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MTM 6 - Inversion: The Unconventional Art of Thinking Backwards

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ModelsThatMatter

Jul 27, 2025 11 Minutes Read

MTM 6 - Inversion: The Unconventional Art of Thinking Backwards Cover

Not long ago, I found myself staring at a blank page, desperate to figure out why a key project kept falling apart. Instead of obsessing over self-help books (and another bucket of coffee), I tried a different approach: What if I simply listed every way this project could go wrong? This unexpected flip—what Charlie Munger snappily calls 'Inversion Thinking'—shook loose answers I never would have seen if I'd kept thinking head-on. If you’re like me and sometimes overcomplicate decisions, you’ll find that approaching your biggest challenges from the end backward isn’t just clever math—it’s a survival manual for the digital age. Ready to get a little weird and a lot wiser? Let’s dive in.

Section 1: Daring to Think Backwards—Why Inversion Feels Unnatural (But Works Wonders)

If you’re like most people, your instinct is to look for solutions. You see a challenge, and your mind races to fix it, to move forward, to build. That’s natural. It’s how we’re wired. But what if, instead of charging ahead, you stopped and asked: “How could this go wrong?” This is the essence of inversion thinking—an approach famously championed by Charlie Munger, the legendary investor and vice chairman of Berkshire Hathaway. It feels counterintuitive, even uncomfortable, but research shows that thinking backwards can be the difference between success and disaster.

We’re Wired to Seek Solutions—But Inversion Flips the Script

From the time you’re young, you’re taught to solve problems. Teachers hand out math puzzles, managers set targets, and you’re expected to find answers. But inversion asks you to do something different: hunt for problems, not just solutions. Instead of asking, “How do I succeed?” you ask, “How do I fail?” It’s a subtle shift, but it changes everything.

Charlie Munger puts it simply:

“All I want to know is where I’m going to die, so I’ll never go there.”
This isn’t just clever wordplay. It’s a mental model that helps you avoid the obvious pitfalls—the kinds of mistakes that can undo years of hard work. Studies indicate that by focusing on what to avoid, rather than only what to pursue, you can dramatically improve your odds of long-term success.

Personal Anecdote: The Promotion I Never Got

Let me share a story. Years ago, I was up for a promotion. I did everything right—at least, that’s what I thought. I worked late, volunteered for projects, and made sure my achievements were visible. But I never once stopped to think, “What could get me fired?” I was so focused on impressing my boss that I ignored the subtle office politics, the importance of building alliances, and the risks of overpromising. In hindsight, I sabotaged my own chances by refusing to think about what might go wrong. If I’d used inversion, I would have asked myself: “What are the behaviors or mistakes that could derail my progress?” That simple question might have changed everything.

Creativity or Paranoia? Why Skeptical Thinking Wins in Business

At first glance, inversion can feel like paranoia. Why dwell on failure? Isn’t optimism the fuel of innovation? There’s a fine line, but the truth is, skeptical thinking often trumps blind optimism—especially in business. When you only look for upside, you miss the hidden traps. When you ask, “How could this project fail?” you force yourself to see blind spots and anticipate risks.

Munger is famous for saying,

“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
This is the heart of inversion. You don’t need to be a genius; you just need to avoid making big mistakes. Research supports this: organizations that use inversion and other mental models to identify risks are better at avoiding costly errors and improving decision-making.

  • Inversion is not about negativity. It’s about clarity. By thinking backwards, you see what others miss.
  • It’s a process: Define your goal, invert the problem, identify causes of failure, and adjust your plan.
  • It applies everywhere: business, investing, even personal productivity. The principle is universal.

When you embrace inversion, you’re not just being cautious—you’re being strategic. You’re training your mind to spot the cracks before they become chasms. It’s uncomfortable, yes. It goes against your instincts. But as countless leaders and thinkers have discovered, the willingness to think backwards is often what sets apart those who thrive from those who stumble.


Section 2: Blind Spots, Poker Hands, and Dodging Corporate Landmines—the Practical Magic of Inversion

Section 2: Blind Spots, Poker Hands, and Dodging Corporate Landmines—the Practical Magic of Inversion

When you’re making decisions in business, you’re rarely dealt a perfect hand. In fact, most days feel like you’re sitting at a poker table, peeking at your cards, and realizing you’ll never see the whole deck. But here’s the trick: you don’t need to play the best hand every time. You just need to avoid playing the worst one. This is where the unconventional art of inversion comes into play—a mental model championed by Charlie Munger, who famously said, “All I want to know is where I’m going to die, so I’ll never go there.”

Business as Poker: Playing to Avoid the Worst Hand

Think about the last big decision you made at work. Did you have all the information? Probably not. That’s the reality of business—uncertainty is the norm. But you can still make smart moves by focusing on what not to do. In poker, the best players aren’t always the ones who win the most hands; they’re the ones who fold when the odds are stacked against them. They avoid catastrophic mistakes.

Research shows that using inversion—thinking backwards from failure—helps you sidestep the biggest risks. Instead of asking, “How can I win?” you ask, “How could I lose?” and then work to avoid those pitfalls. This shift in perspective is deceptively simple, yet incredibly powerful.

What Kills Companies? Learning from Overlooked Mistakes

It’s tempting to believe that companies fail because they lack brilliant ideas or bold vision. But more often, it’s the overlooked mistakes—the blind spots—that prove fatal. Consider Kodak, a company that once dominated the photography industry. Their downfall wasn’t a lack of innovation; they actually invented the digital camera. The problem? They failed to act on it, fearing it would cannibalize their film business. They didn’t ask, “What could destroy us?” and missed the obvious threat.

