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. https://twitter.com/sahilbloom/status/1329458583537397765
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. https://twitter.com/sahilbloom/status/1342126994683617280
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. https://twitter.com/sahilbloom/status/1346849999405993984
Occam’s Razor

Simple is beautiful.

When weighing alternative hypotheses, the one with the fewest necessary assumptions should be chosen. https://twitter.com/sahilbloom/status/1326895385445593088
Compounding

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. https://twitter.com/sahilbloom/status/1306627924561338370
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