Inversion thinking explained

- Okay, onto the good stuff. In this lesson, we're taking a look at one of the most powerful mental models we have in our arsenal. It's called inversion, and it's a framework for looking at things backwards. A little history. It's inspired by this 19th century German mathematician named Carl Jacobi. Jacobi became known for solving tough math problems by following a strategy. Here goes my feeble attempt at some German. (speaking in foreign language) I totally nailed that. Translated, it means, "Invert, always invert." Munger was inspired by Jacobi's way of thinking. Here's what he had to say. Quote, "Jacobi knew that it's in the nature of things that many hard problems are best solved when they're addressed backward." He goes on to use Jacobi's words, in English this time. Quote, "Invert, always invert. Turn a situation or problem upside down. Look at it backward. What happens if all our plans go wrong? Where don't we want to go, and how do you get there? Instead of looking for success, make a list of how to fail instead through sloth, envy, resentment, self pity, entitlement, all the mental habits of self defeat. Avoid these qualities and you will succeed. Tell me where I'm going to die so I don't go there." Close quote. That last sentence, that about sums it up. Inversion is a model that requires us to think about problems non-linearly, starting at the end and working backwards to pick out potential pitfalls or obstructions. Instead of asking ourselves, "What do I need to make this thing go right," we should ask, "What are the reasons this thing could go horribly, terribly wrong?" Inversion forces us to acknowledge the possibility for failure at the very outset, and it helps us illuminate those trouble spots that we might not have seen before, helping us to circumnavigate them. Some might call it a pessimistic way of thinking. We all know that eternal optimist who's always gung ho, but it's really about risk mitigation, risk aversion. Shane Parrish from "Farnham Street", a great blog, puts it this way. Quote, "Inverting the problem won't always solve it, but it will help you avoid trouble. You can think of it as the avoiding stupidity filter. It's not sexy, but it's a very easy way to improve." (upbeat music)