Charlie Munger and his mental models

Charlie Munger is the business partner of multi billionaire Warren Buffet, was a brilliant lawyer who founded the premier law firm of Munger, Tolles and Olsen, he then went into real estate development and then started an investment firm where he generated annual returns of 20%.

Whilst Buffet speaks in dumbed down ways that anybody can understand, i.e. buy stuff when its cheap, Munger has come up with the idea of mental models which further enhance the learning of those who already think about philosophy.

"I think it is undeniably true that the human brain must work in models. The trick is to have your brain work better than the other person’s brain because it understands the most fundamental models: ones that will do most work per unit.

If you get into the mental habit of relating what you’re reading to the basic structure of the underlying ideas being demonstrated, you gradually accumulate some wisdom.

You’ve got to have models in your head. And you’ve got to array your experience ‑ both vicarious and direct ‑ on this latticework of models. You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life. You’ve got to hang experience on a latticework of models in your head."

One of my mental models is that ordinary people are scared of success, they don’t want to stand out to make a spectacle of themselves (as they would see it).

Because I understand this, I can use it to make my own life better. I can understand the feelings and use this to aid in positive actions and therefore be more successful.

You have control of your own mind and you alone can determine how you think and feel about things.

I suggest you do the same as me.


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