- Margin of Safety Engineers design for extremes, not averages. To create a robust system, ensure a meaningful gap between what the system is capable of handling and what it is required to handle.
- Compounding The most powerful force in the universe can work in domains other than money.
- The law of diminishing returns Inputs to a system lead to more output, up until a point where each further unit of input will lead to a decreasing amount of output.
- Regression to the mean Above- or below- average performance tends to correct towards the average over the long term.
The Great Mental Models series demystifies once elusive concepts and illuminates rich knowledge that traditional education overlooks. This series is the most comprehensive and accessible guide on using mental models to better understand our world, solve problems, and gain an advantage.