Contents
Contents
Mental model
Barbell Strategy
Concentrating resources at two extremes — maximum safety and maximum risk — whil
Mental model
Circle of Competence
You have an edge in some domains and not others — and the boundary between the t
Mental model
Discounted Cash Flow
A valuation method that determines the present value of an investment based on p
Mental model
Margin of Safety
The practice of buying assets at prices sufficiently below estimated intrinsic v
Mental model
Arbitrage
Mental model
Asymmetric Upside
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— Coco Chanel, on luxury pricing"The best things in life are free. The second best are very, very expensive."
Luxury Paradox applied the Supply and Demand mental model
Luxury Paradox applied the Costly Signalling Theory mental model
Luxury Paradox applied the Perceived Value mental model
Luxury Paradox applied the Utility mental model
Luxury Paradox applied the Quality mental model
Luxury Paradox applied the Cost mental model