TIP749: Unlocking Hidden Investing Secrets From Basic Science w/ Kyle Grieve

You're listening to TIP. Have you ever wondered if the secrets to smarter investing might be hidden in some overlooked scientific principles? Today, I'll be sharing several of my favorite mental models from physics, chemistry, and my personal favorite, biology. These have helped mightily in my understanding of specific businesses and business models. The best part? You don t need a PhD to use them. All you need is an understanding of what they are and how to apply them to solve problems. We'll explore how relativity can reveal perspectives that other investors miss, how momentum applied to a business' fundamentals helps you spot whether a company is improving or deteriorating, and how distinguishing between honest and dishonest signals can help you cut through the noise of the markets. And that's just the beginning. This episode is for investors who want to make more rational decisions, business leaders who want to build stronger companies, and really anyone curious about applying timeless scientific principles to investing, business, and life. Now, let's get right into this week's episode on mental models from chemistry, physics, and biology. Since 2014 and through more than 180,000,000 downloads, we've studied the financial markets and read the books that influence self made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Kyle Grieve. Welcome to The Investors Podcast. I'm your host, Kyle Grieve. And today, we'll discuss three broad scientific concepts and their underlying mental models. I'll be referencing many from the great mental models volume two by Shane Parrish, which focuses on three, like I said, areas of science which are physics, chemistry, and biology. And I'll be adding a few personal favorites as well from these three areas of science throughout the episode. So we'll focus mainly on what these models are and how we can use them in the context of investing. We'll start with physics, then move to chemistry, and then finish with biology, my personal favorite area of science from which to pick up mental models. Don't worry if you're not knowledgeable in any of these fields. I'm sure as heck not. But I'll be simplifying these concepts as much as possible throughout the episode to make it easy for you to understand. So we're gonna start here with physics. Let's dive right into the concept of relativity, which basically means that there's more than one way to perceive something. It's really that simple. So two people can observe an event and come to completely different conclusions, not only because they're viewing the event from various angles, but also because of the internal biases that we all bring to the table as well as our previous experiences. The theory of relativity can be understood very well through thought experiments which I covered in detail on TIP seven forty which I'll be sure to link. The book covers two thought experiments though, both presented by noted physicists. I'm gonna focus on the first one here by …