“You’ve got to have mental models in your head.”
–Charlie Munger
–Charlie Munger
What are the mental models? A mental model is an explanation of how something works.
Mental models are deeply held beliefs about how the world works.
Mental Models help you understand life:Example:
Supply and demand is a mental model, which helps you understand how the economy works.
Game theory is a mental model that helps you understand how relationships work.
Mental Models help you in decision making:Mental models are the thinking tools that help you understand, make decisions, and solve problems.
Learning a new mental model gives you a new way to see the world.
Mental Models help you think better: The quality of our thinking is proportional to the models in our heads.
The more models you have, the bigger your TOOLBOX is.
We are 1D:Each of us sees something differently:
Engineers will think in systems
Biologists will think in terms of evolution
Psychologists will think in terms of incentives
By putting these models together in our heads, we can see a problem, in a 3 dimensional way.
If you’re looking at a problem in 1 way, you will have a blind spot, and blind spots can make you think wrong.
If you’re looking at a problem in 1 way, you will have a blind spot, and blind spots can make you think wrong.
Expanding your set of mental models:We should continuously upgrade our minds.
This means:
Reading
Understanding
Learning
Your mind needs a variety of mental models to create a complete picture of how the world works.
The more sources you have, the clearer your thinking becomes.
The more sources you have, the clearer your thinking becomes.
Liquid knowledge:In school, we tend to separate knowledge:
Biology
Economics
History
Physics
Psychology
World-Class thinkers usually avoid looking at life through just one lens.
Instead, they develop a "Liquid knowledge" that flows easily from one topic to another.
It shows the importance of learning new mental models, and how they connect with each other.
It shows the importance of learning new mental models, and how they connect with each other.
But you don’t need to master every detail! If you can master the fundamentals of each model, you can have a good picture of your life.
“80 or 90 important models will carry about 90 percent of the freight in making you a worldly-wise person.”
–Charles Munger
Book recommendation: “100 Mental Models”This remarkable book talks about the most important mental models.
It helps you build a mental latticework in your head and automatically use them for the rest of your life.
https://gumroad.com/a/485553267/AxfYH
It includes:
Book: Each model is explained in detail
Cards: Summaries of each model
Quotes: Sentences of great people
Mental Maps: Schemes for quick reference
Extras: Free additional 46 books
Get it now and start learning about the world
https://gumroad.com/a/485553267/AxfYH
Book: Each model is explained in detail
Cards: Summaries of each model
Quotes: Sentences of great people
Mental Maps: Schemes for quick reference
Extras: Free additional 46 booksGet it now and start learning about the world

https://gumroad.com/a/485553267/AxfYH
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