Charlie Munger Mental Model: How to Reverse Problem Solving.

Unlike simple algebra, the problem of life has multiple right solutions. Our task is simply to avoid the wrong decision. That is the idea of Charlie Munger’s mental model.

And it is simply applicable to almost life aspects.

Instead of choosing the best decision we never know, we simply eliminate the terrible one.

In investing, you don’t need to choose the best stock or the most stellar company. You just need not invest in bad companies.

In a career, just follow your school, finish your education, make a side hustle, find work, and build a small business as an additional income resource. A dropout entrepreneur is not on our recommendation list. Not all people will be Albert Einstein, Galileo, or Bill Gates.

THE TEAM PLAY

The NBA play does not represent the Mental Model. If I have Giannis Antetokounmpo as my power forward mate, I have no worry about firing my three-point since I know Giannis will win the aerial duel. Or, If I’m Lionel Messi, I do not worry about dribbling into the opponent’s defense since my team will cover my loose ball.

In life, we can’t rely on that. A mental model is avoiding trouble. firing 3 points or delivering a solo run is a performance. Nice looks. Cool, impressive. But risky. The mental model avoids the risk.

Read more about this topic for investing here.