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Mental Models 101

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Mental Models 101

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1. Inversion

Evolution by natural selection was once called "the greatest idea anyone ever had." In the 19th century - Charles Darwin and Alfred Russel Wallace simultaneous realized that species evolve through random mutation and differential survival rates. If we call human intervention in animal-breeding an example of "artificial selection - " we can call Mother Nature deciding the success or failure of a particular mutation "natural selection." Those best suited for survival tend to be preserved. But of course - conditions change.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

2. First-Conclusion Bias

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Evolution by natural selection was once called "the greatest idea anyone ever had." In the 19th century - Charles Darwin and Alfred Russel Wallace simultaneous realized that species evolve through random mutation and differential survival rates. If we call human intervention in animal-breeding an example of "artificial selection - " we can call Mother Nature deciding the success or failure of a particular mutation "natural selection." Those best suited for survival tend to be preserved. But of course - conditions change.

3. Algorithms

4. Evolution by Natural Selection

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Evolution by natural selection was once called "the greatest idea anyone ever had." In the 19th century - Charles Darwin and Alfred Russel Wallace simultaneous realized that species evolve through random mutation and differential survival rates. If we call human intervention in animal-breeding an example of "artificial selection - " we can call Mother Nature deciding the success or failure of a particular mutation "natural selection." Those best suited for survival tend to be preserved. But of course - conditions change.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

5. Irreducibility

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."We find that in most systems there are irreducible quantitative properties - such as complexity - minimums - time - and length. Below the irreducible level - the desired result simply does not occur. One cannot get several women pregnant to reduce the amount of time needed to have one child - and one cannot reduce a successfully built automobile to a single part. These results are - to a defined point - irreducible.

6. Pareto Principle

Named for Italian polymath Vilfredo Pareto - who noticed that 80% of Italy's land was owned by about 20% of its population - the Pareto Principle states that a small amount of some phenomenon causes a disproportionately large effect. The Pareto Principle is an example of a power-law type of statistical distribution - as distinguished from a traditional bell curve - and is demonstrated in various phenomena ranging from wealth to city populations to important human habits.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

7. Pavlovian Mere Association

Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Ivan Pavlov very effectively demonstrated that animals can respond not just to direct incentives but also to associated objects; remember the famous dogs salivating at the ring of a bell. Human beings are much the same and can feel positive and negative emotion towards intangible objects - with the emotion coming from past associations rather than direct effects.

8. Emergence

Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."Higher-level behavior tends to emerge from the interaction of lower-order components. The result is frequently not linear - not a matter of simple addition - but rather non-linear - or exponential. An important resulting property of emergent behavior is that it cannot be predicted from simply studying the component parts.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.

9. Renormalization Group

While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."The renormalization group technique allows us to think about physical and social systems at different scales. An idea from physics - and a complicated one at that - the application of a renormalization group to social systems allows us to understand why a small number of stubborn individuals can have a disproportionate impact if those around them follow suit on increasingly large scales.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.

10. Second-Order Thinking

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.In all human systems and most complex systems - the second layer of effects often dwarfs the first layer - yet often goes unconsidered. In other words - we must consider that effects have effects. Second-order thinking is best illustrated by the idea of standing on your tiptoes at a parade: Once one person does it - everyone will do it in order to see - thus negating the first tiptoer. Now - however - the whole parade audience suffers on their toes rather than standing firmly on their whole feet.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

11. Opportunity Costs

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Doing one thing means not being able to do another. We live in a world of trade-offs - and the concept of opportunity cost rules all. Most aptly summarized as "there is no such thing as a free lunch."Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

12. Falsification / Confirmation Bias

What a man wishes - he also believes. Similarly - what we believe is what we choose to see. This is commonly referred to as the confirmation bias. It is a deeply ingrained mental habit - both energy-conserving and comfortable - to look for confirmations of long-held wisdom rather than violations. Yet the scientific process - including hypothesis generation - blind testing when needed - and objective statistical rigor - is designed to root out precisely the opposite - which is why it works so well when followed.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

13. Relative Satisfaction/Misery Tendencies

The envy tendency is probably the most obvious manifestation of the relative satisfaction tendency - but nearly all studies of human happiness show that it is related to the state of the person relative to either their past or their peers - not absolute. These relative tendencies cause us great misery or happiness in a very wide variety of objectively different situations and make us poor predictors of our own behavior and feelings.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.

14. Availability Heuristic

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.One of the most useful findings of modern psychology is what Daniel Kahneman calls the Availability Bias or Heuristic: We tend to most easily recall what is salient - important - frequent - and recent. The brain has its own energy-saving and inertial tendencies that we have little control over - the availability heuristic is likely one of them. Having a truly comprehensive memory would be debilitating. Some sub-examples of the availability heuristic include the Anchoring and Sunk Cost Tendencies.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.

15. Arbitrage

Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Given two markets selling an identical good - an arbitrage exists if the good can profitably be bought in one market and sold at a profit in the other. This model is simple on its face - but can present itself in disguised forms: The only gas station in a 50-mile radius is also an arbitrage as it can buy gasoline and sell it at the desired profit (temporarily) without interference. Nearly all arbitrage situations eventually disappear as they are discovered and exploited.

