Filtered Pools

Filtered Pools

The Mental Model of Filtered Pools: Striking Gold in the Unlikely

Hello, it's Ken here. Riding the waves this morning, I mused on how sometimes the most unexpected paths lead to the most splendid treasures. This contemplation brought me back to a concept I first stumbled upon in a Reddit comment - the intriguing mental model of filtered pools. Eager to delve deeper, I went back to the link from that comment - a thorough exposition on Searching for One-sided Tradeoffs. Let's navigate this together.
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Deciphering Filtered Pools

Filtered pools are essentially segments or groups overshadowed due to a myriad of reasons, often biases or overlooked criteria. By unlocking the potential of these pools, one opens up unconventional avenues of opportunity. It's somewhat akin to finding a secret surf spot that’s untouched and pristine.

Unique Instances of Filtered Pools in Action

I like to explore with some fictional, but specific, examples:
  1. The Resume-less Recruitment: Consider TechWaves Inc., a booming tech startup. While most firms are inundated with resumes, TechWaves decided to interview only those who forgot to attach their resumes. Their rationale? Maybe those who overlook the obvious are incredibly talented in other aspects. And guess what? They unearthed some of the most brilliant minds this way.
  1. The Silent Film Maestro: In an era dominated by 3D and IMAX, Leo, a composer, has carved a niche by creating scores solely for silent films. As the world gravitates towards contemporary cinema, Leo's unique skill set makes him invaluable in the silent film community.
  1. The Analog Shutterbug: Mia, in a world obsessed with megapixels, cherishes the beauty of analog photography. Her distinct approach offers a touch of nostalgia, attracting a clientele that values the warmth of film over digital precision.
  1. The Typewriter Wordsmith: Tom’s blogging style is unique. Using a typewriter, he crafts his pieces, then scans them for his digital blog. This blend of vintage and modern gives his content a characteristic flair, drawing readers who savor a touch of the past.

Sailing Through Filtered Pools

The essence of filtered pools, as detailed in Searching for One-sided Tradeoffs, prompts us to ponder, "Where might I find value that others have bypassed?" By honing in on these areas, you set yourself on a path rich in potential yet devoid of the typical competition.
Perks:
  • Unparalleled Mastery: Dominating a less-explored domain often places you leagues ahead.
  • Scarce Competition: Fewer competitors translate to you being a preferred choice.
  • Unique Value Proposition: Offering something rare can give you a unique market positioning.
 
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Compared to other Mental Models

  1. Opportunity Cost
    Opportunity Cost    : This principle is about the potential benefits an individual misses out on when choosing one alternative over another. With filtered pools, the decision to tap into lesser-explored areas often means foregoing mainstream opportunities. Yet, the gains from these unique pools can often outweigh the mainstream options, proving the worth of the chosen path.
  1. Inversion
    Inversion    : Instead of thinking about what you want to achieve, inversion pushes you to consider what you want to avoid. Similarly, filtered pools prompt you to think about what others are avoiding (or overlooking) and how that can become your focal point of interest.
  1. Pareto Principle (80/20 Rule)
    Pareto Principle (80/20 Rule)    : The idea here is that 80% of outcomes come from 20% of causes. In the context of filtered pools, this might mean that 80% of value could come from the 20% of overlooked opportunities that others ignore.
  1. Contrarian Thinking: This is about going against prevailing sentiments. While the majority swims in one direction, a contrarian thinker chooses the opposite path. Filtered pools embody this principle by encouraging exploration of opportunities that the majority might dismiss.
  1. Circle of Competence
    Circle of Competence    : Coined by Warren Buffett, this model suggests sticking to areas one knows best. With filtered pools, it's about understanding and recognizing the potential in areas that others might not be familiar with, thus crafting your unique circle of competence.

Final Thoughts

In surfing, and in life, it’s not about chasing the biggest wave, but the right one. The filtered pools mental model accentuates the idea that often, the most bountiful treasures lie hidden away from the mainstream. When the world zigs, dare to zag. And when faced with overwhelming competition, let the philosophy of filtered pools guide you to a more tranquil and rewarding space.