Stock Stories | Case Studies and Mental Models for Individual Investors
Mental Model: Power Law - Distribution Is Not Always Equal
Chapters
1:09
Intro
3:21
Mental Model Definition
3:44
Explanation of the Concept
9:52
Investing Application
19:16
Outro
Stock Stories | Case Studies and Mental Models for Individual Investors
Mental Model: Power Law - Distribution Is Not Always Equal
Apr 28, 2021 Episode 171

What are power laws?  Effectively, it’s when one variable changes substantially when another variable changes just a little.  Put in business terms, a disproportionate amount of the rewards go to those at the top.

In today's episode we cover the mental model of power laws, including the general concept behind it and how we can apply it as an investor.

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