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. 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.

ELON MUSK

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Problem Solving

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The Two Types of Thinking

Comparison thinking: comes up with solutions based on pre-existing ideas. It is the way we normally think but it also limits the solutions to possible permutations of what already exists.

First principles thinking: starts free of preconceptions by studying the fundamentals of something and then working your way to a new thing. This helps you understand complex problems.

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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.

Through most of our life, we get through life by reasoning by analogy, which essentially means copying what other people do with slight variations.

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Elon Musk
"… 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."
First Principle

Is a foundational truth that is "known by nature". It is not an assumption or deduction based on another theory or supposition but it’s also not an absolute truth but rather an observed one, meaning further analysis might prove it imprecise.

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