16. Bell Curve/Normal Distribution

While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.The normal distribution is a statistical process that leads to the well-known graphical representation of a bell curve - with a meaningful central "average" and increasingly rare standard deviations from that average when correctly sampled. (The so-called "central limit" theorem.) Well-known examples include human height and weight - but it's just as important to note that many common processes - especially in non-tangible systems like social systems - do not follow the normal distribution.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

17. Replication

A fundamental building block of diverse biological life is high-fidelity replication. The fundamental unit of replication seems to be the DNA molecule - which provides a blueprint for the offspring to be built from physical building blocks. There are a variety of replication methods - but most can be lumped into sexual and asexual.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."

18. Incentives

Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.All creatures respond to incentives to keep themselves alive. This is the basic insight of biology. Constant incentives will tend to cause a biological entity to have constant behavior - to an extent. Humans are included and are particularly great examples of the incentive-driven nature of biology; however - humans are complicated in that their incentives can be hidden or intangible. The rule of life is to repeat what works and has been rewarded.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.

19. Margin of Safety

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.Similarly - engineers have also developed the habit of adding a margin for error into all calculations. In an unknown world - driving a 9 - 500-pound bus over a bridge built to hold precisely 9 - 600 pounds is rarely seen as intelligent. Thus - on the whole - few modern bridges ever fail. In practical life outside of physical engineering - we can often profitably give ourselves margins as robust as the bridge system.

20. The modern scientific enterprise operates under the principle of falsification: A method is termed scientific if it can be stated in such a way that a certain defined result would cause it to be proved false. Pseudo-knowledge and pseudo-science operate and propagate by being unfalsifiable - as with astrology - we are unable to prove them either correct or incorrect because the conditions under which they would be shown false are never stated.

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Circle of Competence (a)idea introduced by Warren Buffett and Charles Munger in relation to investing: each individual tends to have an area or areas in which they really - truly know their stuff - their area of special competence. Areas not inside that circle are problematic because not only are we ignorant about them - but we may also be ignorant of our own ignorance. Thus - when we're making decisions - it becomes important to define and attend to our special circle - so as to act accordingly.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.

21. Default Status

Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.The USCB ecologist/economist Garrett Hardin once said that "The scientific mind is not closed: it is merely well-guarded by a conscientious and seldom sleeping gatekeeper." The way it does that is with the concept of the default status: The "resting position" of common sense - whereby the burden of proof falls on assertions to the contrary. Given the problem of opportunity costs and limited time and energy - a default status is nearly always necessary to avoid wasting time. Examples include the laws of thermodynamics - the law of natural selection - and the incentive-caused bias.

22. Hanlon's Razor

Harder to trace in its origin - Hanlon's Razor states that we should not attribute to malice that which is more easily explained by stupidity. In a complex world - this principle helps us avoid extreme paranoia and ideology - often very hard to escape from - by not generally assuming that bad results are the fault of a bad actor - although they can be. More likely - a mistake has been made.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.

23. Language Instinct

The psychologist Steven Pinker calls our DNA-level instinct to learn grammatically constructed language the Language Instinct. The idea that grammatical language is not a simple cultural artifact was first popularized by the linguist Noam Chomsky. As we saw with the narrative instinct - we use these instincts to create shared stories - as well as to gossip - solve problems - and fight - among other things. Grammatically ordered language theoretically carries infinite varying meaning.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.

24. Bias from Incentives

Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."Highly responsive to incentives - humans have perhaps the most varied and hardest to understand set of incentives in the animal kingdom. This causes us to distort our thinking when it is in our own interest to do so. A wonderful example is a salesman truly believing that his product will improve the lives of its users. It's not merely convenient that he sells the product; the fact of his selling the product causes a very real bias in his own thinking.Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.

25. Leverage

Charlie Munger famously pointed out - the mind works a bit like a sperm and egg: the first idea gets in and then the mind shuts. Like many other tendencies - this is probably an energy-saving device. Our tendency to settle on first conclusions leads us to accept many erroneous results and cease asking questions; it can be countered with some simple and useful mental routines.Otherwise known as thinking through a situation in reverse or thinking "backwards - " inversion is a problem-solving technique. Often by considering what we want to avoid rather than what we want to get - we come up with better solutions. Inversion works not just in mathematics but in nearly every area of life. As the saying goes - "Just tell me where I'm going to die so I can never go there."Most of the engineering marvels of the world have been accomplished with applied leverage. As famously stated by Archimedes - "Give me a lever long enough and I shall move the world." With a small amount of input force - we can make a great output force through leverage. Understanding where we can apply this model to the human world can be a source of great success.While hard to precisely define - an algorithm is generally an automated set of rules or a "blueprint" leading a series of steps or actions resulting in a desired outcome - and often stated in the form of a series of "If â†’ Then" statements. Algorithms are best known for their use in modern computing - but are a feature of biological life as well. For example - human DNA contains an algorithm for building a human being.

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❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

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Without work one finishes nothing. - Ralph Waldo Emerson
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