My Three Favorite Critically Counterintuitive Mental Models of Investing

I am a big fan of mental models — they are a way to organize our reality and understand the world.

They can also offer you rules of thumb — psychologists call them heuristics — that help you to make better decisions in your daily life.

Charlie Munger, Warren Buffett’s erstwhile investment long focused on the importance of mental models. In fact, Munger at…