I have been doing quite a bit of reading about mental models in helping me in areas of decision-making, relationships and investing. I have been drawn to people such as Charles Munger, Michael Mauboussin and most recently Shane Parrish and his Farnam Street Blog
As I have been absorbing all these mental models (over 100 and counting), I realized that, in my opinion, there was not enough emphasis put on the MasterMind Alliance or even if it was considered to be a mental model. In my humble opinion, it should be the most important one and most powerful. This concept goes back to Andrew Carnegie and Napoleon Hill and there are numerous websites and information on this. Exactly what is a mastermind alliance?
According to Napoleon Hill the definition is:
“The coordination of knowledge and effort of two or more people, who work toward a definite purpose, in the spirit of harmony. No two minds ever come together without thereby creating a third, invisible intangible force, which may be likened to a third mind (the master mind).”
In recent times we see such alliances as Warren Buffet and Charles Munger, Steve Jobs and Steve Wozniak and Bill Gates and Paul Allen. There are certainly more and I would be interested in seeing the length of time that a mastermind alliance would normally last. Of course, in the case of Warren Buffet and Charles Munger that would be an extraordinary length of time for the alliance to last.
This subject has opened up an entirely new avenue for me to explore and how I can use this information to become as I stated earlier a better decision-maker, investing in relationships and working on the process as compared to the outcome of my investments. I am going to be writing more on this subject and mental models shortly.
Here is a video about mastermind alliances from Napoleon Hill for your enjoyment: