#471: Using Mental Models to Make Better Decisions

The Art of Manliness

Society & Culture, Education, Philosophy

4.7 • 14.5K Ratings

🗓️ 7 January 2019

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

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Summary

We live in a complex, fast-changing world. Thriving in this world requires one to make fast decisions with incomplete information. But how do you do that without making too many mistakes? My guest today argues that one key is stockpiling your cognitive toolbox with lots of “mental models.” His name is Shane Parrish. He’s a former Canadian intelligence officer and the owner of the website Farnam Street, which publishes articles about better thinking and decision making and is read by Wall Street investors, Silicon Valley entrepreneurs, and leaders across domains. We begin our conversation discussing how Shane’s background as an intelligence officer got him thinking hard about hard thinking and why the musings of investors Warren Buffet and Charlie Munger have had a big influence on his approach to decision making. Shane then shares his overarching decision making philosophy and explains what mental models are and why they’re a powerful tool to make better decisions. We then discuss why you should focus on being consistently not stupid instead of trying to be consistently brilliant and tactics you can use to make better decisions. Get the show notes at aom.is/farnamstreet.

Transcript

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0:00.0	BRET McKay here and welcome to another edition of the Art of Manliness Podcast.
0:18.5	We live in a complex, fast-changing world.
0:21.4	Thriving into this world requires one to make fast decisions with incomplete information.
0:24.9	But how do you do that without making too many mistakes?
0:27.6	I guess they argue that one key is stockpiling your cognitive toolbox with lots of mental
0:31.9	models.
0:32.9	His name is Shane Parrish.
0:33.9	He's a former Canadian intelligence officer and the owner of the website Fartham Street,
0:37.0	which publishes articles about better thinking and decision-making and is read by Wall Street
0:40.7	investors, Silicon Valley entrepreneurs, and leaders across domains.
0:44.2	We begin our conversation discussing how Shane's background as an intelligence officer
0:47.4	got him thinking hard about hard thinking and why the musings of investors Warren Buffett
0:51.6	and Charlie Munger has had a big influence on his approach to decision-making.
0:55.4	Shane then shares his overarching decision-making philosophy and explains what mental models
0:58.8	are and why they're powerful tools to make better decisions.
1:01.5	We then discuss why he should focus on being consistently not stupid as they're trying
1:05.7	to be consistently brilliant and tactics you can use to make better decisions.
1:09.7	After the show is over, check out our show notes at aowm.is slash Fartham Street.
1:23.9	Shane Parrish, welcome to the show.
1:25.9	Thanks.
1:26.9	Glad to be here.
1:27.9	You had up a website called Fartham Street.
	...

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