TIP740: The Great Mental Models Part 1
We Study Billionaires - The Investor’s Podcast Network
Intro
This chapter explores the significance of mental models in enhancing thinking and decision-making processes. Through the introduction of key concepts and personal stories, it demonstrates how these models can be applied to navigate challenges in life, business, and investing.
On today’s episode, Kyle Grieve discusses the power of mental models, how they sharpen our thinking, and how they improve our decision-making in investing and everyday life. He explores various key concepts in general thinking, including the circle of competence, inversion, first-principles thinking, probabilistic thinking, and more.
IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 02:01 - What exactly are mental models? 04:37 - The three failures people have with interacting with reality. 08:43 - A simple 6-step framework for making mentals into a habit. 17:45 - How to utilize what you already know to gain an edge. 29:40 - The importance of thinking in first principles to improve your ability to innovate and simplify. 36:10 - How to use thought experiments to analyze a business. 41:14 - Why using second-order thinking can rapidly enhance your quality of thinking. 49:46 - How probabilistic thinking helps make sense of a dynamic world. 58:54 - Why spending time thinking about a problem backwards can improve your upside. 01:04:57 - Why you should focus on simple solutions over complex ones. And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
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- Buy a copy of The Great Mental Models Vol. 1 here.
- Read Shane Parrish’s blog here here.
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