Option Value Maximization

Prioritize things that compound (health, relationships, skills) over minimizing regret

Asha Sharma
How 80,000 companies build with AI

Option Value Maximization

"I used to use the minimize regret framework... my worldview changed a little bit and it was all about maximizing option value... when I'm 70, it's not about what do I look back on in my life and count the number of regrets, it's really about looking forward in the number of adventures I will still have." - Asha Sharma

What It Is

A life framework that shifts from avoiding regret to maximizing future possibilities. While the "regret minimization" framework (famously used by Jeff Bezos) asks "what will I regret not doing?", option value maximization asks "what will give me the most possibilities in the future?"

The key insight is that certain investments—health, relationships, trust, skills—compound over time. They don't just prevent regret; they actively create more options for future adventures and impact.

How It Works

Regret Minimization (Traditional):

  • Project yourself to age 80
  • Ask: "Will I regret not trying this?"
  • Minimize the number of future regrets
  • Backward-looking orientation

Option Value Maximization:

  • Project yourself to the future
  • Ask: "How many options and adventures will I have?"
  • Maximize accumulated assets that compound
  • Forward-looking orientation

What Compounds:

  • Health - "Learning rest on the weekend can compound in the future"
  • Relationships - Trust accumulated over time opens doors
  • Skills - Capabilities compound and combine in unexpected ways
  • Family - Foundational relationships that enable everything else

The Shift in Trade-offs: Regret minimization can sometimes justify overwork ("I'll regret not giving this my all"). Option value maximization reframes the equation: sacrificing health, relationships, or rest might reduce your future options even if it prevents short-term regret.

How to Apply It

  1. Reframe trade-off decisions - When facing work-life tensions, ask: "Which choice gives me more options in 10 years?"

  2. Invest in compounding assets - Health, relationships, skills, and trust all compound. Treat them as investments, not luxuries.

  3. Value rest as accumulation - "Learning rest on the weekend can compound in the future." Recovery isn't lost time; it's future option creation.

  4. Look forward, not back - At 70, the question isn't "how few regrets do I have?" but "how many adventures can I still have?"

  5. Protect what enables optionality - Family, health, and core relationships are foundational. They're not competing with your goals; they're enabling future ones.

When to Use It

  • When making major life or career decisions
  • When justifying overwork or under-investment in health/relationships
  • When the "regret minimization" framework feels like it's pushing you toward unsustainable choices
  • When you're in your "adult years" with family responsibilities
  • When evaluating what truly matters to long-term fulfillment

Comparison to Regret Minimization

Regret Minimization Option Value Maximization
"Will I regret not doing this?" "Will this give me more options later?"
Backward-looking Forward-looking
Count avoided regrets Count future possibilities
Can justify sacrifice Protects compounding investments
Individual achievements Accumulated capabilities & relationships

Source

  • Guest: Asha Sharma
  • Episode: "How 80,000 companies build with AI: Products as organisms and the death of org charts"
  • Key Discussion: (53:18-54:31) - Describes her evolution from regret minimization to option value maximization
  • YouTube: Watch on YouTube

Related Frameworks

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