The project starts with five reference books that cover the core, time. Learn how charlie mungers system of mental models helped the contrarian. Some of you have asked if i would be willing to share my list of models. Think mental models pdf inductive reasoning strategic. Better to read munger bookarticles and buy influence book by robert ciadini. Mar 31, 2018 here is an excellent articleblog on compilation of mental models of charlie munger 1 models as of today. Johnsonlaird1 department of psychology, princeton university, princeton, nj 08540 this contribution is part of the special series of inaugural articles by members of the national academy of sciences elected in 2007. Charlie munger and the latticework of mental models. I begin building mental models around maps very early in the year. What are the 100 mental models mentioned by charles munger. To quote charlie munger, 80 or 90 important models will carry about 90% of the freight in. A well written, succinct and useful collection of ideas about business, life, success and happiness all encapsulated in the mental model of mental models after getting half way i found it a little repetitive, but struggled to the end and continued to learn some things. Get ebooks the great mental models volume 2 on pdf, epub, tuebl, mobi and audiobook for free.
When youre thinking of productmarket fit, youre using one. He believes that it is through the application of models in a varied range of settings in life that genuine learning takes place. In fact he credits mental models for his unusually sharp understanding of the world. A dozen things ive learned from charlie munger about mental. Charles munger, in poor charlies almanack, describes the concept. To fix that, below is a link to the checklist ive been using for many years now. Jan, 20 audio of the often referred to speech by charlie munger on the psychology. The top 100 mental models inspired by charlie munger rob kelly. Mental models have become top of mind in the sv community and its associated thought leaders, from farnham street, naval, tim ferriss, patrick collison and many others regularly talking about them and their creators such as buffet munger kahneman etc. The great mental models volume 2 ebook download free pdf. Broadly, here is what munger has to suggest you when it comes to creating your own latticework of mental models have many tools in your mental tool bag. This website, inspired by the work of charles munger, provides over 100 models that can be brought consciously to mind to aid the thinking process. Mental models, investing, and you special ebook according to mr.
In a speech that munger gave at usc business school in 1994, he started to delve into this idea of a latticework of mental models. Munger points out that if you dont master the multidisciplinary approach of such mental constructs, you will remain in the middle ranks or shallows in life. Mental models challenging them for better understanding. From darwin to munger, written by the swedish investor peter bevelin. The munger network of mental models 23 page article. According to charlie munger, its important to have a latticework of mental models with which to hang your ideas and. Charlie munger refers to a latticework of about 100 mental models that he and warren. I first stumbled on mental models when i was reading the work of charlie munger, the selfmade billionaire partner of warren buffett. He has a list of these ideas mental models in his mind and quickly picks the ones applicable to the given situation, much as a pilot automatically goes through a checklist prior to takeoff. I first learnt about mental models from reading about warren buffetts business partner charlie munger and who bill gates called the broadest thinker hes ever encountered. Since this post came out, i coauthored a book about it called super thinking. The psychology of human misjudgement charlie munger full.
Each idea is a concept or model about how the world really works that can. Munger uses the term lollapalooza effect for multiple biases, tendencies or mental models acting in compound with each other at the same time in the same direction. Mental models give you a deep understanding of peoples motivations and thoughtprocesses, along with the emotional and philosophical landscape in which they are operating. One of the best ways to do this is to expand the set of mental models you use to think. Munger, vice chairman of berkshire hathaway, is warren buffetts partner at. Maps are mental models that will continue to develop, change, and help them plan and problem solve for the rest of their lives. Influence by cialdini gives persuasion related mental models, but this list isnt about that, this list is specifically books. How to train your brain to think in new ways this article shares some useful examples of how mental models work and how the right mental model can make a big difference. Download it once and read it on your kindle device, pc, phones or tablets.
And by that i specifically mean books that talk about mental models from a variety of disciplines. Mental models embrace anything from looking up a part number online to asking the guy at the hardware store how to mix epoxy. Poor charlies almanack is a collection of charlie mungers best advice given over 30 years, in the form of 11 speeches given as commencement addresses and roundtable talks. Always update books hourly, if not looking, search in the book search column. Dec 30, 2008 the subject of the speech was what munger called worldly wisdom. This made me realize that i had a site that talks about mental models but that doesnt actually list the models i use. In this summary of poor charlies almanack, ive extracted the most important points. Have a system and follow it, checklist style look at a problem rationally, then look for the subconscious influences.
Unfortunately thinkmentalmodels pdf lacks any originality. Apr 01, 2018 the mental models approach helps you understand reality. Mental models are what charlie munger refers to the key ideas in each discipline. The top 100 mental models inspired by charlie munger rob. There are more than 1 million books that have been enjoyed by people from all over the world. There are obviously positive aspects to this tendency for society, but they rarely have place in making investment decisions. Jun 06, 2017 this is what charlie munger talks about the latticework of mental models. The best ones mental models apply broadly to life and can help you. Let me explain what i mean by sharing a story about a worldclass thinker. Life lessons, success, principles and mental models from a titan of finance kindle edition by thorniley, dave. Aug 22, 2015 rather than just knowing the names of various mental models, charlie munger is very focused on acquiring a deep understanding of these models so they can help him better understand the world. And when you understand things at a deeper level you make better decisions. Peter bevelin on seeking wisdom, mental models, learning, and a lot more reading time.
