This #Adani vs FT/#Hindenburg Research brings an interesting thing to think about. On both sides, there’s vested interest involved. Adani wants to (anyhow) fulfill his goal of becoming a 1 trillion dollar company by the end of this decade and Hindenburg wants to short sell at any company’s expense. It waits for opportunities to pounce on. FT has its agenda as well. Maybe sell the news or something?
The point is, that nobody does anything without incentives. Man is a social being alright but an individual thinker. Incentives play the most crucial role in trying to think individually. That is why it is important to understand a couple of things before deciding on whether aligning with a particular individual or a group is beneficial or not.
The first thing to understand is that nothing happens without a cause. So an alignment with an individual or a group has to have an incentive for both the parties. You need to accept that the other side is benefitting by aligning with you. It may be anybody, right from your closest one to a stranger. My wife and I are together as it is mutually beneficial for us to navigate life together. Your boss needs you for your skill and you need your boss for the money or career.
The second thing is the more subtle thing that needs to be understood. Is the incentive of the other side at the expense of you or is the incentive a mutually beneficial one? Let’s take the example of my wife and I again. Since we are both benefitting together, our incentives are mutually beneficial, it are aligned. Let’s take the other example of the boss and you. Well here, incentives may vary. He may be getting more off you in terms of results or you may be extracting more money off his company compared to what you’re contributing to. Let’s take another example, Rafael Nadal and Roger Federer are very good friends, we all know that. But, when they play, each one’s incentive is at the expense of the other. Thus, this thing needs you to think and understand about the role of incentives in human life. If we pay attention to this, we naturally choose better as a result.
It can be applied in every walk of life if given a detailed look. You can use this trick when you eat, and you will notice that you are picking up the healthier option. As I said, you can use it in every decision-making process.
