Mental Models

"What is elementary, worldly wisdom? Well, the first rule is that you can’t really know anything if you just remember isolated facts and try and bang ’em back. If the facts don’t hang together on a latticework of theory, you don’t have them in a usable form. You’ve got to have models in your head. And you’ve got to array your experience — both vicarious and direct — on this latticework of models. (...) What are the models? Well, the first rule is that you’ve got to have multiple models — because if you just have one or two that you’re using, the nature of human psychology is such that you’ll torture reality so that it fits your models, or at least you’ll think it does. (...) And the models have to come from multiple disciplines — because all the wisdom of the world is not to be found in one little academic department." -Charlie Munger, A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business​
Last modified 2yr ago