The Best Mental Models
Moat:
“An intrinsic characteristic that gives the business a durable competitive advantage” - Munger
Species tend to adapt to their surroundings in order to survive, given the combination of their genetics and their environment – an always-unavoidable combination. However, adaptations made in an individual’s lifetime are not passed down genetically, as was once thought: Populations of species adapt through the process of evolution by natural selec... See more
Farnam Street • Mental Models: The Best Way to Make Intelligent Decisions (~100 Models Explained)
The Red Queen Effect
Did you just multiply your hard-work with zero or added it?
abishekbabu.medium.com
You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life. You've got to hang experience on a latticework of models in your head. What are the models? Well, the first rule is that you've got to have multiple models— because if you just have one or tw... See more
Charlie Munger • A Lesson On Elementary, Worldly Wisdom As It Relates To Investment Management & Business – Charles Munger, USC Business School, 1994
The Second-Order Thinking Mental Model
linkedin.com
People who learn to extract the key ideas from new material and organize them into a mental model and connect that model to prior knowledge show an advantage in learning complex mastery. A mental model is a mental representation of some external reality.
Henry L. Roediger III • Make It Stick
mental model