Inversion
Instead of asking how to succeed, ask how to fail — then avoid those things. Munger's favorite mental trick turns hard forward problems into easy backward ones.
Charlie Munger's premise: you can't really know anything if you just remember isolated facts. They have to hang together on a latticework of models drawn from many disciplines — and the models interact, so you have to hold more than one at a time.
This site is a curated collection of those models — concise explanations, real examples, and where the ideas connect. It's a starting latticework; the point is to keep adding to it.
Instead of asking how to succeed, ask how to fail — then avoid those things. Munger's favorite mental trick turns hard forward problems into easy backward ones.
Charlie Munger's catalog of 25 psychological tendencies that quietly distort human judgment, drawn from his talk "The Psychology of Human Misjudgment." Recognizing them is the first defense against manipulation and self-deception.
A system's outputs loop back as its own inputs, creating cycles that either amplify change or pull things back to equilibrium. Learning to spot positive and negative feedback loops sharpens decisions in markets, learning, and strategy alike.
Eugene Schwartz's five-stage framework for how much a customer already knows, from completely unaware to ready to buy. Matching your message to the right stage is what turns a campaign into a conversion engine.
Before assuming bad intent, consider ignorance, stress, or an honest mistake instead. Defaulting to the more charitable explanation defuses unnecessary conflict and keeps relationships intact.
Stick to what you actually understand, and know precisely where that understanding runs out. Operating inside your circle of competence sharpens decisions and keeps you out of costly, avoidable mistakes.
Between competing explanations, the one requiring the fewest assumptions is usually the better bet. Simplicity makes an idea easier to test and trust, though it's no guarantee that reality will actually cooperate.
Four traits let a single company come to dominate a market — proprietary technology, network effects, economies of scale, and brand. Building toward one or more of them is a deliberate strategy, not an accident.
Simple software is easier to understand, harder to break, and easier to maintain than software optimized purely for features or speed. When a problem grows complex, the fix is usually breaking it into smaller, simpler ones.