Here’s a great extract from Nassim Taleb’s book – Fooled By Randomness in which he illustrates how some investors are perceived as being ‘great’, when in actual fact they simply started investing at the best possible moment. But as time moves on it becomes apparent that their ‘strategies’ are flawed. Taleb uses two fictional characters called Carlos and John, which … Read More
Nassim Taleb: In Investing The People You Understand Most Easily Are Necessarily The Bull***tters.
Here’s a great passage from Skin In The Game by Nassim Taleb in which he discusses how easily investors can be hoodwinked by smooth talking salepeople promising outsized returns and, how often the best investing advice comes from those least able to explain it best. Here’s an excerpt from the book: The idea of this chapter is Lindy[1]-compatible. Don’t think … Read More
Nassim Taleb: 17 Books That Every Investor Should Read
We recently started a series called – Superinvestors: Books That Every Investor Should Read. So far we’ve provided the book recommendations from: Charles Munger: 32 Books That Every Investor Should Read Seth Klarman: 32 Books That Every Investor Should Read Warren Buffett: 35 Books That Every Investor Should Read Bill Ackman: 11 Books That Every Investor Should Read Joel Greenblatt: … Read More
Nassim Taleb: Economists Don’t Predict Better Than Cab Drivers. Typically A Little Worse, Often!
Here’s a great interview with Nassim Taleb and Bob Shiller hosted by Nick Paumgarten at The New Yorker Summit. The panel is discussing economics, economists, and their role in finance. Taleb is asked the following question: Paumgarten: Is Economics Even A Science? And here is his Taleb’s response: Taleb: No, no, ask a scientist if economics is a science and they’ll … Read More
Nassim Taleb: How Frequent The Profit Is Irrelevant; It Is The Magnitude Of The Outcome That Counts
Here’s a great investing lesson by Nassim Taleb from his book Fooled by Randomness. Similarly to Michael Mauboussin in this article, Taleb makes the point that it’s not how frequently you profit from your investments that important, it’s the magnitude of the outcome that counts. Here’s an excerpt from the book: The general press floods us with concepts like bullish and … Read More
Marks on Taleb And The Self Inflicted Anxiety That Investors Create For Themselves
One of the best books ever written on investing is – Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets, by Nassim Taleb. Howard Marks recommended the book in this interview with 5 Good Questions, saying: “I like the book Fooled by Randomness by Nassim Nicholas Taleb. I think it’s got some very very valuable ideas. Dealing … Read More