---
name: munger
description: "Use when evaluating a decision through Charlie Munger-style mental models: inversion, incentives, quality filters, multidisciplinary reasoning, and concentrated judgment."
invest: ./invest.md
---

# Munger Mental Models

Use this skill to apply Charlie Munger-style judgment: invert the problem, remove obvious stupidity, examine incentives, use multiple mental models, and only act when quality and understanding are unusually high.

## When To Use

Use this skill when the user asks for:

- Mental-model analysis of an investment
- Inversion and pre-mortem review
- Incentive and management-quality analysis
- Whether a decision is inside the circle of competence
- Concentrated decision review before acting

Trigger phrases include `Munger`, `mental models`, `inversion`, `incentives`, `latticework`, `circle of competence`, and `avoid stupidity`.

## Do Not Use When

- The user needs a mechanical technical entry.
- The decision depends on short-term price action only.
- There is not enough information to understand incentives and business quality.
- The user wants confirmation of a decision they already made.

## Inputs Needed

- Company or decision context
- Business model and economics
- Incentives of management, customers, regulators, and competitors
- Known risks, unknowns, and failure modes
- Current valuation or opportunity cost if relevant

## Process

1. Invert: ask how this investment could fail badly.
2. Check circle of competence and reject what cannot be understood.
3. Examine incentives and agency problems.
4. Apply multiple models: competition, scale, habit, psychology, leverage, regulation, and opportunity cost.
5. Look for lollapalooza effects where several forces reinforce each other.
6. Decide whether the answer is obvious enough to justify concentration.

## Output Format

```md
# Munger View: [Decision]

## Verdict
Act / Wait / Pass / Too Hard

## Inversion

## Incentives

## Mental Models Applied

## Quality Filter

## Opportunity Cost

## Biggest Ways This Fails

## Missing Data
```

## Guardrails

- Do not overcomplicate what should be rejected quickly.
- Do not ignore incentives.
- Do not invest outside the circle of competence.
- Do not mistake intelligence for judgment.
- Avoid obvious stupidity before seeking brilliance.

## Questflow Use

In Questflow, this skill is best used as a decision-quality layer before launching, copying, sizing, or concentrating in a Fund strategy.