Mental Models In A Nutshell

Summary

What would you do if there was a tool to help you make better decisions in less time? You'd jump at the chance, wouldn't you?

Mental models help you filter information, which allows you to see things more clearly and make better decisions.

Mental models are also a shortcut to finding the quickest and the best route to solve your problems, whether work-related or personal.

The beauty of mental models is that their variety is virtually infinite, and they help you come up with solutions for just about any issue.

So you're thinking about opening a business. You're not sure what kind of business will be best. The law of Supply and Demand can help. It dictates that companies provide the goods and services demanded by the public. The most profitable companies are those that do this best.

Armed with this knowledge, you can now narrow down your options considerably.

"Developing the habit of mastering the multiple models that underlie reality is the best thing you could do," according to Charlie Munger, who credits his success to the lifetime cultivation of a "latticework" of mental models on which to frame his decisions.

The problem with the average person's mental models is that most are not designed to handle complexity.

And while the conscious use of mental models is possible, they require higher-order thinking skills that few people engage in for various reasons. But that doesn't have to be you!

Inside you'll find:

• How mental models declutter your thinking and stimulate decision-making (warning: immediate impact on 4 cognitive processes!)


• The Master List of mental models (including the best two used by Munger)


• 3 characteristics that help you to spot an excellent mental model


• Why we don't use mental models and what we tend to do instead


• How to make your mental toolkit resemble a Swiss army knife in 5 steps