10 worldview changing mental models that will make you smarter:
Consensus-Contrarian Matrix
In order to produce outsized returns in any given area, you have to both bet against the convention and be right.
”You can’t take the same actions as everyone else and expect to outperform.”
—Howard Marks
Curse of Knowledge
Once we know something, we assume everyone else knows it, too.
It's why some experts can't explain their field in simple terms and people don't share knowledge that could benefit others.
Lesson: There are always people to teach and people to learn from.
Perfect Solution Fallacy
We reject something because it compares poorly to an ideal that in reality is unattainable.
We assume there is a perfect solution to every problem.
Reality is more complicated and trade-offs exist.
Take the option with the most bearable trade-offs.
Pessimism Bias
We overestimate the likelihood of negative outcomes.
Evolutionary speaking this developed as a defence mechanism and served us well.
We heard a noise in the bushes and ran.
This doesn't apply anymore: we've never lived in a safer world.
Be an optimist.