Since reading The Success Equation, I’ve been thinking about how I can improve my chances of future success. Understanding where the things I’m thinking about fall on the luck-skill continuum has changed both how I think about them and my expectations. A lot of things I want to accomplish as an investor and entrepreneur are materially influenced by luck, so I need to hone my decision-making process to increase the chances of getting the outcomes I want.

I’ve also been thinking about past outcomes—both good and bad—to determine how much luck and skill factored into them. When an outcome was good, I generally assigned too much weight to skill. The truth is that skill played a role, but factors outside my control heavily influenced many outcomes. I couldn’t predict that things would happen the way they did. But they did, and I benefited from them. I’ve had more luck on my side than I’ve previously acknowledged when outcomes were good.

When an outcome was bad, I assigned too much weight to luck. In reality, it’s been a mix of skill and luck. In some instances, I didn’t have sufficient skills to get the outcomes I wanted and thus failed. In others, luck just wasn’t on my side.

It’s interesting to think about outcomes in terms of the influence of skill and luck. I’m glad I read this book and can’t wait to use its analysis to evaluate future decisions.