Mental Model Inventory

  1. Inversion (Thinking Backwards) Instead of asking “How do I succeed?” ask “How do I fail?” and avoid those mistakes.

    • Example: If you want to live a good life, avoid regret—don’t ignore health, relationships, or lifelong learning.

  2. Occam’s Razor The simplest explanation is usually the best.

    • Example: If you hear hoofbeats, think horses, not zebras (unless you’re in Africa).

  3. Hanlon’s Razor Never attribute to malice what can be explained by incompetence or ignorance.

    • Example: That rude email probably wasn’t personal, the sender might just be stressed.

  4. Second-Order Thinking Always consider the longer-term consequences beyond the immediate result.

    • Example: Rent control helps tenants short-term but may reduce housing supply long-term.

  5. Compounding Effects Small, consistent actions over time create massive long-term results.

    • Example: Reading 10 pages a day equals 12+ books a year.

  6. Circle of Competence Know what you know, and don’t pretend expertise where you have none.

    • Example: If you don’t understand cryptocurrency, don’t invest in it.

  7. The 80/20 Rule (Pareto Principle) 80% of results come from 20% of causes, so focus on the highest-leverage activities.

    • Example: 20% of customers often drive 80% of revenue.

  8. First Principles Thinking Break problems down to their most basic elements and build up from there.

    • Example: Instead of assuming existing car battery costs, Tesla rethought material sourcing to lower prices.

  9. The Red Queen Effect To stay ahead, you must keep improving just to maintain your position.

    • Example: If you’re not learning new skills, you’re falling behind.

  10. Game Theory Some games are about beating the opponent, others are about growing the pie.

    • Example: A company’s success isn’t about crushing competition but creating new value.