Inversion Principle

Discover the power of the Inversion Principle—an effective mental model for problem-solving. Learn how thinking in reverse helps identify blind spots, reduce risks, and make better decisions in investing, business, health, and life

Mar 2, 2025

What it is:

Instead of asking "How do I achieve X?", ask "How do I fail at X?" and then avoid those actions. By considering the opposite perspective, you can uncover blind spots, reduce risks, and make better decisions.
 

When to use it:

  • When stuck on a tough decision or complex problem.
  • When avoiding catastrophic mistakes is more important than achieving perfection.
  • When facing uncertainty and need clarity on worst-case scenarios.
 

How to apply it:

  1. Define the goal. → “How can I succeed at [goal]?”
  1. Invert the question. → “What would guarantee failure?”
  1. List failure points. → Identify mistakes, biases, or blind spots.
  1. Avoid & mitigate them. → Eliminate paths that lead to failure first.
 

Examples:

  1. Investing & Finance
      • Instead of “How do I build wealth?” → Ask “How do I go broke?”
      • Mistakes to avoid: Taking excessive risks, not diversifying, chasing hype stocks, ignoring financial discipline.
  1. Health & Fitness
      • Instead of “How do I get fit?” → Ask “How do I ruin my health?”
      • Mistakes to avoid: Eating junk, skipping exercise, sleeping late, ignoring stress.
  1. Time Management & Productivity
      • Instead of “How do I get more done?” → Ask “How do I waste my time?”
      • Mistakes to avoid: Checking social media too often, multitasking, overcommitting, lacking priorities.
  1. Decision-Making
      • Instead of “How do I make good decisions?” → Ask “How do I ensure bad decisions?”
      • Mistakes to avoid: Acting emotionally, ignoring data, following the herd, not considering second-order effects.
  1. Business & Leadership
      • Instead of “How do I build a strong company?” → Ask “How do I destroy a company?”
      • Mistakes to avoid: Ignoring customer feedback, bad hiring, micromanaging, losing focus, reckless expansion.
  1. Relationships & Trust
      • Instead of “How do I strengthen relationships?” → Ask “How do I destroy trust?”
      • Mistakes to avoid: Lying, breaking promises, not listening, being unreliable, taking people for granted.
  1. Public Speaking & Communication
      • Instead of “How do I become a good speaker?” → Ask “How do I give a terrible speech?”
      • Mistakes to avoid: Speaking without preparation, lacking clarity, ignoring the audience, rambling too much.
  1. Career Growth & Learning
      • Instead of “How do I advance in my career?” → Ask “How do I ensure career stagnation?”
      • Mistakes to avoid: Resisting change, not upgrading skills, avoiding feedback, not networking, staying in a comfort zone.
 

Key Takeaway:

Sometimes, avoiding stupidity is easier than chasing brilliance. Solve problems by eliminating bad decisions first.