Mental Models

We often go through each day without questioning our perception of the world.

We seldom stop to wonder whether the world we perceive matches the real world outside. Most of the time, that’s fine…because our perceptions serve us quite well.

In fact, our perception is good enough to guide us through a very complex world with few problems.

But because it serves us so well, it’s easy to forget how limited perception really is.

We live in a world that is vastly older, bigger, and more complex than we are. To think we can fit it all into our heads is a logical absurdity. And that’s why we need…

Wikipedia defines a mental model as…
An explanation of someone’s thought process about how something works in the real world. It is a representation of the surrounding world, the relationships between its various parts and a person’s intuitive perception about his or her own acts and their consequences. Mental models can help shape behaviour and set an approach to solving problems (akin to a personal algorithm) and doing tasks.

The American computer engineer J. W. Forrester defined mental models as…
The image of the world around us, which we carry in our head, is just a model. Nobody in his head imagines all the world, government or country. He has only selected concepts, and relationships between them, and uses those to represent the real system.

Here is what Charlie Munger on the importance of mental models in our lives…
You must know the big ideas in the big disciplines, and use them routinely — all of them, not just a few. Most people are trained in one model — economics, for example — and try to solve all problems in one way. You know the old saying: to the man with a hammer, the world looks like a nail. This is a dumb way of handling problems.

Anyways, LATTICEWORK MENTAL MODELS : Multidisciplinary Thinking, INVESTING, AND YOU can serve as a good starting point for you to create your own “latticework of mental models.” The insights you’ll discover here will become the springboard for further useful discovery.

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Just as a small measure of the tremendous effort that has gone into writing and compiling this e-book, we have put a small price to it – Rs 499 (we give away 50% of this money for the betterment of underprivileged). You can treat this price as your show of love for our work at Official Asset.

Before we end, one final warning. Anything you read “rewires” a part of your brain. The brain you have now; you don’t get that brain back after learning the mental models. We are sincerely hoping that the trade-off is worth it.

With respect,

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