Looking for the best books on mental models?
In this article, we’ll look at the main headings to give you a better conceptual understanding of these principles and how they apply to your life.
You are reading: Best books on mental models
after all, once you discover these tools, you will experience enormous benefits in the way you perceive the world.
if you want to see the books, go directly to that section. otherwise, we’ll briefly discuss the topic first.
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definition
Mental models are psychological representations of the world. they break down all the data we receive and organize it into manageable chunks of information that we can effectively process and understand.
why are they important?
The world is a complex place. in any given situation, there are numerous variables to interpret and calculate. unfortunately, rather than being black and white, each scenario is multifaceted and nuanced. By simplifying the information we receive, our brains, with their limited power, can assess a situation and analyze the information against our pre-built model, ensuring the most appropriate response.
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“You really can’t know anything if you only remember isolated events. If the facts aren’t held together in a framework of theory, you don’t have them in a usable form. you have to have models in your head.”- charlie munger, investor, vice president of berkshire hathaway
how can you help?
mental models help us because the world is very complicated. With all the information and the limited bandwidth of our brain, we need mental shortcuts or heuristics that allow us to take in information, understand it, and put it to good use. In addition, they allow us to interpret a situation holistically. The world has largely tried to reward specialization by placing humans in neat categories of skill and competence. In a way, that ordering of society has limited our ability to think flexibly. take, for example, a struggling company. a salesperson might see falling profits as a sales failure. a product developer might see product quality as the problem, while a developer might focus solely on code quality. By themselves, none of these assessments are wrong, but they fail to take into account the bigger picture. in fact, they are narrow perspectives on a more complex problem. By investing in a wide range of mental models, we gain a deeper understanding of how the world works, so we’re not likely to be as blinded by our biases. we can zoom out and look at the whole picture, rather than just a small piece of the puzzle. With more information and better analysis, we are likely to make better decisions with more favorable outcomes.
a practical example
Let’s say you’re in the market for a new home. If I show you a drawing of a house, is it really a house? Does it help you understand what it would be like to live in that house? not really. To understand the house in greater depth, you would need a 3D computer model of the property so you can see it from all angles. better yet, if you could walk around it, you could understand every nook and cranny, really understanding what it’s like to live there. that’s why we have estate agents and property viewings after all! unfortunately very few people have the software (models) to represent their landscape so effectively. therefore, they run a significant risk of buying the wrong house.
the 5 best books on mental models
1. Poor Charlie’s Almanac: The Wit and Wisdom of Charles T. munger
charlie munger is one of the most famous investors and richest people in the world, and also a firm believer in the power of mental models. he originally coined the term network of mental models, which applies not only to finance, but also to many other disciplines. concise wisdom, accumulated through his speeches. Munger emphasizes the synthesis and intersection between psychology, philosophy, business, and economics. Defying categorization, this isn’t so much a how-to book for investing or life as it is a snapshot of a brilliant mind. therefore, it may well draw some criticism from those looking for a step-by-step approach.
“In all my life, I have not met wise people (about a broad subject area) who did not read all the time: none, zero. You’d be surprised how much Warren reads and how much I read. my children laugh at me. They think I’m a book with a pair of legs sticking out.”
2. influence: the psychology of persuasion by robert b. cialdini
one of my favorite books, full stop. Cialdini, the godfather of compliance, draws on fascinating research to illustrate six basic principles of psychology and, you guessed it, persuasion. This is essential reading for anyone looking to become a skilled social trader. Covering topics like reciprocity and social proof, it’s a read that identifies how marketers push us to take certain actions every day, and thus how to avoid potential manipulation. highly recommended.
“A well-known principle of human behavior says that when we ask someone to do us a favor, we will be more successful if we give a reason. people just like to have reasons for what they do.”
3. thinking, fast and slow by daniel kahneman
An important part of using mental models is noticing when these heuristics may be working against you. after all, we humans are often irrational creatures, full of prejudices and contradictions. In this seminal behavioral psychology work, the Nobel Prize-winning psychologist/economist outlines the common human errors that can result from our reliance on shortcuts, if anything strengthening the case for greater awareness of mental models and possession of a variety of them to use depending on the situation. This work covers topics such as preparation, exposure effect, and hindsight bias. it’s a pretty heavy tome and not for the faint hearted, but it’s worth the commitment.
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“A reliable way to get people to believe falsehoods is frequent repetition, because familiarity is not easily distinguished from truth. authoritarian institutions and merchants have always known this fact.”
I would also add politicians to that list 🙂
4. super thinking: the big book of mental models by gabriel weinberg & lauren mccann
written by gabriel weinberg, CEO of the search engine, duck duck go, it was interesting to get the technological perspective on the same principles that charlie munger has applied to other areas. That said, it still favors models that are applied in the business world. Weinberg is clearly influenced by Munger and Buffet, making reference to them in the text. the book will recall some of the early books, breaking down complex topics in memorable ways. however, although the book covers an exhaustive list of mental models with excellent visual representations and applications, some may feel that they need more depth at each point. so it’s great for an overview, but you may need to look at more resources to get a better understanding of each topic.
5. the grand mental models: general thinking concepts by shane parrish
Short and sweet, this book breaks down 9 common mental models and how they apply to life. takes an esoteric and abstract theme and weaves it nicely into stories. great for re-evaluating how we see the world and improving our decision-making through better analysis. Better to read the book than listen to the audible version.
summary
So there you have it: 5 amazing reads on mental models.
While some people may shake their fists at the sky without understanding events, you will be able to spot patterns and chart an effective course of action.
If you want to improve your understanding of this chaotic world we live in, immerse yourself in these books and familiarize yourself with their principles.
Explore more best books and recommended reading.
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