Mental models are how we understand the world. Not only do they shape what we think and how we understand but they shape the connections and opportunities that we see. Mental models are how we simplify complexity, why we consider some things more relevant than others, and how we reason. A mental model is simply a representation of how something works. We cannot keep all of the details of the world in our brains, so we use models to simplify the complex into understandable and organizable chunks. Today we explore some of Charlie Munger's famous mental models as outlined in his speech "The Psychology of Human Misjudgment." This episode is brought to you by Gusto, making payroll, benefits, and HR easy for modern small businesses. Rocketship listeners get three months free at gusto.com/rocketship. This episode is also brought to you by Airtable, which is the all-in-one platform for product managers. Rocketship listeners can receive $50 in credit by signing up at Airtable.com/rocketship. This episode is also brought to you by DigitalOcean, the cloud platform that makes it easy for startups to launch high performance modern apps and websites. Learn more about DigitalOcean and apply for Hatch at do.co/rocketship. This episode is also brought to you by .tech, where you can secure your .tech domain name today. Rocketship listeners can receive a 90% discount on their .tech domain names by going to go.tech/rocketship and using coupon code ROCKETSHIP.  *** This show is a part of the Podglomerate network, a company that produces, distributes, and monetizes podcasts. We encourage you to visit the website and sign up for our newsletter for more information about our shows, launches, and events. For more information on how The Podglomerate treats data, please see our Privacy Policy.    Since you're listening to Rocketship, we'd like to suggest you also try other Podglomerate shows surrounding entrepreneurship, business, and careers like Creative Elements and Freelance to Founder. Learn more about your ad choices. Visit megaphone.fm/adchoices

Mental models are how we understand the world. Not only do they shape what we think and how we understand but they shape the connections and opportunities that we see. Mental models are how we simplify complexity, why we consider some things more relevant than others, and how we reason. A mental model is simply a representation of how something works. We cannot keep all of the details of the world in our brains, so we use models to simplify the complex into understandable and organizable chunks. Today we explore some of Charlie Munger's famous mental models as outlined in his speech "The Psychology of Human Misjudgment." This episode is brought to you by Gusto, making payroll, benefits, and HR easy for modern small businesses. Rocketship listeners get three months free at gusto.com/rocketship. This episode is also brought to you by Airtable, which is the all-in-one platform for product managers. Rocketship listeners can receive $50 in credit by signing up at Airtable.com/rocketship. This episode is also brought to you by DigitalOcean, the cloud platform that makes it easy for startups to launch high performance modern apps and websites. Learn more about DigitalOcean and apply for Hatch at do.co/rocketship. This episode is also brought to you by .tech, where you can secure your .tech domain name today. Rocketship listeners can receive a 90% discount on their .tech domain names by going to go.tech/rocketship and using coupon code ROCKETSHIP.  *** This show is a part of the Podglomerate network, a company that produces, distributes, and monetizes podcasts. We encourage you to visit the website and sign up for our newsletter for more information about our shows, launches, and events. For more information on how The Podglomerate treats data, please see our Privacy Policy.    Since you're listening to Rocketship, we'd like to suggest you also try other Podglomerate shows surrounding entrepreneurship, business, and careers like Creative Elements and Freelance to Founder. Learn more about your ad choices. Visit megaphone.fm/adchoices