1. Concept of sure loss aversion: When in gains, we don't want to take risk. When in loss, we want to take risk.

2. Quitting on-time feels like you've quit early especially when you are in the state of losses.

3. Quit while you're ahead provided that the game or path you're on has a losing proposition.

4. Monkeys and Pedestals model from Google X. - "imagine your innovation project is to get a monkey to juggle flaming torches from a pedestal in a public park"

• pedestal is the easy part
• getting the monkey act is the hard part
• hence you should start by focusing on the monkey

5. The illusion of progress is more enticing that quitting and admitting defeat

6. Create a kill criteria for your decisions - this should involve a date and state (ie IF X does not happen by time Y then you stop)

7. Endowment effect - there is a gap between what you are willing to buy something for and what you are willing to sell it for. We value items we own much more highly.

8. Optimism only makes you take longer to quit. And doesn't improve outcomes.

9. It becomes hard to quit when your identity is tied to something - Sears went bankrupt on its retail operations but ran a super successful financial operation. It started as a mail order business then moved to department stores which ultimately got killed by discount, high end and specialty retailers:

• Founded All State insurance
• Discover Financial Services
• Coldwell Banker in real estate brokerage
• Dean Witter in security brokerage

#Psychology