The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

TIP740: The Great Mental Models Part 1

Jul 27, 2025

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Show notes

On today’s episode, Kyle Grieve discusses the power of mental models, how they sharpen our thinking, and how they improve our decision-making in investing and everyday life. He explores various key concepts in general thinking, including the circle of competence, inversion, first-principles thinking, probabilistic thinking, and more.

IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:01 - What exactly are mental models?
04:37 - The three failures people have with interacting with reality.
08:43 - A simple 6-step framework for making mentals into a habit.
17:45 - How to utilize what you already know to gain an edge.
29:40 - The importance of thinking in first principles to improve your ability to innovate and simplify.
36:10 - How to use thought experiments to analyze a business.
41:14 - Why using second-order thinking can rapidly enhance your quality of thinking.
49:46 - How probabilistic thinking helps make sense of a dynamic world.
58:54 - Why spending time thinking about a problem backwards can improve your upside.
01:04:57 - Why you should focus on simple solutions over complex ones.
And so much more!

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

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