The Best Mental Models

Moat:

“An intrinsic characteristic that gives the business a durable competitive advantage” - Munger

The Second-Order Thinking Mental Model

A mental model is simply a representation of how something works. We cannot keep all of the details of the world in our brains, so we use models to simplify the complex into understandable and organizable chunks.

Farnam Street • Mental Models: The Best Way to Make Intelligent Decisions (~100 Models Explained)

A first principle is a basic assumption that cannot be deduced any further. Over two thousand years ago, Aristotle defined a first principle as “the first basis from which a thing is known.”

First principles thinking is a fancy way of saying “think like a scientist.” Scientists don’t assume anything. They start with questions like, What are we... See more

jamesclear.com • First Principles: Elon Musk on the Power of Thinking for Yourself

Lindy Effect: "If a book has been in print for forty years, I can expect it to be in print for another forty years. But, and that is the main difference, if it survives another decade, then it will be expected to be in print another fifty years.”

The Circle of Competence is a mental model that involves developing a knowledge of what specific areas an individual has an understanding of or experience in. Everyone has built up useful knowledge in some area of the world. By realizing where your strengths lie, you can determine the areas where you have very little familiarity and avoid them to... See more

What is the Circle of Competence and How Do You Find Yours? | MyWallSt

Storytelling: A tremendously useful tool to increase the longevity of your message in the audience’s mind. Stories spark emotions. People use stories to make sense of things. People learn from stories.

A Margin of Safety: How to Thrive in the Age of Uncertainty

jamesclear.com