THREAD: 5 powerful mental models to help you win in a competitive world.

In investing, business, startups, writing, or life...
First Principles Thinking

“The first basis from which a thing is known.”

Establish foundational truths. Build from there.

In a world of unimaginative, copycat solutions, leveraging first principles thinking is key to achieving non-linear outcomes.
Second-Order Thinking

“And then what?”

Look past the first-order effects of a decision. Deeply examine the second, third, and N-th order effects.

It will lead to asymmetric opportunities and non-linear outcomes.
Circle of Competence

Know what you know and what you don’t.

Identify your circle and its boundaries. Be ruthless in protecting it.

Hint: it’s usually smaller than you think.
Occam’s Razor

Simple is beautiful.

When weighing alternative hypotheses, the one with the fewest necessary assumptions should be chosen.

The Eighth Wonder of the World.

All of the greatest gifts in life are a direct result of compound interest.

Get it started. Do not interrupt it. Reap the rewards.
If you enjoyed this, follow me for more educational threads on business, money, finance, and economics. You can find all of my threads in the meta-thread below.
You can follow @SahilBloom.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:

By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.