Thread by @MnkeDaniel

Charlie Munger spent the last 98 years finding and implementing Mental Models.

He created a grid of Models that every problem has to go through.

In this and the following Threads of this series, I’ll present you all of those Models.

Let’s go!

1. “Be a Swiss Army Knife!”

“To a man with a hammer, every problem looks like a nail.”

Even the smartest people behave like such a man if they only stay in their field of expertise.

But complex problems will never be solved by looking at them from only one perspective.

Instead, be a Swiss Army knife.

Adapt your thinking to the situation and cross the boundaries of your field.

Along this thread, you’ll learn how to do that.

2. Filters

Filters might be more important than ever.

In today’s world, we are overwhelmed with information.

If we listened to every opinion shared on social media, we would be more confused than before.

If we would analyze every stock out there, we would likely never find an opportunity because we research too much waste.

So you need filters.

What opinions do you want to spend your time with?

What companies do you want to spend your time with?

3. Crush Your Most Cherished Believes

“It isn’t the learning that’s so hard, it’s the unlearning.”

Just because you believe something for years doesn’t mean it’s true.

And it’s the truth you should thriving for.

Not being right.

As soon as you hear contradicting evidence to one of your believes, write it down.

If you don’t, your mind will persuade itself in a matter of hours that the evidence is just a lie.

Then, another chance to find the truth passed.

4. Simplicity

“Take a simple idea and take it seriously.”

Most things in life are ridiculously simple.

We just make them hard for no reason.

Here’s an example (for once, not investment-related):

If you want to lose fat, the only way is a calorie deficit.

Instead, there is a whole industry creating hundreds of different diets.

Why? Because they sell better.

Reminds me of Charlie saying that what they say is all you need to know, but it wouldn’t sell books or magazines.

These were the first four models. Many will follow in the next few weeks.

If you don’t want to miss them, consider following me @MnkeDaniel

You would also help me greatly by Retweeting and Liking this Thread.

Thank you very much!

What Mental Model helped you the Most?

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