Nassim Nicholas Taleb: If An Investor Has A Risk Of Terminal Blowup, The “Potential Returns” Of His Strategy Are Totally Inconsequential

Johnny HopkinsNassim Taleb, Stock ScreenerLeave a Comment

Just been re-reading Nassim Taleb’s book – Antifragile: Things that Gain from Disorder, which includes a great passage on risk and a real-life example of how it applies in investing. Here’s an excerpt from the book: Under path dependence, one can no longer separate growth in the economy from risks of … Read More

Nassim Taleb: Economists Don’t Predict Better Than Cab Drivers. Typically A Little Worse, Often!

Johnny HopkinsNassim Taleb, Robert ShillerLeave a Comment

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, … Read More

Nassim Taleb: How Frequent The Profit Is Irrelevant; It Is The Magnitude Of The Outcome That Counts

Johnny HopkinsInvesting Strategy, Nassim TalebLeave a Comment

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: … Read More