Podcast Episode Details
Back to Podcast Episodes
Mental Razors
Episode 17
Welcome to the 500+ new members of the curiosity tribe who have joined us since Friday. Join the 20,500+ others who are receiving high-signal, curiosity-inducing content every single week!
Today’s newsletter is brought to you by Fundrise!
Fundrise is the future of real estate investing - a platform that allows anyone to invest in a low-cost, diversified portfolio of institutional-quality real estate. With low minimums and no accreditation requirements, Fundrise is democratizing access to a historically exclusive asset class.
Join 150,000+ other investors and start investing in real estate today!
Mental Razors
Razors are rules that simplify decisions.
20+ powerful razors (to help you cut through life’s noise):
The ELI5 Razor
Complexity and jargon are often used to mask a lack of true understanding.
If you can’t explain it to a 5-year-old, you don’t really understand it. If someone uses a lot of complexity and jargon to explain something to you, they probably don’t understand it.
Munger’s Rule of Opinions
“I never allow myself to have an opinion on anything that I don’t know the other side’s argument better than they do.” - Charlie Munger
Opinions aren’t free. You have to work to earn the right to have them.
The Taleb “Look the Part” Razor
If forced to choose between two options of seemingly equal merit, choose the one that doesn’t look the part. The one who doesn’t look the part has had to overcome much more to achieve its status than the one who fit in perfectly.
The Bezos Regret Minimization Framework
The goal is to minimize the number of regrets in life.
When faced with a difficult decision:
Project yourself into the future
Look back on the decision
Ask "Will I regret not doing this?"
Take action
The Boaster’s Razor
Truly successful people rarely feel the need to boast about their success.
If someone regularly boasts about their income, wealth, or success, it’s fair to assume the reality is a fraction of what they claim.
The Steve Jobs Quality Razor
“When you’re a carpenter making a beautiful chest of drawers, you’re not going to use a piece of plywood on the back, even though it faces the wall and nobody will ever see it. You’ll know it’s there, so you’re going to use a beautiful piece of wood on the back. For you to sleep well at night, the aesthetic, the quality, has to be carried all the way through.” - Steve Jobs
When building, take pride in carrying the quality all the way through. Would you be proud for your work to be seen from every angle and perspective? If not, keep working.
Buffett’s Rule of Holes
“The most important thing to do if you find yourself in a hole is to stop digging." - Warren Buffett
When things aren’t working, change course and try something different. When you find yourself at the bottom of a hole, stop digging and climb out of it.
The Paul Graham Crazy Idea Razor
If someone proposes a crazy idea, ask:
Are they a domain expert?
Do I know them to be reasonable?
If yes on (1) and (2), you should take the idea seriously, as it may be an asymmetric bet on the future.
The Circle of Competence
Be ruthless in identifying your circle of competence (and its boundaries). When faced with a big decision, ask yourself whether you are qualified to handle it given your circle. If yes, proceed. If no, outsource it to someone who is.
The Duc
Published on 4 years, 6 months ago