Charlie Munger s 100 Mental Models 9 .

Mondo Culture Updated on 2024-02-01

81.Maslow's hierarchy of needs

The greatest significance of Maslow's hierarchy of needs for us is that it tells us that after satisfying basic needs, people have to achieve higher needs and goals.

Double-entry bookkeeping

Double-entry bookkeeping is a method of bookkeeping in two or more accounts that are linked to each other for an equal amount when records need to be recorded after the occurrence of each economic transaction.

Quality Control Theory

Plan, Execute, Check, Act These four stages are sequential, linked, and connected from beginning to end, and each execution is a cycle, called the PDCA cycle, and each cycle has an improvement over the previous cycle.

Redundant backup system

Plan, Execute, Check, Act These four stages are sequential, linked, and connected from beginning to end, and each execution is a cycle, called the PDCA cycle, and each cycle has an improvement over the previous cycle.

Breaking point theory

A person should set a stop-loss point when investing and stop losses when necessary to prevent huge losses.

Flow model

1. Clear goalsTasks of appropriate difficulty- Neither anxious nor boring. 2. Timely feedback- Satisfaction with progress. The reason why games are so popular is that games are designed to satisfy the flow theory, if the definition of games is expanded to include study, work, sports, and education, to evaluate whether what you are doing satisfies the three points of flow, so that you will live a happy life. 3. Give full play to some of your abilities 4. Be completely concentrated and have control over the things on your hands

Occam's razor

Scientific theories should be as simple as possible, but not overly simplistic.

Microeconomics

1) Considering scarcity is fundamental to understanding value (2) Opportunity cost: People face trade-offs, the cost of something is something that is given up in order to get it (3) Incentives are essential (4) Economic thinking is marginal thinking, and rational people consider marginal quantities (5) Access to information comes at a cost, and information asymmetry is a huge advantage (6) It makes everyone better,** The hand is everywhere (7) The value of goods and services is subjective (utility theory of value) (8) Sunk costs: Rationality in the face of loss Learning economic thinking and making choices efficiently is the core thinking of the economy.

Scale advantage theory

The essence of the theory of scale advantage is that the more goods you produce, the better you can produce that goods.

Circle thinking

* Circles are ways of knowing the world and have three levels. Starting from the why, the essence of the problem is the most rapid dialysis of the root cause of the problem.

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