In the latest episode of his excellent mini-series, Nassim Nicholas Taleb discusses an introductory lesson on fat-tails using the example of Bill Gates, Warren Buffett, or Jeff Bezos compared to the global population. Here’s an excerpt from the episode: Welcome back to the series on statistics and probability, especially probability. … Read More
Nassim Nicholas Taleb: Don’t Tell Me What You Think, Tell Me What You Have In Your Portfolio
In his book – Skin In The Game, Nassim Nicholas Taleb shares an interesting story that highlights what he means by having skin in the game as it relates to the world of finance and investing. Here’s an excerpt from the book: I went on television once to announce a … Read More
Nassim Taleb: Make Lemonade Out Of Lemons During Periods Of Uncertainty
In a recent interview with RT, Nassim Taleb discussed how we can navigate through the uncertainty into a post-pandemic future. During the interview Taleb provided some great insights into how a number of entrepreneurs are making lemonade out of lemons during this period of uncertainty saying: NT: Let me tell you … Read More
Nassim Taleb: Advised Tail Risk Fund Returned 3,600% in March
Here’s an article from Bloomberg which reports that a tail-risk fund advised by Nassim Taleb returned a staggering 3,612% in March. Here’s an excerpt from the article: A tail-risk hedge fund advised by Nassim Taleb, author of “The Black Swan,” returned 3,612% in March, paying off massively for clients who … Read More
Nassim Taleb: Why Are We Bailing Out Companies That Spent Their Cash And Took On Debt
Here’s a great short interview with Nassim Taleb on Bloomberg in which he discusses the Coronavirus as being a ‘White Swan’ not a ‘Black Swan’ event, as well as his thoughts on bailing out companies that spent their cash and took on debt over those that had a cautious attitude. … Read More
Nassim Taleb: Why It’s Better To Panic Early
Here’s a great little video by Nassim Nicholas Taleb and Yaneer Bar-Yam discussing the overreaction to the Coronavirus and why its better to panic early. Here’s an excerpt from the discussion: You and I to conclude…You and I would rather be blamed for overreacting. That’s right. Okay, I want to … Read More
Nassim Nicholas Taleb: If You Read An Investment Proposal That Looks Like An Investment – Don’t Invest!
Here is Nassim Nicholas Taleb being interviewed about his book Skin in the Game, by author and journalist Katrine Marçal. He explains the concepts of Skin in the Game and Soul in the Game. He also talks about rationality and honour. Taleb is not a fan of economists Paul Krugman, … Read More
Nassim Taleb: Just How Do People, Ignorant Of What They’re Trading, Succeed?
Here’s an excerpt from Nassim Taleb’s Book – Antifragile, in which he discusses how people, who are ignorant of what they’re trading, can be successsful, saying: My intellectual world was shattered as if everything I had studied was not just useless but a well-organized scam—as follows. When I first became … Read More
Nassim Nicholas Taleb: If An Investor Has A Risk Of Terminal Blowup, The “Potential Returns” Of His Strategy Are Totally Inconsequential
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 – Just Because An Investor Makes Money Doesn’t Mean They’re Good
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. … 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 … 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 … 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, … 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: … 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. … Read More