Investor's Mental Models: Mental Models Series, #3

By S VASIST

         Mental models are a representation of how things work in our minds, and you can use them to try to explain things and events. These mental models can change your behavior and point of view.
         In this book, you will find some eye-opening ideas and answers to many of your curiosities. It will help and provide insights into the matters of work, world, and growth. It is not necessary to read these models in a sequence, you can read these models in any way.
        I hope you will fit and relate these models to your already gained knowledge and experience, and if possible imagine applying each model to the real world.

• Language: English
• Publisher: Vasist Publishers
• Release date: Aug 9, 2021
• ISBN: 9798201756192

Book preview

Introduction

Content in this book was not written for publishing, but I wrote them as self-reference notes for me. I was in search of anything that improves my thinking and understanding of the world. Later, I edited these notes and published them under this book’s title. Today most people use the term ‘mental models’ for these ideas and theories. Mental models are a representation of how things work in our minds, and you can use them to try to explain things and events. These mental models can change your behavior and point of view.

I hope that in this book, you will find some eye-opening ideas and answers to many of your curiosities. It will help and provide insights into the matters of work, world, and growth. It is not necessary to read these models in a sequence; you can read these models in any way. I recommend you to fit and relate these models to your already gained knowledge and experience, and if possible imagine applying each model to the real world.

Capitalism

Capitalism is a political and economic system in which private companies, rather than the state, control trade and industry; and demand and supply freely set prices in markets in a way that can serve the best interests of society. This creates an economy built on the competition between private businesses that seek to make a profit and grow. Free markets may not be perfect but they are probably the best way to organize an economy.

Some features of capitalism are as follows:

Economic freedom for all

Private property rights

Consumer-focused; Best product for best prices

Limited government interference

Well developed finance sector

Democratic political system

Profit motive and Self-Interest

Market forces at work

Flexible labor markets

Free trade and freedom of enterprise

Free competition

Capitalistic systems are generally efficient and innovative. They discourage bureaucracy and discrimination. The US has always been a champion of capitalism and it has benefitted from this system greatly.

"America’s abundance was created not by public sacrifices to ‘the common good,’ but by the