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How to ThinkIn the Age of AI

Question

What is Warren Buffett 5/25 rule?

intermediate

Quick Answer

A list of priorities without ranking is not a priority system — it is a wish list.

Example: Your team runs a quarterly planning session and produces a list of twelve strategic initiatives, each labeled 'high priority.' Three months later, none of them are complete. Resources were spread across all twelve, every initiative got a little attention, and nothing got enough. The next quarter, you force the team to stack-rank all twelve — number one through twelve, no ties allowed. The arguments are intense. People defend their projects. Trade-offs become visible that the flat list concealed. You fund the top three fully and defer the rest. By quarter's end, all three ship. The difference was not more resources or better ideas. It was the willingness to rank.

This concept is part of Priority Systems in the How to Think curriculum.