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The first principle of thinking is a way to decompose and think about the facts that are difficult to change things as really necessary elements rather than "Everyone is saying that".
In terms of investment, rather than buying popular products as it is, it is to think about what you invest for, what conditions are required and what risks are accepted.
It is often spoken as an entrepreneur’s thinking method, such as Eron Mask, but it can be used in investment, work, study, and sub-business. In particular, as a beginner, it is possible to reduce the misunderstandings of judgement by decom ing "Why choose it" before it flows to SNS and popular ranking.
First Con まず
The first principle thinking is not a way to deny all common sense.
It is a tool to think back to a really positive premise.
Many people assume:
- Everyone is doing
- It is normal in the industry
- It is said to be
- SNS
- The famous
Of course, common sense and examples are useful. I get tired if I think from zero every time.
However, in a major judgment of money, work, and life, it may be dangerous to use common sense as it is.
In the first principle thinking, I will stop there.
Is it really necessary?
I will rethink from here.
The Meaning of First Principle Thinking
If you simply say the first principle of thinking, it is a way to decompose things to the basic elements that are difficult to separate.
For example, this is a common idea for investment.
Everyone buys Orkan.
This is a comparative thinking.
Not bad. There are reasons for popular products. Low- and easy-to-disperse products can be a great choice for beginners.
However, the first principle of thinking does not stop there.
First, check the purpose of the first.
- Increase your assets
- Inflation
- I want to make post-age funds
- I don’t want to lose a lot in short term
- I want to keep in mind
Next, disassemble to the condition that meets the purpose.
| Required conditions | Why you need |
|---|---|
| Long-term | To prevent short-term movement |
| Distributed | Not dependent on one country or company |
| Low cost | Long-term fee difference |
| Learn how | Because it does not sell when it falls |
| Meet your risk tolerance | Because investments that cannot be continued are weak as designs |
If you disassemble it so far, it will be changed to "Choosing as it fits your purpose" rather than "buy because it is popular".
This difference is large.
Why invest?
The reason why the first principle thinking is useful by investing is that common sense changes.
In the past, it was often said as follows:
- Bank deposit is safe
- Buy home
- Incorporating a company
- Only enough of stock
- Highならidend Hard
There is a reason why I saw it in that era.
However, interest rate, price, population, exchange rate, work style, tax system, industrial structure change. If you bring the common sense of the past as it is, the premise may be disappointed.
The fear of investing is not to check the premise from the wrong conclusion itself.
“It’s from the past.”
“Everyone is doing that.”
If you decide only the two, it is weak when the market changes.
The first principle of thinking is to correct it.
Examples of investment
Is home an asset?
There is a common word, "houses are assets".
This is half correct and half。.
If you think in the first principle, change the question first.
Home
not
How to optimize housing and living stability?
Home
The elements to be seen are:
| s | How to check |
|---|---|
| Housing | Total burden of rent and m gage |
| Liquidity | Where to Buy |
| Maintenance fee | Repair fee, management fee, fixed asset tax |
| Future Value | Population, location, building age, demand |
| Life Value | Commuting, Family, Education, and Security |
In other words, buying is not the purpose.
The purpose is to secure a place where you live and make the stability of life and the persistence of the household.
The answer to "buy" and "rental" will change depending on the person.
Is Highはidend Safe?
High dividends are also the theme that beginners can misunderstand.
When the dividend is high, it looks safe.
However, the original dividend is corporate profit and cash.
idends may be reduced if corporate performance becomes worse. If the stock price is large, the loss may be higher even if the dividend is paid.
If you disassemble it with the first principle, this will happen.
| View | Reason |
|---|---|
| Profit | Is it possible to make a dividend? |
| Sales CF | Can I earn cash? |
| idend | Is it impossible to divide |
| 財務 | Is the dividend not included in the debt? |
| Business Stability | Higher risk of deduction |
It is not safe because the dividend yield is high.
It is important to decompose the reason for high dividends.
How to think first
You don’t have to think difficult.
3 steps
STEP1:Suspicious assumption
First, write a prerequisite for the current judgment.
For example:
- Do you really need a company every day?
- Do you really need new cars?
- Do you really need individual shares?
- Do you really need that insurance?
- What is the most popular product for you?
It is important here that it does not enter from negligence.
Instead of determining "no need", I think that it is something that can be really necessary.
STEP2: Disassemble
Next, divide it into objects and elements.
If you invest, you can decompose the asset formation as follows:
- 利回り
- Cost
- Taxes
- Risks
- Time
- Liquidity
- 自分のメンタル
The last "メンタル" is surprisingly important.
Theoretically, if you are a good investment, but you are not able to endure at the time of fall, it is a design mistake.
STEP3: Zero Base
At the end, I think of common sense.
What should I choose from?
Use this question:
For example, if you already have an investment trust that you already own, you can check whether you want to choose the same product even if you buy it now.
Easy to use scene for beginners
How to use money
For example, you want the latest smartphone.
If you think in the first principle, first of all, it is part of "Why do you want?"
- Camera performance required
- Increase work efficiency
- Battery Limit
- I want to change the appearance and mood I want to buy around
What is your life and work?
Disassembly to this point makes it easy to see whether to buy or to type down, or what to do with the current model.
Selecting investment products
It is the same as choosing investment products.
You can check the following instead of choosing only the popular ranking.
- Is there a low fee?
- Is it distributed?
- What are you investing in?
- Is it possible to have long-term value movement?
- Can I use tax benefits?
- Do you fit your purpose?
This is quite different.
See the purpose and conditions ahead of the product name.
This is the first principle.
Notes
There is a weakness in the first principle thinking.
If you think from scratch, you get tired.
It is not necessary to think about everything in daily life.
Buy clothes, choose lunch, buy daily goods. There is no time to decompose such a small judgment every time.
Basics are common sense.
It is enough to dig deep into large money, long-term impact judgment, and judgment that is easy to flow to people.
Insufficient information makes a mistake
The first principle of thinking does not mean that it is correct if you think only yourself.
You need the right material.
- Data
- History
- Market Structure
- Tax
- Products
- Risk Examples
Even if you say "I thought myself" without seeing these, if the premise is wrong, the conclusion will be wrong.
In particular, it is important to check past data, systems, fees and risks.
Figure: The flow of thinking first principle
The first principle of thinking is a thinking method that doubts common sense and breaks down to the essence.
This is especially useful for investment.
Because investments are popular, social media information, atmosphere, and past success experiences.
“Why buy it?”
What do you want to achieve?
"What is the required conditions?"
The judgement is quite calm just by thinking about this three.
However, you don’t have to think about everything from scratch. It is enough to make important decisions.
Back to the premise in a fair place while using common sense.
If this is used, it will be difficult to penetrate into fashion even in investment and work.
Reference
- Investor.gov, Investing Basics
- Date: 2026-05-26