Mental models allow an investor to quickly analyze a company based on learned heuristics and pattern recognition.
This week we review 3 of our favorites:
- Marshmallow Test
- Cult-Like Communities
- Paradox of Choice
What are your favorite models?
macroops.substack.com/p/three-useful…
This week we review 3 of our favorites:
- Marshmallow Test
- Cult-Like Communities
- Paradox of Choice
What are your favorite models?
macroops.substack.com/p/three-useful…
1/ Marshmallow Test Model
Any company deferring today’s profits for tomorrow’s success is building a Marshmallow-Test Business Model.
Think of a company like $RDFN. They're paying agents full-time salaries in a highly cyclical environment.
Why? They're focusing on 2morrow
Any company deferring today’s profits for tomorrow’s success is building a Marshmallow-Test Business Model.
Think of a company like $RDFN. They're paying agents full-time salaries in a highly cyclical environment.
Why? They're focusing on 2morrow
2/ Cult-Like Communities
This model is simple: Find things that people use to signal social status, then create a brand that brings those people together.
Companies like $PTON, $YETI, $TSLA, and $LULU all fit this model.
How? By creating shared values / community w/ customer
This model is simple: Find things that people use to signal social status, then create a brand that brings those people together.
Companies like $PTON, $YETI, $TSLA, and $LULU all fit this model.
How? By creating shared values / community w/ customer
3/ Paradox of Choice
Helping customers solve the Paradox of Choice is a valuable and highly profitable endeavor.
Companies do this through a few mechanisms like brand name trust, curated algorithms, and scarcity.
These tools reduce 'choice-friction' and save customer time.
Helping customers solve the Paradox of Choice is a valuable and highly profitable endeavor.
Companies do this through a few mechanisms like brand name trust, curated algorithms, and scarcity.
These tools reduce 'choice-friction' and save customer time.
4/ Subscribe Here
If you enjoyed this essay, please subscribe to my Substack (link below).
We find the world's best businesses trading at prices that don't reflect that reality.
We also write extensive deep dives on the market's biggest winners.
macroops.substack.com
If you enjoyed this essay, please subscribe to my Substack (link below).
We find the world's best businesses trading at prices that don't reflect that reality.
We also write extensive deep dives on the market's biggest winners.
macroops.substack.com
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