Mental models of the famous investor and best friend Warren Buffett in the material of the Reminder edition.
In its 97 years, the famous American investor Charlie Manbon is held by the Vice-Chairman of the Board of Directors of the Giant Company Warren Buffetta Berkshire Hathaway, heads the Publishing House Daily Journal and enters the board of directors of a large network of Costco retail stores. And the personal state of Manga, according to Forbes, exceeds $ 2 billion.
How did he manage to achieve such success? He has his approach: Manbon makes conclusions and makes decisions based on the aggregate of a variety of mental models, or "big ideas" taken from different disciplines: physics, biology, psychology, economics, rights, philosophy and others.
"It seems to me an indisputable statement that the brain operates with the help of models - explains Manger. "Therefore, if you want your brain to work better than others, you need to learn fundamental mental models - they will make the main work."
To use "big ideas" effectively, you need to build from them, on the terminology of Manga, "Menantal Model Network". "With the help of this system, the world will gradually work out in a fully qualified picture," he says.
And as a result, you will gain superpowers - you will begin to think faster and more accurately. At least, Warren Buffet confirms that Manbon it is possible: "Charlie is enough 30 seconds to pass the way from A to I [from the background before the output]. He understands that you are talking to him, even before you finish the phrase. "
Three mental models Charlie Manbon
Manger never led a complete list of mental models that form his network. But often mentions some of them.Occam's razorThis is the principle called in honor of the medieval German philosopher William Okkam, who wrote in one of his works: "What can be done on the basis of a smaller number of [assumptions], should not be done based on more."
Simplified the thesis is interpreted as follows: "If there are several logically consistent and equally good explanations of any phenomenon, you should choose the simplest of them." Manger considers it an excellent example of a fundamental mental model.
"[Use Okkam Razor] it's like to offer a fisherman fishing where the fish is found," he says. Taking over with any task, any problem, you need to look for the easiest answer - this will avoid unnecessary errors and save forces. "We strive for simplicity. If something is too complicated, we go to something else. What could be easier? " - says Manger.
InversionManganger - fan of mathematics. He even studied her at the university. It is not surprising that one of his favorite mental models is a mathematical method of inversion.
In the usual - not mathematical - Manther's life offers to use it like this: facing some task, try to deploy it, look at it from the end. Let's say if you want to achieve something, look for not the surest way to do this, but what can prevent you and make a maximum of effort to avoid it.
"During World War II, I worked as a meteorologist, I made synoptic maps to predict its changes, the example of Manganger. - These cards needed to understand: is it possible to give a pilot permission to take off [or because of weather conditions it is too dangerous].
But I turned the task as the ass in advance. I asked myself a question: "And how can I handle how more pilots as possible?" And quickly determined: the best way is to make the plane hit the conditions in which it is icing and becomes unmanageable. Another way is to send a plane to such a place where he will not be able to make a safe landing when he will end fuel.
So I understood: if I want to keep the pilots of life [ namely, the synoptic maps were ultimately needed to be needed, one should not allow neither the first or second. I think, thanks to this, I began to cope with the duties of the meteorologist much better. In the same way, if someone hits me to solve the problems of India, I will first think about it, and what I have to do to make as much as possible - and faster - to harm this country - and I will try to prevent these dangers. "
Circle competenceFor the first time, this mental model was formulated by Warren Buffett, speaking to investors in 1996. He said then the following: "[To be a good investor], it is not necessary to be an expert in what all companies are engaged in the world. The main thing is to be able to evaluate those companies that enter your terms of competencies. How wide is this circle, it does not matter much. But it is critical to know where his borders pass. "
Manger with a partner agrees: one of the main components of their success is a clear understanding of what exactly they really understand what they know and what they know - and what are not very good. Acting in the circle of their competencies, you seek the best results and make less mistakes.
Recognize the boundaries of our own opportunities - the task is not easy: people tend to overestimate themselves. But Manger strongly advises to do it. "You will be delivered to those surrounding serious trouble until you find out where your capabilities end. And do not accept, "he says. But having completed, you will significantly increase your chances of success.
How to create a network of mental models?
Engage in self-educationNo university in the world will provide you with a full-fledged set of necessary mental models. You will be limited to the framework of one discipline, and this deforms our perception of problems.
"Most people are trained in one model - for example, the economy - and then try to solve all problems in one way. You know the old saying: a man with a hammer sees a nail in everything. This is a completely incorrect way of thinking and a completely wrong way to act, "says Manger.
