Mental Razors

Welcome to the 500+ new members of the curiosity tribe who have joined us since Friday. Join the 20,500+ others who are receiving high-signal, curiosity-inducing content every single week!Today’s newsletter is brought to you by Fundrise!Fundrise is the future of real estate investing - a platform that allows anyone to invest in a low-cost, diversified portfolio of institutional-quality real estate. With low minimums and no accreditation requirements, Fundrise is democratizing access to a historically exclusive asset class.Join 150,000+ other investors and start investing in real estate today!Mental RazorsRazors are rules that simplify decisions.20+ powerful razors (to help you cut through life’s noise):The ELI5 RazorComplexity and jargon are often used to mask a lack of true understanding.If you can’t explain it to a 5-year-old, you don’t really understand it. If someone uses a lot of complexity and jargon to explain something to you, they probably don’t understand it.Munger’s Rule of Opinions“I never allow myself to have an opinion on anything that I don’t know the other side’s argument better than they do.” - Charlie MungerOpinions aren’t free. You have to work to earn the right to have them.The Taleb “Look the Part” RazorIf forced to choose between two options of seemingly equal merit, choose the one that doesn’t look the part. The one who doesn’t look the part has had to overcome much more to achieve its status than the one who fit in perfectly.The Bezos Regret Minimization FrameworkThe goal is to minimize the number of regrets in life.When faced with a difficult decision:Project yourself into the futureLook back on the decisionAsk "Will I regret not doing this?"Take actionThe Boaster’s RazorTruly successful people rarely feel the need to boast about their success.If someone regularly boasts about their income, wealth, or success, it’s fair to assume the reality is a fraction of what they claim.The Steve Jobs Quality Razor“When you’re a carpenter making a beautiful chest of drawers, you’re not going to use a piece of plywood on the back, even though it faces the wall and nobody will ever see it. You’ll know it’s there, so you’re going to use a beautiful piece of wood on the back. For you to sleep well at night, the aesthetic, the quality, has to be carried all the way through.” - Steve JobsWhen building, take pride in carrying the quality all the way through. Would you be proud for your work to be seen from every angle and perspective? If not, keep working.Buffett’s Rule of Holes“The most important thing to do if you find yourself in a hole is to stop digging." - Warren BuffettWhen things aren’t working, change course and try something different. When you find yourself at the bottom of a hole, stop digging and climb out of it.The Paul Graham Crazy Idea RazorIf someone proposes a crazy idea, ask:Are they a domain expert?Do I know them to be reasonable?If yes on (1) and (2), you should take the idea seriously, as it may be an asymmetric bet on the future.The Circle of CompetenceBe ruthless in identifying your circle of competence (and its boundaries). When faced with a big decision, ask yourself whether you are qualified to handle it given your circle. If yes, proceed. If no, outsource it to someone who is.The Duck TestIf it looks like a duck, swims like a duck, and quacks like a duck, it’s probably a duck. You can determine a lot about a person by regularly observing their habitual characteristics.Buffett’s Juicy Pitch“You don't have to swing at everything - you can wait for your pitch." - Warren BuffettLife doesn’t reward you for the number of swings you take. Slow down and focus on identifying the juiciest pitch. When it comes, swing hard and don’t miss it.Occam’s RazorThe simplest explanation is often the best one. Simple assumptions > complex assumptions. Simple is beautiful.The Buffett Reputation Razor“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” - Warren BuffettRemember that quote and act accordingly. Your character is your fate.Hanlon’s RazorNever attribute to malice that which can be adequately explained by stupidity.In assessing someone's actions, we should not assume negative intent if there is a viable alternative explanation, such as different beliefs, incompetence, or ignorance.Machiavelli’s RazorA simple modification of Hanlon’s Razor:Never attribute to malice that which can be adequately explained by self-interest.In assessing someone's actions, we should not assume negative intent if there is a viable alternative explanation that they are acting on rooted self-interest.Newton’s Flaming Laser SwordIf something cannot be settled by experiment or observation, it is not worth debating. This will save you from wasting a lot of time on pointless arguments.Hitchens’ RazorWhat can be asserted without evidence can also be dismissed without evidence. The burden of proof regarding a claim lies with the one who makes t...