Elementary, Worldly Wisdom as It Relates to Investment Management and Business - Article Example

According to Charlie Munger, everyone needs a mental model at their disposal in order for us to make a decision quickly and efficiently. He claims that our experiences and circumstances in everyday life need to be evaluated with the help of many mental models. Munger described these mental models as “latticework” on which we can relate our daily experiences. Munger has many models in mind which could aid us in decision-making in the real world. Munger details that learning an idea is not difficult but putting them to use is relatively harder.

To make decision-making easy and effective, people need to have a mental framework upon which experiences can be placed.Some of the key points discussed by Munger are education, experience, and the use of various mental models to win the race of life. Without education, it is difficult to assess and analyze an experience and the mental models. Without experience, a mental framework would not be usable and without mental models, everything is disoriented.