One of the greatest superpowers is being able to shift between paradigms.
Now, I know what you’re thinking… “I’m not interested in birds and if you said you had two hotties I wouldn’t believe you”
No. I did not say “parakeets” or “pairs of dimes”. This can be confusing, so let me break things down for you:
Paradigms are bounded streams of thinking making up the underpinnings of epistemological perception.. Without the jargon– they’re idea sets.
These idea sets are shared by groups and drive the perspectives of individuals.
But far too often do individuals only subscribe to the paradigm of their associated group without looking at the benefits of another. It allows you to see things from another perspective situationally.
Not every paradigm is made up of a model set applicable to every problem set.
Therefore, having the ability to shift between them gives you an overwhelming edge.
One good example is delineating between neoclassical and new-economic thinking (something we preach on this site), as well as convergent vs divergent thinking.
In some cases, one paradigm will be correct, whereas in others, the other will be. It’s the job of a good decision maker to decide which paradigm fits which problem.
When it comes to private equity, venture capital, and hedge funds there are different paradigms that guide each investors. Each of these paradigms has its own strengths and limitations. Each one of those industries operates under different paradigms to achieve (relatively) the same end of IRR. Understanding each is crucial if you want to make informed decisions.
But ultimately, why should you care about paradigms?
Well– understanding where your own ideas come from can help you navigate complexity. It is something that isn’t just applicable for PE, VC, and hedge fund investments, but bleeds into everyday life.
Paradigms can help you identify the investment strategies that best align with your goals and risk tolerance, and understand others. Integrating new paradigms can help you see the world from different perspectives.
If you’re an entrepreneur seeking funding, understanding the paradigms of investors can help you tailor your pitch and align your goals with those of potential investors. It can help you better understand the priorities and concerns of investors and identify the right path to success.
It’s the discerning the right solution-set to the given problem that’s the hard part, but hopefully our QYP newsletter will sharpen your sword. Sign up today below! 
