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Psychology
5 Models
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Maths
3 Models
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Economics
5 Models
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Markets
5 Models
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Engineering
3 Models
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Biology
2 Models
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Management
3 Models
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Other Key Models
4 Models
5 Models
3 Models
5 Models
5 Models
3 Models
2 Models
3 Models
4 Models
The universal tendency to act in one's own self-interest, often unconsciously, due to the incentives in place. Never underestimate its power.
Learn MorePeople have a deep need to be seen as consistent. As such, once they have publicly committed to something, they are much more likely to follow through.
Learn MoreThe tendency to assume the actions of others reflect the correct behavior for a given situation. If everyone is doing it, it must be right.
Learn MoreThe tendency to continue an endeavor because of previously invested resources (time, money, effort), rather than on its current prospects.
Learn MoreThe mind's tendency to settle on the first conclusion that comes to it, without considering alternatives. It's a major barrier to rational thinking.
Learn MoreA fundamental fluency with numbers is the starting point for understanding almost every other model. It's the language of reality.
Learn MoreThe process where an asset's earnings are reinvested to generate additional earnings. It's a powerful force in finance, knowledge, and habits.
Learn More(Permutations and Combinations). The mathematical tools for understanding the number of possible outcomes in a given scenario. Essential for probability.
Learn More(Economies of Scale). The cost advantages that businesses obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.
Learn MoreThe tendency for people to spend more as the value of their assets (like stocks or real estate) rises, even if their income has not changed.
Learn MoreThe value of the next-best alternative that was not chosen. Every decision has an opportunity cost.
Learn MoreA situation where individual users, acting in their own self-interest, behave contrary to the common good of all users by depleting a shared resource.
Learn MoreThe ability of an economy to produce goods and services at a lower opportunity cost than that of trade partners. It explains why trade is beneficial for all parties.
Learn MoreUnderstanding how new technologies emerge, disrupt existing industries, and create new opportunities is crucial for investing and business strategy.
Learn More(Creative Destruction). The process of industrial mutation that incessantly revolutionizes the economic structure from within, destroying the old one, creating a new one.
Learn MoreA betting system where all bets of a particular type are placed together in a pool. The odds are determined by the collective wisdom (or folly) of the crowd, not a bookmaker.
Learn MoreAn allegory created by Benjamin Graham to describe the stock market as a moody business partner who offers to buy or sell shares every day at fluctuating prices.
Learn MoreAn analogy for business decisions where you must act decisively to cut out a failing part of a business (the "cancer") to save the healthy remainder, even if it's painful.
Learn MoreThe inclusion of extra components which are not strictly necessary to functioning, in case of failure of other components.
Learn MoreA point in a system or process where it will fail or fundamentally change. Understanding where these are is key to building resilient systems.
Learn MoreBuilding a buffer between intended performance and failure points to account for uncertainty, risk, and unforeseen events.
Learn MoreThe process whereby organisms better adapted to their environment tend to survive and produce more offspring. This applies to ideas, businesses, and strategies.
Learn MoreA process in which the outputs of a system are circled back and used as inputs. They can be positive (amplifying) or negative (stabilizing).
Learn MoreA simple but powerful tool to reduce errors and ensure consistency, especially in complex tasks. It compensates for the limits of human memory and attention.
Learn MoreThe practice of asking obvious, fundamental questions to simplify complex problems and uncover the core issues (e.g., "What is the goal here?").
Learn MoreLegal tools that create a temporary monopoly, providing a powerful incentive for innovation by allowing creators to profit from their ideas.
Learn MoreA tree-like model of decisions and their possible consequences, used to map out choices and investigate outcomes.
Learn MoreThe discipline of collecting, analyzing, and interpreting data. It's the primary tool for navigating uncertainty and making data-informed decisions.
Learn MoreThe study of fundamental questions about existence, knowledge, values, reason, mind, and language. It provides the "why" behind the "what".
Learn MoreStudying history provides a vast database of human behavior, societal change, and repeated patterns, offering invaluable context for present-day decisions.
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