Tag: mental models

Mental Model: Ecological Systems

A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how … Continue reading Mental Model: Ecological Systems →

Mental Model: Evolutionary psychology

A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how … Continue reading Mental Model: Evolutionary psychology →

Mental Model: Behavioral Economics

A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how … Continue reading Mental Model: Behavioral Economics →

Thoughts on Margin of Safety

A Margin of Safety is the difference between the intrinsic value of a security and it's market value. In some cases, a quantitative analysis of a security will indicate a false margin of safety. The falseness can go in both directions (under- and overestimates). https://www.youtube.com/watch?v=JUba8FGvriM Margin of Safety Calculation Although the concept of Margin of … Continue reading Thoughts on Margin of Safety →