What is Negative Returns?

Negative Returns is a mental model used for better thinking and decision-making.

How do you apply Negative Returns?

To apply Negative Returns, identify situations where this framework is relevant, then use it as a lens to evaluate your options and decisions. The model is most useful when combined with other complementary mental models.

What category does Negative Returns fall under?

Negative Returns falls under the Finance & Investing category of mental models. Other models in this category can be found on the Finance & Investing hub page.

Why is Negative Returns important?

Negative Returns is important because it provides a structured way to think about problems that would otherwise be approached with intuition alone. Understanding this model helps you avoid common reasoning errors and make better decisions.

Negative Returns Mental Model…

Contents

1. Core Idea
2. How to See It
3. How to Use It
4. Founders & Leaders
5. Connected Models
6. One Key Quote
7. Summary & Further Reading

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