← Decision Frameworks
Decision Frameworks · Card 6
The One-Sentence Test
Say it in one plain sentence.If you can't, you're not ready.
- Fails the test
- Passes
- The chart might go up
- Earnings up 30%, price hasn't caught up
If you can't explain your reasoning in one plain sentence a stranger would understand, you probably don't understand it well enough to act on it yet.
If it can't survive being said in one plain sentence, it isn't ready yet.
In Practice
"I'm buying this because the chart looks like it might go up" fails the test. "I'm buying this because its earnings grew 30% and the price hasn't caught up yet" passes.
Generic Example
"I'm doing this because it feels right" rarely survives being said out loud to someone else. A real reason usually does.
Ask yourself
Can I say why I'm doing this in one sentence; without using the word "feel"?