“The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step”
— Jeff Bezos
Simplified Meaning:
In baseball, the best result of hitting the ball is getting a home run, which brings in a maximum of four runs. The potential outcome is limited. However, in business, the potential gains can be much larger. Sometimes, a smart decision or an innovative idea can lead to huge success, far beyond the expected results. For example, think about a small technology start-up. With the right product and strategy, it can grow into a big company like Apple or Google. This huge potential for success doesn't exist in baseball the same way. So, the idea here is that while sports have clear limits to how successful one can be, business offers opportunities where your success can be almost limitless. If you are working in or starting a business, focus on making the smart decisions that can lead to extraordinary outcomes, because you never know when one of your efforts could turn into something very big.
