“You must know the big ideas in the big disciplines and use them routinely–all of them, not just a few. Most people are trained in one model–economics, for example–and try to solve all problems in one way. You know the old saying: ‘To the man with a hammer, the world looks like a nail.’ This is a dumb way of handling problems.” - Charles Munger

The idea of a diverse background and multiple mental models is one that has always appealed to me. In college I studied Information Technology and Neuroscience. I’ve always been fascinated with the brain. It’s such an incredible creation, and I always felt that if I could understand the brain…the thing that governs thought and decision making, that it would be of great benefit to me in all aspects of life.

Munger’s concept of a latticework of mental models is beautiful:

“What you need is a latticework of mental models in your head. And, with that system, things gradually get to fit together in a way that enhances cognition.” - Charles Munger

This is absolutely true. When reading this quote, I was immediately reminded of one of my professors saying: “Neurons that fire together wire together.”

That’s why Munger’s above quote which speaks of not only knowing, but also using all of the big ideas and concepts from the major disciplines routinely, is in my opinion such a gem of wisdom. By using them together routinely, you enhance your ability to analyze and assess problems by quite literally creating a latticework of your mental models. It’s one thing to know them all, and to pull them out when you think that they apply. However, to go through the exercise of evaluating things by forcing yourself to think about them in relation to as many different models as you can will help you build the latticework that Munger speaks about.

Munger identifies many of the basic concepts that one should be familiar with such as: Basic Arithmetic, Compounding Interest, Permutations, Combinations, Probability, Accounting, Bell Curve Model, Backup Systems, Breakpoints, Critical Mass, Basic/Practical Psychology, Psychology of Misjudgment, Microeconomics, and Advantages/Economies of Scale.

I’m going to challenge myself to brush up on all of these concepts and more, and begin consciously evaluating things using as many of them as possible.

I think this quote from Munger best sums up why so many people fail to achieve this level of discipline in analysis and assessment:

“However, my particular approach seldom seems to get through, even to people of immense ability. Things usually die after going to the “Too-Hard” pile.” - Charles Munger

Don’t let hard work discourage you from being the best you can be.

Tags: Charles Munger, cognition, neuroscience, Poor Charlie's Almanac

This entry was posted on Monday, May 5th, 2008 at 8:35 pm and is filed under Business, Leadership, Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.