by Taz | Aug 1, 2021 | Mental Models
The Circle of Competence is a concept that has helped investors like Charlie Munger and Warren Buffet get to where they are today. So, what is the Circle of Competence? It’s simply knowing what you’re good at and knowing what you’re not good at. If it sounds obvious,...
by Taz | Jun 9, 2021 | Cognitive Biases, Mental Models, Thinking Tools
What is the Dunning-Kruger effect? To put it simply, it’s the correlation of excess confidence to limited knowledge. It also shows a correlation for lower confidence in more capable people. Ironically, people overestimate their knowledge about the Dunning-Kruger...
by Taz | Apr 13, 2021 | Mental Models, Thinking Tools
Inversion is probably one of the most important mental models you can learn, not because of what it can help you do, but because of what it can help you avoid. Inversion looks at a problem backward, asking the opposite of what it is you’re trying to achieve. If you...
by Taz | Jan 24, 2021 | Mental Models, Thinking Tools
“Patients can have as many diseases as they damn well please.” John Hickam Occam’s Razor implies that the simplest answer is usually the correct one. This is often not the case in the medical profession. The body is a complicated organism with a lot of moving...
by Taz | Nov 11, 2020 | Economics, Mental Models, Psychology
The lipstick effect defies what most people would come to expect during an economic downturn. The theory states that during a recession, the sales for lipstick nearly always increase. This has been shown in many cases, and it continues to perplex economists. A few...
by Taz | Sep 24, 2020 | Mental Models, Thinking Tools
“When technology moves as fast as it does in a civilization like ours, you get a phenomenon which I call competitive destruction. You know, you have the finest buggy whip factory and all of a sudden in comes this little horseless carriage. And before too many years go...
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