How to Make Smart and Profitable Decisions (Without Being a Genius)
10 mental models you can use to compound your knowledge
It’s impossible to know everything. You just don’t have enough time to process all the information in the world. That’s where mental models come in. Over time, you want to build these little “rules of thumb” that you can use to make smart decisions.
Mental models give you a mental edge because they help you make decisions without needing to know every little thing about the subject of your decision. They’re little programs you can use to assess things much more quickly.
There are an infinite amount of mental models to choose from. You can, and should, make up some of your own. Let’s take a look at some of the models that have personally helped me transform my entire life over the past six years.
The Savvy Gambler Model
“Improving decision quality is about increasing our chances of good outcomes, not guaranteeing them.” — Annie Duke
You want to expose yourself to scenarios where the payoff is potentially huge and the downside is limited. Some people call this antifragility.
