This article is the second of this new weekly series called Latticework of Mental Models, which will be authored by my friend and partner in writing the Value Investing Almanack, Anshul Khare. Anshul will write on various mental models – big ideas from various disciplines – which can help you think more rationally while analyzing businesses and making your stock investment decisions.
Have you ever wondered why Mark Zuckerberg (founder of Facebook) always wears the same grey t-shirt? Do you remember Steve Jobs’ black turtleneck that he wore for all his stage appearances?
These billionaires could afford anything in the world. Then what’s going on here? I’ll give you a moment to think about it and come back to it later in this post.
Last week, we delved into the characteristics of complex systems and discussed few ideas to protect ourselves from unintended consequences produced by complex adaptive systems.
However, just because we have discovered a tool to address a problem doesn’t mean that we should go on using it for every problem. Charlie Munger nailed it when he said –
To a man with hammer everything looks like a nail.
We don’t want to be that ‘man with hammer’. So what am I suggesting here?
Perhaps you have heard it numerous times before but let me just make you read it once more – “An ounce of prevention is better than a pound of cure.”
How about dealing with a situation just by avoiding it?