Second-order thinking
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Second-order thinking (also called second-level thinking) involves deliberately looking beyond the immediate, obvious consequences (first-order effects) of a choice to anticipate the subsequent ripple effects, chain reactions, long-term implications, and unintended outcomes. It is a powerful mental model for superior decision-making that was popularized by investor Howard Marks in his book The Most Important Thing (2011). Seconder order thinking separates average thinkers from exceptional ones â especially in investing, strategy, leadership, and life decisions.
Second order thinking frequently discussed by investors Ray Daliom Shane Parrish (Farnam Street), and others.
See also
External thinking
- Second-Order Thinking: What Smart People Use to Outperform
- Second-order thinking: Consider the long-term consequences of your decisions.
- Howard Marks' Second Level Thinking Skills
- Be Smarter: A Crash Course in Second-Order Thinking
- What is second-order thinking?
- Ripple Effect: How Second Order Thinking Shapes Our Lives
- How To Use Second-Order Thinking For a Creative Problem-Solving Process
Videos:
- Second order thinking - video playlist, Video playlist
- Second order thinking - video playlist, Video playlist