Buffet and Munger are aiming for no brainer decisions. They never want to operate so that they're even close to the out of bounds lines right. When something appears that seems to check all those boxes you can lean into it in a big way. If you stack up enough high probability things you'll get a really low probability if they all have to occur.
Read the full transcript here.
What is a mental model? What are "the three buckets"? How can Galilean relativity and alloying apply to non-science parts of life? What is the goal-gradient hypothesis? Why is it useful to know about signalling, especially in a social context? How can the concept of marginal safety apply outside of investing? More generally, why should people learn about mental models?
Blas Moros is writer, thinker, and entrepreneur. He's the CEO of Frontier and the founder of Latticework. Find more about him at blas.com, or follow him on Twitter at @blasmoros.
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