This episode launches a series into mental models. An understanding of mental models is crucial if you want to be a better thinker and make better decisions. This episode focuses on two – ‘the map is not the territory’ and ‘the circle of competence. Carter and Mo explore the limitations of planning, assuming the worst is yet to come and why sometime you need to stay in your lane.

• The map is not the territory (1:08)

• Why explore mental models? (01:41)

• Being a better thinker helps you in everything (04:02)

• Map are useful but they are not reality (06:05)

• How to plan when you know the plan won’t work (11:15)

• Investing models don’t take into account how dynamic the world actually is (13:21)

• Why Warren Buffet and Charlie Munger don’t use computer models (14:05)

• The assumption should always be that the worst is yet to come (17:41)

• How does Carter prepare for the worst with his real estate business? (20:28)

• The circle of competence (23:35)

• How this mental model applied to Carter’s early experience in real estate (24:20)

• When is good, good enough? (33:35)

• When your ego is driving it tends to create blind-spots 34:38)

• The idea of staying in your lane (35:53)

• Situations where you need to stick to what you know best (38:52)

• Always assume the map has not shown you everything and stick to what you know when you need to win (40:17)