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What is First-Principles Thinking?

Have you heard of first-principles thinking? It’s how some of the most successful and powerful people think. This type of thinking is nothing groundbreaking, but it is arguably the single most consistent factor among great thinkers.

Put simply, first principles thinking is the practice of questioning every assumption you have about a given problem or situation– and then creating completely new solutions and knowledge from scratch. It’s a powerful way to break out of the ‘herd mentality’ and to innovate brand new solutions to existing problems.

First–principles thinking vs traditional thinking

First–principles thinkers strip things down to their basic, fundamental truths and reason from there. Traditional thinkers, instead, reason by analogy (or by comparison to existing beliefs, assumptions and practices).

Here’s a closer look at the differences between the two:

What type of thinker are you?

Disclaimer: THIS IS NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make, and only you are accountable for the results.

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