First Principles: How to think like Tesla CEO Elon Musk [Video]
"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. And 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 2 percent of the typical price—which is a crazy ratio for a large mechanical product."
SIMILAR ARTICLES & IDEAS:
"Well, I do think there’s a good framework for thinking. It is physics. You know, the sort of first principles ..."
Is a basic, foundational, self-evident proposition or assumption that cannot be deduced from any other proposition or assumption.
"… it's important to reason from first principles rather than by analogy. The normal way we conduct our lives is we reason by analogy. We are doing this because it's like something else that was done, or it is like what other people are doing. But with first principles, you boil things down to the most fundamental truths and then reason up from there."
Breaking down complicated problems into basic elements and then reassemble them from the ground up.
It’s one of the best ways to learn to think for yourself, unlock your creative poten...
...is a foundational proposition or assumption that stands alone. We cannot deduce first principles from any other proposition or assumption.
Reasoning by first principles removes the impurity of assumptions and conventions. What remains is the essentials.
If we never learn to take something apart, test the assumptions, and reconstruct it, we end up trapped in what other people tell us.
We remain trapped in the way things have always been done. When the environment changes, we just continue as if things were the same.