Inner vs Outter Scorecard: Two ways to live life
Warren Buffet and Charlie Munger are probably the best long-term investors in the world. The way they think is different, and over time, they have explained their framework and mental models for facing life in a successful manner.
“The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.”
— Warren Buffett
Today, we are going to deep dive into the inner and outer scorecard framework. Two faces of the coin, two ways to understand life:
The outer scorecard is when you base your success on what others think about you or decide what success looks like (exogenous motivation). This is how most people measure success: fame, recognition, money, status, and power.
The inner scorecard is when you play your own game and base your success on your own rules (endogenous motivation). This is how most successful people measure success: effort, attitude, values, commitment, and performance.
I think it's a very simple rule and an interesting way of framing life. What I am 100% sure of is that nothing material will give you permanent happiness. Bottom line, play the long-term game, based on your inner scorecard and always compound 😀
Here's an example of how to apply it for a startup CEO/Founder:
Outer Scorecard:
Raise 100M €
Become a Unicorn
Be on Forbes 30 under 30
Inner Scorecard:
Build something people want and love
Pitch the value proposition and benefits of your company like a rockstar
Execute and look for great progress
Tip: Define and adapt your goals based on your inner scorecard, as it is the only thing that you have control over.
Finally, remember the Jim Kwik quote > “If an egg is broken by an outside force, life ends. If broken by an inside force, life begins.” Thanks for reading.
TL;DR > Read the CARD
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