First Principles Thinking

What is First Principles Thinking?

First principles thinking is a problem-solving approach that involves breaking down complicated problems or ideas into their most basic, fundamental elements—and then building solutions from those foundational truths. Rather than reasoning by analogy or accepting conventional wisdom, you strip away assumptions until you reach the core facts.

This method forces you to question everything you think you know and rebuild your understanding from the ground up. It's the difference between:

🏗️ First Principles

"How can we fundamentally solve this problem?"

Start with basic facts and build novel solutions

📋 Reasoning by Analogy

"How have others solved similar problems?"

Copy existing solutions with minor modifications

The First Principles Method

Il processo in sei fasi per applicare il pensiero dai primi principi:

1. 🎯 Identify the Problem

Define what you're trying to solve

Start with a clear, specific problem statement. What exactly are you trying to achieve or understand?

Example: "How can we make space travel more affordable?"

2. ❓ Challenge Assumptions

Question everything you "know" about the problem

List all the assumptions people make about this problem. Which ones might be wrong or outdated?

Example: "Rockets must be thrown away after one use" - Is this actually true?

3. 🔍 Break Down to Fundamentals

Strip away everything non-essential

Reduce the problem to its most basic elements - the physics, chemistry, or fundamental laws that apply.

Example: "What does it actually cost to put materials into space?" (fuel, materials, energy)

4. 🔬 Research Core Facts

Gather indisputable data about the fundamentals

Find the most basic, verifiable facts about your fundamental elements. Avoid opinions or interpretations.

Example: "Raw materials for rocket fuel cost X, energy required is Y, manufacturing costs are Z"

5. 🏗️ Rebuild from the Ground Up

Create new solutions using only verified fundamentals

Using only what you know to be true, build new approaches to the problem.

Example: "If we can reuse rockets, costs drop by 90%. How can we make rockets reusable?"

6. 🧪 Test and Refine

Validate your new approach

Test your first-principles solution against reality. What works? What needs adjustment?

Example: Build and test reusable rocket technology, refine based on results

Real-World Example: Tesla's Battery Strategy

The Electric Car Battery Problem

Situation: In the early 2000s, electric car batteries were prohibitively expensive, costing around $600 per kilowatt-hour, making electric cars unaffordable for most consumers.

1

Problem Statement

"How can we make electric car batteries affordable enough for mass market adoption?"

2

Challenge Assumptions

Question: "Do batteries have to cost $600/kWh?" Most experts assumed this was close to the physical limit.

3

Break Down to Fundamentals

What are batteries actually made of? Lithium, cobalt, nickel, graphite, aluminum, steel.

4

Research Core Facts

Cost analysis: Raw materials for a battery pack cost about $80/kWh when bought on commodity markets.

5

Rebuild from Ground Up

If raw materials cost $80/kWh, we need to optimize manufacturing, scale, and design to get closer to this fundamental limit.

6

Test and Refine

Build Gigafactory, optimize manufacturing processes, achieve economies of scale. Tesla reached ~$100/kWh by 2020.

Applying First Principles to Daily Life

💰 Career Planning

Conventional: "I need a college degree to get a good job"
First Principles: "What specific skills do employers actually need? How can I develop and demonstrate these skills most efficiently?"

🏠 Home Buying

Conventional: "I should buy the biggest house I can afford"
First Principles: "What do I actually need from my living space? What are the fundamental costs and benefits?"

💪 Fitness Goals

Conventional: "I need to follow the latest workout trend"
First Principles: "What does my body actually need to achieve my specific goals? What are the fundamental principles of human physiology?"

📚 Learning New Skills

Conventional: "I need to take a formal course to learn this"
First Principles: "What are the core concepts I need to master? What's the most efficient way to practice and apply them?"

Techniques for Deconstructing Problems

❓

The Five Whys

Keep asking "why" to dig deeper into the root causes. Each "why" strips away another layer of assumptions.

Example: "Why is our team unproductive?" → "Why are meetings inefficient?" → "Why do we have so many meetings?" → Continue until you reach fundamental issues.

🔄

Inversion Thinking

Instead of asking "How do I achieve X?", ask "What would prevent X?" or "What would cause the opposite of X?"

Example: Instead of "How do I be productive?", ask "What makes people unproductive?" to identify fundamental barriers.

🎭

Role Reversal

Imagine you're someone completely different approaching this problem. What would they see that you don't?

Example: "If I were a child/alien/person from 100 years ago looking at this problem, what would seem strange or unnecessary?"

🏭

Cost-Benefit Breakdown

Strip costs and benefits down to their most basic elements: time, energy, materials, opportunity costs.

Example: Don't just look at the price of a car—consider insurance, maintenance, depreciation, parking, time costs, alternatives.

⚖️

Constraint Analysis

Identify what physical, logical, or resource constraints actually apply. Many apparent constraints are just conventional thinking.

Example: "We can't afford to hire more people" → "What are the actual financial constraints? What are alternative ways to get work done?"

🔬

Evidence Hierarchy

Separate what you know from what you assume. Rank information by how well it's supported by evidence.

Example: "Everyone says this is impossible" → "What evidence exists? Has anyone actually tried? What are the physical limitations?"

Common Mental Traps to Avoid

📚 Appeal to Tradition

"We've always done it this way" is not a first principle. Question why traditions exist and whether they still serve their original purpose.

👥 Appeal to Authority

Just because experts believe something doesn't make it a fundamental truth. Experts can be wrong, especially when paradigms are shifting.

🏷️ False Categories

Don't let existing categories limit your thinking. "It's a car" or "It's a phone" might prevent you from seeing new possibilities.

⏳ Sunk Cost Thinking

Past investments aren't first principles. Focus on what's true now and what outcomes you want going forward, not what you've already spent.

🔄 Circular Reasoning

Watch for explanations that reference themselves. "It's expensive because it costs a lot" doesn't tell you why it actually needs to be expensive.

📊 Cherry-Picking Data

Don't just look for evidence that supports your preferred conclusion. First principles require considering all relevant data, especially contradictory evidence.

Practical Tools and Frameworks

🗂️ The Assumption Audit

Step 1: List every assumption about your problem

Step 2: Rate each assumption's certainty (1-10)

Step 3: Challenge assumptions rated below 8

Step 4: Research the fundamental facts behind each assumption

🎯 The Resource Analysis

Step 1: Identify what resources the solution actually requires

Step 2: Research the fundamental cost of each resource

Step 3: Compare to current market prices

Step 4: Identify inefficiencies and opportunities

🧠 The Child's Perspective

Step 1: Explain your problem to an imaginary 5-year-old

Step 2: What would they find confusing or silly?

Step 3: What simple questions would they ask?

Step 4: Use their questions to challenge your assumptions

🔬 The Physics Test

Step 1: Identify the physical laws that apply to your problem

Step 2: What do these laws require as absolute minimums?

Step 3: How far is the current solution from these minimums?

Step 4: What's preventing us from getting closer to the theoretical limits?

Practice: Deconstruct a Problem

Choose a Challenge and Apply First Principles

Select a problem you're currently facing and work through the first principles process:

First Principles Analysis

Clearly define the problem you want to solve List all your assumptions about this problem Challenge each assumption - which ones might be wrong? Break the problem down to its most basic elements Research the fundamental facts about these elements Build new solutions using only verified fundamentals Test your first-principles solution

Good Problems to Practice With

"How can I save money on my monthly expenses?"
"What's the best way for me to learn a new skill?"
"How can I be more productive at work?"
"What type of exercise routine would work best for my goals?"
"How should I approach finding a new job or career?"