Thinking in probabilities…
If you haven’t read Beat The Dealer by Ed Thorpe, it’s a classic. It’s also one of the best “business” books ever written.
It’s essentially a bible for gamblers. Thorpe teaches you how to count cards – but not really. Let me explain…
For me, the book was about something way more valuable than counting cards.
Thorpe taught me how to think in probabilities.
Thinking in probabilities is more valuable in life than counting cards in Vegas can ever be.
Armed with this knowledge, I would find struggling businesses and offer to fix their flagging revenue.
In mere minutes, I could see what their most important metrics were… and devise a strategy to lever-up sales.
This is elementary stuff. The thing is…
Most business people don’t know it!
For example, I found an events business – an industry I knew well.
No one was tracking the numbers correctly. They had people sign in at their presentations.
But then no one analyzed the relationship between weekly sales and the number of butts they had in the seats. I’m not kidding.
Turned out there was one metric that mattered most to this business. What was it?
Getting more butts in the chairs. That was it! The problem was…
None of their existing people could think about the connection between leads and sales.
I told the owner, “If you can put a butt in a chair for less than what you are making with your current sales conversion rates… you should spend as much money as you can to get as many butts in chairs as possible. Spend a trillion dollars and find a bigger venue!”
The result was a 10x increase for them.
This is Marketing 101.
If you are converting well, you should spend as much money as you can and get all the people you can until the conversion rate drops and the numbers no longer work.
They still didn’t get it. They kept telling my why they didn’t want to spend above a certain amount on their marketing to get more people to the event.
Incredibly, they fought me tooth and nail until I finally realized I had to move on.
Fortunately, I got so good at thinking in probabilities… and seeing the connections between things…
I could 10X a business without any serious effort. I’m not bragging. This is not revolutionary stuff and there’s no secret to it. The thing is…
Most people don’t think in probabilities – and refuse to accept the world is structured in such a way that we are always operating with huge gaps in our knowledge.
This becomes even more important when it comes to investing.
You can never have perfect knowledge of any situation. Which means you HAVE to think it bets. You have to think in probabilities when it comes to investing your money.
This was the phase of my life and career when I realized I was pretty good at thinking in bets.
If you want to see what it looks like when real professionals think in probabilities and invest by putting the winning probabilities on your side…
Check out the team I put together for you at Rebel Capitalist Pro.
Go here to start your $1 trial.
George
P.S. – After I figured out how to increase revenue for other businesses, I became intensely interested in money and investing. The problem was… I still had no idea how money and finance worked. That was all about to change…
Stay Tuned…