Output one: You need to collect your set of mental models yourself - from the fundamental concepts, rules and principles formulated in the main areas of human knowledge (Charlie calls them "big disciplines"). So your perception of any problem will be volumetric, and you will significantly expand the range of available methods to solve it.
By developing Manbon's metaphor, it can be said that in addition to the hammer, you will have a variety of screwdrivers, pliers, chisels, peppers, and even, maybe the superior perforator.
Be effectiveYou do not need to try to master all the most existing mental models. First, it is impossible, Charlie recognizes, and secondly, not so much. Guide Pareto's law: "20% of efforts give 80% of the result, and the remaining 80% effort is only 20% of the result."
In practice, this means that if you want, let's say how to complete some kind of work as quickly as possible, you need to determine the minimum of effective actions that will allow you to make a maximum of the necessary thing - and then concentrate on them. Thus, according to the law, Pareto, in the process of forming your own set of mental models, your main task is to identify the most universal of them.
Even if such models do you first have a little, but you will constantly apply them, it will already significantly increase your speed and accuracy of solving problems.
Find links between mental modelsIf you just learn individual facts and you will try to pull them out of your head all the time, it is unlikely to help you in something, said Manger. You need to create a system that will connect these facts, then you can use them to the maximum.
Such a system is that Manganger calls the network of mental models. It can be created, for example, overcoming the boundaries between disciplines: establishing how models from one area of knowledge can explain the processes occurring in another. This principle can help investors use analogies to solve problems and look for new opportunities for investing money.
What to read, listen, see
The list is compiled by article about Charlie Manbon, in The Profile.
- Peter Bevelin's book "Search for truth: from Darwin to Manbon."
The author of The Profile Polina puspano calls her Bible mental models, with the help of which you can increase your rationality. The sections of this book disassembled and analyzed the factors that determine our method of thinking, psychological patterns that make us make erroneous conclusions, and ways to make mind clearer.
- MANGER Lecture "How to make your life awful" 1986.
She is considered "one of the greatest speeches from ever uttered." In lectures, among other things, Charlie listed - and analyzed - "Five ways to be guaranteed to become unhappy": consume chemicals to change the mood or perception; envy; Be unreliable; let life upset you; Do not learn about the mistakes and experience of others.
Insecurity, according to Manbon - the most dangerous. "If it is impossible to rely on a person, it crosses all his virtues. With this approach, he will gradually become a notorious hare from Basni, only he will overtake him not one turtle, but thousands, even if they are on crutches, "explains Charlie.
- An excerpt from Almanac Poor Charlie Peter Kaufman.
In it, Manger, a long time and actively interested in psychology, disassembles 24 cognitive distortions that make people do incorrect conclusions: psychological denial, conditioned reflexes and bias arising from envy and others.
According to him, biased judgments and actions are particularly hard to eradicate: "Our brain looks like an egg, in which no spermatozoa will be included after fertilization. So with the idea - once letting her, you become her hostage. "
- The 61st edition of the Podcast of The Investor's Podcast with Tren Griffin, the author of the book "Charlie Manger: A Perfect Investor."
From it you can learn about the investment philosophy of the billionaire and about his views on the risks, inevitably accompanying any operations on money investment. And also on how Manganger controls emotions, taking investment solutions, and what does to stay within the framework of its circle of competencies.
- Speech by Charlie Manbon at the University of Southern California.
He listed the main set of ideas that helped him build a career. One of them: "Give the world something that would use and what you would like to buy yourself."
- Lecture Manbon, read at the California University of Technology in 2008.
In it, he gives students his main advice: collecting and combining mental models, and also gives an example of several of them.
In addition, Manger tells about what calls the "Lollapalusus effect" (Lollapalusa - Music Festival in the USA. - REMINDER). It arises when some prejudices, inclinations and fears of many people suddenly turn out to be directed in one channel and become a powerful driving force forcing mistakes.
As an example, Charlie leads the Tupperware parties - popular in 60 events for sale then still unusual plastic containers. At such parties, consultants involved several techniques at once: for example, an emotional contact with the client was established before the sale, the prizes were played, invited already bought goods to share their impressions and so on.
The combination of all these factors forced people to act irrationally, and they bought more containers than they needed - and brought the company to the manufacturer approximately $ 1 billion per year.
The article is prepared by the online publishing Reminder, which is devoted to health, psychology and practical philosophy. More useful information can be found on our pages on Facebook, Telegram or in the mailing list.
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