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And finance Allah shmoop What are planning Horizon and infinite

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horizon All right people You go to the doctor for

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a routine checkup and get some sobering news after you

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turn your head and cough you picked up a parasite

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from a toilet seat at the mall And while there's

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a worm like creature in your belly growing at an

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exponential rate well right now it's about the size of

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a hot dog By tomorrow it will be the length

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of an average garden hose and you'll probably be bulging

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at the seams in excruciating pain Within a couple days

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the warm will likely have burst through your body Leaving

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you is a pile of goo Is it slippers off

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to the mall to lame or eggs in the bathroom

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But for now you're in the hot dog stage You

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can still move around You can still do whatever you

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want But you're thinking How are you going to spend

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that last day Brush your teeth Finish your taxes politely

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return all the work emails sitting in your inbox Ari

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The whole bunch of donuts Yeah probably not More likely

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you'll empty out your bank account and catch the fastest

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flight to Vegas Okay same doctor's visit Different result Everything

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checks out You're going to live a long life That's

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the good news The bad news No teeth brushing tax

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doing email returning all that stuff all back on the

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table all part of your itinerary Now in your life

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your time horizon matters You make different decisions based on

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Well when you look on ly in the short term

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than you would if you were looking at the longer

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term a long timeline toe worry about things Which brings

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us to the difference between planning horizon and infinite horizon

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Okay a planning horizon is the length of time into

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the future that a strategic plan covers Think Stalin's five

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year plans and you know old Russia or in a

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slightly gentler vein a company strategic quarterly plan Like the

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next thirteen weeks here's what we're going to dio or

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your program to lose twenty pounds in twenty days Yeah

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good luck with that An infinite horizon refers to the

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long long long term staring wistfully at the window to

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an unknowable future may be a time of robot servants

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and flying cities are maybe conquest by bug creatures from

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space Who knows So how does this notion come into

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play in a real life today Well think about uber

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in the Ridesharing company's planning horizon They envision transitioning from

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humans using their cars to company owned self driving vehicles

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It's not gonna happen tomorrow It's a long term goal

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but it's within their planning horizon But on the infinite

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horizon while someone might invent teleportation like cars or self

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driving or otherwise would then become irrelevant And uber's plan

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is shot And that's maybe a good thing too for

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uber because while self driving cars might be nice but

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they're no match for conquering bug people from space hopefully

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we'll just be able to you know teleport our way 00:02:39.685 --> [endTime] out of those problems

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