Investing the last liberal Art--Hagstrom
One of the most useful books I have read, in that it attempts to draw theories into practical uses in the market. INVESTING—THE LAST LIBERAL ART —Hagstrom 1. A Latticework of Mental Models Firstly, you need to acquire significant concepts, ie the models, from many areas of knowledge, then, second, learn to recognise patterns of similarity among them. The first is a matter of educating yourself, the second is a matter of learning to think and see differently. The key is finding the linkages that connect one idea to another….being able to observe similarities in other fields and recognise patterns of ideas. The human brain transfers knowledge more easily when the new situation and the original situation have similar elements. It is the ability to recognise complex patterns, classify new information into patterns and draw associations between the new data. The first step is a basic understanding of each model. –how each model works and the phenom...