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Charlie Munger's Mental Models
Charlie Munger, the vice-chairman of Berkshire Hathaway, is a strong advocate for using mental models to improve decision-making and investing. Although he has not provided an exhaustive list, here are some key mental models from various disciplines that he has discussed or applied to investments:

Circle of Competence (Investing):
• Invest in businesses and industries you understand well.
• Focus on your areas of expertise and avoid ventures beyond your knowledge.

Margin of Safety (Finance):
• Purchase assets at a significant discount to their intrinsic value.
• This approach provides a buffer against potential losses and errors in valuation.

Opportunity Cost (Economics):
• Evaluate potential investments by comparing them to other available options.
• Choose the most attractive opportunities based on the returns and risks of all alternatives.

Mr. Market (Behavioral Finance):
• Treat the stock market as an emotional partner who sometimes offers irrational prices.
• Profit from market inefficiencies by staying rational and disciplined.

Moats and Competitive Advantage (Business Strategy):
• Invest in companies with durable competitive advantages that protect their market position.
• These advantages can include brand strength, economies of scale, or proprietary technology.

Scarcity and Social Proof (Psychology):
• Be aware of the biases that drive human behavior, such as the desire to follow the crowd or the attraction to scarce resources.
• Avoid being influenced by these biases in your investment decisions.

Inversion (Problem Solving):
• Approach problems by considering their opposite or by working backward.
• Identify potential pitfalls and challenges before making an investment.

Latticework of Mental Models (Interdisciplinary Thinking):
• Build a diverse set of mental models from various disciplines to help you understand complex situations.
• Apply these models in a holistic manner to improve your decision-making and investing abilities.

I found these helpful and hope it helps you all as well!

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