Apr 23, 2026
Mental Models for Running Startups and Businesses, SXSW 2026 on
March 16, 2026.
(00:00:00) - Introduction
(00:00:28) - Charlie
Munger's mental models
(00:01:52) - Model 1: The Bedrock model: Take a simple idea and
take it seriously
(00:02:31) - Model 2: Truth vs. Trust; David Hawkins: Power vs.
Force
(00:05:43) - Costco
(00:07:56) - Model 3: Your deepest desire is your destiny
(00:09:40) - Model 4: Heads I win; Tails I don’t lose much; Jeff
Bezos
(00:10:36) - How to start a business without capital
(00:12:44) - Model 5: Be a shameless cloner; Sam Walton & Walmart
and Bill Gates & Microsoft
(00:14:49) - Model 6: Use hacks to improve yourself; Be a harsh
grader
(00:16:02) - Model 7: Hire slow fire fast
(00:16:53) - Model 8: Incentives are more powerful than you
think
(00:17:51) - Model 10: Pursue quality intensely; Zen and the art of
motorcycle maintenance by Robert Pirsig
(00:18:50) - Model 11: Focus on durable moats
(00:19:16) - Model 12: The purpose of business is not to make
money
(00:19:45) - Model 13: Outsourcing smaller tasks
(00:20:39) - The latticework of mental models; Listen to your
customer
(00:24:07) - Focus on taking larger market share
(00:25:19) - Model 14: Go all-in on no-brainers; Founders Podcast,
Business Breakdowns & Acquired podcasts
(00:28:54) - Book recommendations: Poor Charlie's Almanack,
Influence & Excellent Advice for Living
(00:29:27) - Duan Yongping: Fast is slow
(00:30:56) - Lifetime ban at a casino in Vegas; Blackjack
(00:33:09) - Exponential effect of implementing the models
together
(00:34:24) - Benefit of mental models to non-venture backed
businesses
(00:35:12) - El Cortez casino in Las Vegas; Blackjack
(00:41:49) - Mental models for creative professionals; Seinfeld's
Is This Anything?
The contents of this website are for educational and entertainment
purposes only, and do not purport to be, and are not intended to
be, financial, legal, accounting, tax or investment advice.
Investments or strategies that are discussed may not be suitable
for you, do not take into account your particular investment
objectives, financial situation or needs and are not intended to
provide investment advice or recommendations appropriate for you.
Before making any investment or trade, consider whether it is
suitable for you and consider seeking advice from your own
financial or investment adviser.
Thumbnail Photo credit: Nick Piacente