12 Mental Models To Make You Smarter

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12 Mental Models Will Make You Smarter Than 99% Of People By Kenny Of Accent Investing

1) Occam’s Razor
Simplicity is a virtue. When faced with competing explanations, the one with the fewest assumptions is likely the correct one.

Streamline problem-solving by stripping away unnecessary complexities. Seek elegant solutions that require the fewest steps.

2) Black Swan Theory
Be aware that highly improbable and unpredictable events can have a massive impact.

Prepare for uncertainty, and be adaptable.

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3) Pareto Principle (80/20 Rule)
Roughly 80% of effects come from 20% of causes. Focus on the vital few, as they often contribute the most to your goals.

Concentrate on what truly matters to maximize efficiency and impact.

4) First Principles of Thinking
Break down complex problems into their fundamental components to better understand and solve them. Elon Musk often employs this approach.

Sometimes, you need to challenge assumptions. Rethink problems by understanding their basic elements.

5) Inversion
Solve problems by thinking backward.

Instead of focusing on how to achieve success, consider what might lead to failure and work to mitigate those factors.

6) Circle of Competence:
Understand the limits of your knowledge and expertise.

Focus on what you know well and continually expand your circle of competence.

7) Confirmation Bias
We tend to favor information that confirms our existing beliefs. Actively seek out opposing viewpoints to make more balanced judgments.

Challenge your own biases. Deliberately expose yourself to diverse perspectives to make more informed choices.

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8) Hindsight Bias
Remember that events seem obvious after they’ve occurred.

Be humble about predicting outcomes, and consider how things might have turned out differently.

9) Zero-Sum Thinking
Not every situation is win-lose.

Strive for win-win solutions, as cooperative approaches often lead to better long-term outcomes.

10) The Map is Not the Territory
Your mental model of reality is not reality itself.

Be open to updating your models based on new information and experiences.

11) Parkinson’s Law
Work expands to fill the time available for its completion.

Set deadlines to maintain focus and efficiency.

12) Law of Diminishing Returns
Recognize that there’s a point at which the benefits gained from additional efforts or resources start to decline.

Be mindful of when to stop and reassess your approach.

If you enjoy this piece, you can lookout for more of his content here and also follow Kenny on X @AccentInvesting

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Media enthusiast and music lover on a journey to becoming a global media mogul. I am taking it a step at a time.

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