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The Psychology Of The Ultimate Entrepreneur

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The Psychology Of The Ultimate Entrepreneur

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Elon Musk

“Physics teaches you to reason from first principles rather than by analogy. So I said, okay, let’s look at the first principles. What is a rocket made of? Aerospace-grade aluminum alloys, plus some titanium, copper, and carbon fiber. Then I asked, what is the value of those materials on the commodity market? It turned out that the materials cost of a rocket was around two percent of the typical price.”

ELON MUSK

1.99K

11.4K reads

MORE IDEAS ON THIS

The Power of First Principles

Even if you aren't trying to develop innovative ideas, understanding the first principles of your field is a smart use of your time. Without a firm grasp of the basics, there is little chance of mastering the details that make the difference at elite levels of competition.

...

1.93K

7.15K reads

The Challenge of Reasoning From First Principles

One of the primary obstacles to first principles thinking is our tendency to focus on making slight iterations on the same theme. The problem is that, old conventions and forms are often accepted without question and they set boundaries around creativity.

Optimize t...

2.03K

7.51K reads

One Method, Different Solutions

One Method, Different Solutions

Different solutions present themselves at different layers of abstraction. Depending on how deep and thorough is your breakdown of the situation, putting them all back together may yield different solutions.

1.99K

10.5K reads

First Principles Thinking

First Principles Thinking

Is the act of deconstructing something to the fundamental parts that you know are true and building up from there.

Also called reasoning from first principles, it effectively helps many great thinkers (or entrepreneurs like Elon) to break down complicated p...

2.41K

20.5K reads

First Principles as An Innovation Drive

Many groundbreaking ideas have been a result of boiling things down to the first principles and then substituting one of the key parts for a more effective solution.

The best solution is often not where everyone is already looking. After getting to the fact...

1.92K

7.85K reads

Using First Principle Thinking in Practice

Using First Principle Thinking in Practice

In theory, first principles thinking requires you to dig deeper and deeper until you are left with only the foundational truths of a situation.

In practice, you don't have to go down to the atomic level to benefit from first principles thinking. Just going one or two levels deeper t...

2.05K

7.4K reads

Cartesian Doubt

Cartesian Doubt

Method used by René Descartes in which he would “systematically doubt everything he could possibly doubt until he was left with what he saw as purely indubitable truths."

2.12K

10.2K reads

First Principle

First Principle

A first principle is a basic assumption that cannot be deduced any further. 

1.96K

8.42K reads

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markdd

Knowledge is knowing a tomato is a fruit; Wisdom is not putting it in a fruit salad.

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Elon Musk

"I tend to approach things from a physics framework. And physics teaches you to reason from first principles rather than by analogy. So I said, OK, let’s look at the first principles. What is a rocket made of? Aerospace-grade aluminum alloys, plus some titanium, copper, and carbon fiber...

ELON MUSK

Elon Musk

"Well, I do think there’s a good framework for thinking. It is physics. You know, the sort of first principles reasoning

(...) What I mean by that is, boil things down to their fundamental truths and reason up from there, as opposed to reasoning by analogy.

T...

ELON MUSK

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