ideas, there are a series of keywords to prompt your thinking on How to action your thinking.
Combined, this is quite a powerful series of questions and words. This framework is designed to cover a broad range of scenarios. Not each word may have meaning for your specific investment.
That’s OK, just move to the next word.
I’ve designed this tool as a thought starter and provoker and not to be prescriptive. Every investment and type of investment has its own nuances and complexities.
If you are reading this, then you already are knowledgeable and understand the importance of gaining further knowledge in order to become a better investor.
I use this tool all the time.
What I normally do is sit down at a large table. I place a pad in front of me and the list and read through each word and write my thoughts about how that word or idea impacts the specific investment that I’m considering.
Sometimes I don’t get a lot of information written down, but most times I fill up pages with my notes. So I use the list to prompt my thinking.
Sometimes it works great for making sure I have considered all aspects of the investment. And it certainly helps make sure that I’m not going into an investment blind or blinded by emotion.
This alone, has saved me many, many times.