Inversion is a method of problem-solving or decision-making where one looks at a situation or problem backwards or upside down. It involves identifying and avoiding the worst options or potential negative outcomes, rather than focusing solely on finding the best or most successful options.
The goal of inversion is to increase the chances of success and avoid potential pitfalls. This method is often used in mathematics, business, and decision-making.
"Invert, always invert: Turn a situation or problem upside down. Look at it backward. What happens if all our plans go wrong? Where don't we want to go, and how do you get there? Instead of looking for success, make a list of how to fail instead - through sloth, envy, resentment, self-pity, entitlement, all the mental habits of self-defeat. Avoid these qualities and you will succeed. Tell me where I'm going to die, that is, so I don't go there." — Charlie Munger
Charlie Munger, Vice Chairman of Berkshire Hathaway, has spoken about the use of inversion in various interviews and speeches.
One example is when he was selected to give a commencement speech at Harvard-Westlake, a private school in Los Angeles, where he has been a trustee. In order to determine what to say in his speech, Munger asked himself which of the previous commencement speeches he wished were longer.
He finally settled on a prior speech given by television host Johnny Carson, which specified his prescriptions for guaranteed misery in life. Munger decided to repeat Carson’s speech but in an expanded form with some added prescriptions of his own.
He identified the points for a miserable life to avoid them at all costs, such as addiction, resentment, being unreliable, letting life knock you down and refusing to learn from past mistakes. Munger's speech is an example of how he used inversion to identify the things he wants to avoid in life, in order to increase the chances of having a happy life.
"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." — Charlie Munger