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Seeking Wisdom with David Cancel

#147: Invert, Always Invert: A Secret to Solving the Most Difficult Problems.

Seeking Wisdom with David Cancel

Molly Sloan

Business, Entrepreneurship

5610 Ratings

🗓️ 4 March 2019

⏱️ 17 minutes

🧾️ Download transcript

Summary

What happens when you flip a problem on its head? Today on Seeking Wisdom, DC and DG are talking about inversion: a beloved mental model of Warren Buffett’s billionaire business partner, Charlie Munger. Inverting a problem or challenge has endless practical applications in business and everyday life. Be sure to tune in to hear how you too can use inversion to overcome some of your biggest obstacles.

Transcript

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0:00.0

Today we're going to talk about one of the most secret important problem solving lessons that I ever

0:12.9

learned from you and you learned it from Charlie Munger and that is invert. Always invert.

0:19.7

That's the quote. Invert, always invert. So before you talk about this,

0:23.1

I remember going for a walk with you in Cambridge around the mall area, around Mass Ave, around the

0:28.4

Charles River, probably like end of 2015, trying to think about how to enter this market

0:34.8

of marketing and sales. And I remember that you said, okay, well, this is too big. We can't say we're just going to go after marketers. We need a niche. We need a little wedge. That's right. And so our wedge was, it ended up being product marketing because we figured that the marketers that were closest to the website. You remember that? And they had the most ability to go in and change the website, yada, yada. So anyway, long story short, we launched drift. Things are going well. But the way we got to that problem is by inverting, by starting at the end. And so that was a super powerful lesson. And you re-shared it this week in your weekly Sunday night email, which I heard you're going to start making public. So I'm working with the homie gale. Yeah. G number three. I think she's G3. G3. Oh, like the jet.

1:11.4

Uh, mail, which I heard you're going to start making public. So I'm working with the homie gale. Yeah. G number three.

1:11.8

I saw it. I think she's G3.

1:13.0

G3.

1:13.6

Oh, like the jet. Because we have a lot of Gs here. And we're going to open up this newsletter. I don't know what we're going to call it yet, but it's going to be some version of the Sunday newsletter that I send internally. and I'm going to start making it available to everyone out there.

1:10.1

It should be paid, but I like to give the people stuff.

1:13.2

All right, so hit me.

1:13.7

Rewind me. that I send internally, and I'm going to start making it available to everyone out there.

1:27.7

It should be paid, but I like to give the people stuff. All right, so hit me. Rewind back. How did you learn this lesson? What is inversion and how do you apply it? Yeah, I think you did a good description there, which is the idea that I learned from Charlie Munger and Charlie Munger. It's all derivative. he learned from a mathematician is usually when we're trying to make a high

1:46.4

stake decision. We're overwhelmed by all the different variables, the facts. We get lost in the

1:53.5

process and all the details and we're overwhelmed and it's hard to make a decision. So what he says

1:58.7

is when you make a decision that he uses the technique of inversion.

2:04.4

And what inversion means is to not examine the problem the way that you are now, but to flip

2:09.7

the problem on its head. So flip it upside down and start from the opposite end and try to get

2:17.0

to basically the first principles or the root of

2:19.6

things and make a decision that way. So you said that your example was when we decided to get

2:25.3

into the market, we were trying to target marketers within companies. That was too broad.

...

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