The great mental models is a project by fs to help equalize opportunity in the world by making a highquality multidisciplinary education free and available to everyone. To be fair, super thinking doesnt attempt to cover every aspect of life, only mental models, but it feels similarly ambitious and dizzying. An overview of 3 proven mental models that you can implement in your work right now and how to make mental models part of your daily routine. In a famous speech in the 1990s, charlie munger summed up the approach to practical wisdom through understanding mental models by saying. However, he has given us some valuable tips in his speeches and writings about how he uses modeling. Theyve even developed a famous checklist they use to assess every investment opportunity. Munger and buffett have spent decades accumulating mental models. Munger suggested that we all need a set of mental models at our disposal, and that we should apply these models to understanding and evaluating our experiences and circumstances. Peter bevelin on seeking wisdom, mental models, learning, and. Mental models i find repeatedly useful gabriel weinberg. Poor charlies almanack by charlie munger book summary and pdf. Charlie munger and his mental models decoding markets. Have a system and follow it, checklist style look at a problem rationally, then. Focus investors should develop their own systems of mental models to help them make better investment decisions.
Munger, there are about 100 or so models across the disciplines of microeconomics, physiology, psychology, elementary mathematics, hard science and engineering that carry about 90% of the freight in making you a worldlywise person. But finding all of their mental models listed in one place is impossible. Get the entire 10part series on walter schloss in pdf. Next steps there are some outstanding resources for learning about mental modeling, including this guide from farnham street and this writeup by annelaure le cunff at ness labs. Charlie munger has spoken a lot about mental models and their use in thinking better. Charlie munger refers to a latticework of about 100 mental models that he and warren buffett credit for their successful investing. How warren buffetts billionaire deputy at berkshire hathaway. It contains more than 300 models an aver back in the late 1980s, i stumbled across a book entitled cultural literacy. Here is what charlie munger on the importance of mental models in our lives you must know the big ideas in the big disciplines, and use them routinely all. With the lollapalooza effect, itself a mental model, the result is often extreme, due to the confluence of the mental models, biases or tendencies acting together, greatly. In it, munger argues that you should learn lots of mental models from a large selection of disciplines, and then use that to provide context and colour to your. The best way to make intelligent decisions 1 models explained i also stumbled upon a document consisting of the best of charlie munger from 1994 to 2011.
Please keep the comments in the context of our goal for the project found here. And i think to some extent, before you are going to be a great stock picker, you need some general education. May 5, 1995 the theory of modern education is that you need a general education before you specialize. Ive since learned that other selfmade billionaires like elon musk, jeff bezos, and ray dalio use mental. If the facts dont hang together on a latticework of theory, you dont. The top 100 mental models inspired by charlie munger. Munger has never laid out the specific list of mental models he relies on. The phrase latticework of mental models comes from berkshirehathaways charles munger, who is a person that has spent most of his life working out ways to, for lack of a better term, think better munger has come to the conclusion that in order to make better decisions in business and in life, you must find and understand the core. Munger is pointing out that people tend to ignore or deny the faults of people they love and even distort facts to facilitate that love.
A list of top 100 mental models for business by rob d. May 11, 2018 charlie munger has spoken a lot about mental models and their use in thinking better. A framework for putting mental models to practice, part 1. Munger, there are about 100 or so models across the disciplines of microeconomics, physiology, psychology, elementary mathematics, hard science and engineering that carry about. Its his secret weapon for making decisions, succeeding in business, and choosing winning investments. Mar 20, 2017 in a speech that munger gave at usc business school in 1994, he started to delve into this idea of a latticework of mental models. One of the most important consequences of incentive superpower is what i. Mental models introduction youve got to have models in your head and youve got to array your experience both vicarious and direct onto this latticework of mental models.
In all his talks, he shows wit, rationality, and incredible clarity of thought. Social studies is another subject where mental models help us with map reading, locations on a globe or map, time lines, and understanding past and future. A dozen things ive learned from charlie munger about mental models and worldly wisdom. In the following section of this article the various individual areas of knowledge that mr. You look at things through a different lens to try to see what can be different mohnish pabrai you have to be naturally interested and curious about everything any kind of businesses, politics, science, technology, humanities, history, poetry, literature. There are thousands of mental models, but the best ones apply broadly to life and are useful in a wide range of situations. Influence by cialdini gives persuasion related mental models, but this list isnt about that, this list is specifically books that are focused on covering a broad array of mental models. I first discovered what a mental model was and how useful the right one could be while i was reading a story about richard feynman, the. The phrase latticework of mental models comes from berkshirehathaways charles munger, who is a person that has spent most of his life working out ways to, for lack of a better term, think better. Charlie mungers unique approach to being an expertgeneralist developing the habit of mastering the multiple models which underlie reality is the best thing you can do.
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