Another example is Blockbuster. They saw Netflix coming but dismissed the threat, clinging to their old business model. If they had inverted the problem—asking, “What would put us out of business?”—they might have recognized the danger of digital streaming and adapted sooner.

“Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Step by step you get ahead, but not necessarily in fast spurts. But you build discipline by preparing for fast spurts. Slug it out one inch at a time, day by day. At the end of the day—if you live long enough—most people get what they deserve.” — Charlie Munger

The Wild Card: What If You Tried to Get Yourself Fired?

Let’s flip the script. Imagine you’re the CEO, and your goal is to get yourself fired as quickly as possible. What would you do? Maybe you’d ignore customer feedback, alienate your best employees, or make reckless investments. This hypothetical exercise isn’t just a thought experiment—it’s a practical application of inversion.

By outlining all the ways you could sabotage your own company, you create a roadmap of what to avoid. You’re not dreaming up success; you’re dreading failure. This approach forces you to confront uncomfortable truths and blind spots that you might otherwise ignore.

Identifying Risks by Dreading, Not Dreaming

Most strategic planning sessions are filled with optimism. Teams brainstorm new products, markets, and growth opportunities. But the real value often comes from asking, “What could go wrong?” Studies indicate that organizations that systematically identify and address risks are more resilient and adaptable.

Inversion isn’t about pessimism; it’s about realism. It’s about recognizing that your blind spots—those things you don’t want to think about—are often where the biggest dangers lurk. By dreading what could go wrong, you prepare yourself to dodge the corporate landmines that have tripped up so many before you.

In practice, this means building processes that encourage critical thinking and honest reflection. It means rewarding team members who point out flaws, not just those who champion new ideas. And it means accepting that sometimes, the smartest move is simply not to make the dumbest one.


Section 3: Inversion in Action—From Big Goals to Daily Decisions

When you set out to achieve something meaningful—whether it’s building a business, nurturing relationships, or simply living a happier life—your first instinct is probably to ask, “What should I do to succeed?” But what if you flipped that question? What if, instead, you asked, “What would guarantee my failure?” This is the heart of inversion thinking, a mental model championed by Charlie Munger and other great decision-makers. Research shows that by focusing on what to avoid, rather than only what to pursue, you can sidestep common traps and make smarter, more resilient choices.

Applying inversion to your personal ambitions is surprisingly honest. Defining how you could fail forces you to confront uncomfortable truths and blind spots you might otherwise ignore. As Munger famously put it, “All I want to know is where I’m going to die, so I’ll never go there.” It’s a tongue-in-cheek way of saying that avoiding stupidity—rather than chasing brilliance—often leads to long-term advantage.

So, how do you actually put inversion into practice? Let’s break it down into a simple, actionable process:

First, define your challenge. Be specific. Maybe you want to grow your career, strengthen your health, or improve your relationships. Write it down. Clarity matters.

Next, flip it. Instead of asking, “How do I achieve this?” ask, “What would guarantee I fail at this?” For example, if your goal is to become a respected leader, ask, “How could I lose the trust of my team?” Suddenly, the answers start pouring in—ignore feedback, break promises, take credit for others’ work. These are the behaviors that would torch your progress.

Then, spot the danger zones. Look for patterns in your inverted answers. Are there recurring themes—like poor communication, lack of discipline, or ignoring warning signs? These are your personal danger zones, the places where you’re most likely to stumble.

Finally, make a NOT-to-do list. This is where inversion becomes practical. Instead of only focusing on what to do, you now have a clear list of what to avoid. Research indicates that leaders who actively identify and steer clear of these pitfalls make better decisions and achieve more consistent results.

Let’s ground this with a real-world example. Suppose your goal is to live a “happy life.” That’s a big, fuzzy ambition. But if you invert it and ask, “How do I guarantee misery?” the answers are oddly clarifying. You might list: hold grudges, compare yourself constantly to others, neglect your health, avoid meaningful relationships, or spend all your time worrying about things you can’t control. Suddenly, the path to happiness isn’t just about chasing joy—it’s about sidestepping these obvious sources of misery. As strange as it sounds, the process of defining failure can be bizarrely empowering.

On a personal note, inversion thinking has helped me catch blind spots before they became costly mistakes. Early in my career, I was obsessed with productivity hacks—always searching for the next tool or system to get more done. But when I inverted the problem and asked, “How could I guarantee burnout?” the answers were sobering: never take breaks, say yes to everything, ignore my health, and treat rest as a weakness. It was a wake-up call. By focusing on what not to do, I was able to set boundaries, prioritize rest, and ultimately become more effective without sacrificing my well-being.

Inversion isn’t about pessimism. It’s about clarity. It’s about seeing the full landscape of your decisions—both the peaks and the pitfalls. When you apply inversion to your biggest goals and your smallest daily choices, you gain a powerful edge: the ability to avoid the obvious mistakes that derail most people. As Munger reminds us, “It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” In a world obsessed with chasing success, sometimes the smartest move is simply to avoid failure.

So, as you move forward—whether you’re aiming for a promotion, a stronger relationship, or a richer life—don’t just ask what you should do. Ask what you should never do. The answers might surprise you, and they just might change everything.

TL;DR: Flip your thinking: Instead of chasing success, pinpoint what leads to failure—and avoid it. Charlie Munger’s inversion mental model isn't just a quirky thought experiment; it's your shortcut to sharper, safer decision-making in business and beyond.

TLDR

Flip your thinking: Instead of chasing success, pinpoint what leads to failure—and avoid it. Charlie Munger’s inversion mental model isn't just a quirky thought experiment; it's your shortcut to sharper, safer decision-making in business and beyond.

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