“All I want to know is where I’m going to die, so I’ll never go there.” - CHARLIE MUNGER
Want to know how to implement the most powerful problem-solving tool you've probably never heard of?
Keep reading:
At first glance, a seemingly silly quote from Charlie Munger, the renowned American Billionaire Investor.
But what Charlie was employing here was one of the most powerful problem-solving tools known as "Inversion Thinking."
The power of Inversion Thinking is essentially problem-solving in reverse.
You identify all the possible problems in a situation and invert them to see them from a new perspective.
Charlie Munger once said, "It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid instead of trying to be very intelligent."
So, let's apply this to your business:
Instead of trying to find all the ways your business could succeed, try changing your perspective to; what are all the ways this business could fail?
E.g., What would prevent potential clients from buying my product or service?
As you begin to understand all the things that could cause your downfall, you start to see all the mistakes you should avoid along the way.
Now that you have a list of mistakes and problems, you are way more equipped to deal with them should they arise or avoid them if you see them coming.
Our brains are naturally more inclined to see problems rather than solutions, so starting with a comprehensive list of potential issues allows you to begin formulating a plan in response to future problems.
Warren Buffet famously said: "Rule number one: don't lose money. Rule number two: don't forget rule number one."
In this instance, he's inverting the problem, which is losing money, since he's always looking for ways not to lose money; a product of this is often making money!
Now, this is not a license for you to be a negative nancy, scrapping every idea or opportunity as you pick it apart; the idea here is to use logic and precise analysis to pick apart the worst-case scenario.
This is a learning tool and problem-solving framework for all intents and purposes (yes, that is how you say it).🤓
I hope you found this thread helpful. If you did:
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Before you go - I have another thread I think you might enjoy. It involves the "Father of Advertising," David Ogilvy, and his 10 simple suggestions for writing more effectively. Enjoy!