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Via Negative (Addition by Subtraction)

Sometimes, to make something better or work more effectively, you must take something away.
Over-engineering leads to more breakpoints and potential problems. Reducing components and complexity can add value you by making something:
- Simpler
- More reliable
- Faster
- Less costly (or more profitable) 


 

When we have a problem, our natural instinct is to add a new habit or buy a solution. 

But usually, you improve your life by subtracting instead. 

The foods you avoid are more important than the foods you eat. 

Subtracting distractions is the key to productivity.

Lindy Effect

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It is the idea that the older something is, the longer it’s likely to be around in the future.

The Lindy Effect helps us filter what’s robust - what matters over long periods of time - from what doesn’t matter. You want to learn robust ideas. You want the knowledge that will still be relevant and applicable 10, 20, and 50 years from now. 
Time is a natural filter for meaning. If something has been around a long time, it means it’s still important in some way. It’s useful. And those are the kinds of things worth knowing.

In that way, you can use the Lindy Effect to influence the kind of content you consume - filter out noise.

“For the perishable, every additional day in its life translates into a shorter additional life expectancy. For the nonperishable, every additional day may imply a longer life expectancy….The robustness of an item is proportional to its life!” - Nassim Taleb

“If a book has been in print for forty years, I can expect it to be in print for another forty years. But, and that is the main difference, if it survives another decade, then it will be expected to be in print another fifty years. This, simply, as a rule, tells you why things that have been around for a long time are not ‘aging’ like persons, but ‘aging’ in reverse. Every year that passes without extinction doubles the additional life expectancy. This is an indicator of some robustness. The robustness of an item is proportional to its life!” - Nassim Taleb

Applications:

  • When it comes to books - read the classics. These are the ideas of the best thinkers over thousands of years.

  • Gold vs. Bitcoin "Time in the market. It's valuable not only for holders, but for confidence of a protocol. Time it self is a factor of resilience. The longer it is, the longer its lasts."

Sunk Cost Fallacy

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The sunk cost fallacy is a mental model that explains why people continue investing time, money, or effort into something that is no longer viable simply because they’ve already spent resources on it. The core idea is that once costs have been incurred and cannot be recovered (sunk), they should no longer influence decision-making. However, many people struggle to let go due to an emotional attachment to past investments (time, money, etc.).

The sunk cost fallacy occurs when someone thinks, “I’ve already spent so much on this, so I can’t stop now,” even when stopping is the more rational choice. Imagine a person who paid for a non-refundable movie ticket but isn’t enjoying the movie. The rational choice would be to leave if they’re not having a good time, but many will stay just because they don’t want to “waste” the money spent, even though staying doesn’t get that money back.

Understanding and avoiding the sunk cost fallacy is essential for making better decisions in both life and business.

Recognizing the sunk cost fallacy helps us make more rational decisions. Instead of focusing on what we’ve already invested (which can’t be changed), it’s better to consider what will bring us the most benefit going forward.

Clinging to past investments can lead to continued poor decisions, whether it’s staying in a failing project, holding onto a bad investment, or persisting in an unfulfilling relationship. By recognizing the sunk cost fallacy, people can better evaluate future choices based on their potential rather than past losses. 

We can’t change the past, only the future — so decisions should be made based on what’s going to happen next, not what we’ve already invested.

Applications:

  • In daily life, this mental model can help you avoid wasting time and effort on things that aren’t working. For example, if you’ve spent hours reading a book you don’t enjoy, instead of thinking, “I’ve already read 200 pages, I might as well finish,” it’s better to cut your losses and move on to something more rewarding.

  • In business, the sunk cost fallacy can lead to continuing failing projects because of how much has already been invested. For instance, a company might keep pouring money into a product that isn’t selling, just because they’ve already spent a significant amount on development. Recognizing when to cut losses is key to avoiding bigger financial disasters.

Quotes:

  • “We invested so much in this, we can’t just quit now!” - anonymous 

  • “I’ve already spent five years in this job, I can’t change careers now.” - anonymous

  • “The most important thing to do if you find yourself in a hole is to stop digging." - Warren Buffett (If you find you're in a bad investment, stop throwing money at it. Though it's painful to pull out, in the end it is far more profitable) 

 

References:

Model Template

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