Reading Time: 2 min The next mental model on my list is base rates. Simply put, when trying to determine the probability of an event happening, you should start at a level where you pretend no other information is available. Further, even if more information is available, you’re still best off to establish the base rate first, and then […]
Mental Models
Advantages of Scale
Reading Time: 2 min First on our list of mental models is the concept of advantages of scale. In short, it’s the idea that as a company grows and does more of the same type of work, it can do that work more efficiently and lower their costs quite a lot. A great example of this is Amazon. Because […]
The 21 Mental Models
Reading Time: 2 min Mental models can be a great way to help understand the world. Rather than just memorizing facts, which also can be important, mental models provide a way to tie ideas together so you can quickly make sense of new situations. Charlie Munger is perhaps the most well-known person that thrives on mental models, and he […]