Eben PaganDiscovery Hub

100 mental models as simulation machines for better decisions

Mental models are simulation machines for your mind. Instead of trial and error in the real world — which is expensive and slow — you test scenarios mentally before acting. The goal is to build approximately 100 diverse mental models from different domains: physics, biology, economics, psychology, history. Charlie Munger called this the lattice work approach. When you have models from multiple domains, you can combine them for creative solutions that someone with one framework would never see. I also advocate for constantly asking 'What is value?' — posting it on your monitor and contemplating it daily for a month. Most business problems trace back to not understanding what other people actually value, because people do things for their reasons, not yours. Diverse models plus value-orientation equals dramatically better judgment.

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Mental models are simulation machines for your mind. Instead of trial and error in the real world — which is expensive and slow — you test scenarios mentally before acting. The goal is to build approximately 100 diverse mental models from different domains: physics, biology, economics, psychology, history. Charlie Munger called this the lattice work approach. When you have models from multiple domains, you can combine them for creative solutions that someone with one framework would never see. I also advocate for constantly asking 'What is value?' — posting it on your monitor and contemplating it daily for a month. Most business problems trace back to not understanding what other people actually value, because people do things for their reasons, not yours. Diverse models plus value-orientation equals dramatically better judgment.

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    Build 100 Mental Models Using Munger's Lattice Work Approach

    Eben Pagan recommends building approximately 100 diverse mental models from different domains that can be combined for creative solutions. He specifically advocates for Charlie Munger's lattice work approach and emphasizes constantly asking 'What is value?' to understand client and market needs.

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    Contemplate What Is Value Daily for a Month — Pagan's Exercise

    Eben Pagan recommends writing 'What is value?' on a post-it note and contemplating it daily for a month. He teaches that most business problems stem from not understanding other people's values, because people do things for their reasons, not yours.

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    Post-It Note Value Exercise for Solving Business Problems

    Write 'What is value?' on a Post-it note, stick it on your computer monitor, and contemplate it daily for a month. Focus on understanding value for your clients, customers, partners, and family to solve business problems.

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    Mental Models — Test Scenarios Mentally Before Acting in the World

    Mental models are simulation machines for your mind that help you avoid trial and error by testing scenarios mentally before acting in real life. They help you make better predictions and decisions.

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