Fooled by Randomness by Nassim Nicholas Taleb | How to Handle Uncertainty in Markets & Life (TIP609)

Clay reviews Nassim Taleb’s book - Fooled by Randomness.
Nassim Taleb is a Lebanon-born American mathematician and statistician whose work concerns problems of randomness, probability, and uncertainty. He’s very well known for his popular books, including The Black Swan, Antifragile, Skin in the Game, and Fooled by Randomness.
IN THIS EPISODE YOU’LL LEARN:
0:00:00 - Intro
0:02:41 - The role of luck in investing.
0:04:38 - Why we should develop a sense of skepticism and humility.
0:08:27 - Why humans are more prone to make investment decisions based on emotions rather than facts and probabilities.
0:17:19 - Why it’s so important to understand alternative histories.
0:35:48 - What the firehouse effect is.
0:46:34 - Biases that get investors into trouble, such as the survivorship bias and the endowment effect.
0:49:49 - The story of a trader who got married to his positions which ended up being a value trap.
0:55:04 - How Taleb’s investment strategy capitalizes on asymmetric opportunities.
0:53:48 - What chaos theory is.
0:58:35 - Distinguishing a good process from a good outcome.
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📖 BOOKS MENTIONED:
- Fooled by Randomness by Nassim Taleb: amzn.to/3uEuRKP
- Antifragile by Nassim Taleb: amzn.to/3I52nNr
- The Black Swan by Nassim Taleb: amzn.to/4bFobwF
- Skin in the Game by Nassim Taleb: amzn.to/4bLQycw
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[@WeStudyBillionaires]

📌 Check out this video next: kzbin.info/www/bejne/Z3jRhWSgrbRrq6M ⚠ IMPORTANT: Please beware of cyber scams and phishing attacks. We will never ask for your contact info in the comments section. Kindly report suspicious accounts you see below. Thank you!

[@ray-mc-l]

The thumbnail with his face made me think this was gonna be an interview

[@sathvik3441]

Me too 😑

[@HaruSakamoto]

Sometimes we can get a lot more insights from summarizing someone's work than having the actual person on interview

[@Money__Matters007]

It's great to be able to have access to such comprehensive book summaries. Really like this book summaries style videos

[@clayfinck]

Happy to hear that. Will keep more coming!

[@skmirch]

​@clayfinck great summary! Thank you!

[@WeStudyBillionaires]

Glad you think so! 📖

[@yankeedoodle6293]

Loved this episode. I always wondered what the book “fooled by randomness was about. Now it’s clear. Thank you!

[@WeStudyBillionaires]

Glad you enjoyed it! 🙌

[@dannthegentleman4261]

Make a video on "What I learned about investing from Darwin"! That really catch my attention, and you are great at showcasing books!

[@clayfinck]

My co-host, Kyle Grieve, covered this on episode 597. I love that book by the way! One of the best.

[@janshuster1426]

Is the synopsis " Everything Drops " ?

[@WeStudyBillionaires]

Our host, Kyle covered it here: kzbin.info/www/bejne/ZqqzhK1mrNStn9k Enjoy! 📖💡

[@sarawilde7493]

Love this channel! Thank you, Clay and team! 😊❤

[@WeStudyBillionaires]

Thanks for the support! ❤

[@colerobillard1909]

Fantastic book.

[@sherlockhobbes423]

Good timing for this lesson 💪🏻

[@WeStudyBillionaires]

Glad to hear it! 💡

[@dilpickel22]

Just finished Black Swan today ;D Thanks for the video!

[@WeStudyBillionaires]

Thanks so much for tuning in! 🙏

[@clayfinck]

Glad you enjoyed it!

[@Johnny-dh2pj]

God bless you brother thank you

[@WeStudyBillionaires]

Thank you for tuning in! 💡

[@p0ice72]

Just discovered ur channel great content ❤

[@WeStudyBillionaires]

Welcome aboard! 🎉

[@mahdi5796]

Good job. I like this style of videos by this host

[@WeStudyBillionaires]

Thank you so much for watching! 🙏

[@gisellmorales5007]

Thank you so much for this video! So important to have the right mind and be in the right state to be a good investor. I pray and learn everyday to be an intelligent one👍THANK YOU!!!

[@WeStudyBillionaires]

Best of luck on your investing journey! 🙌

[@lesleyjohnson8488]

Thanks for this wonderful analysis of one of my fave books of all time. Have you considered highlighting Mark Spitznagel and his system at Universa?

[@clayfinck]

I interviewed Scott Patterson back on episode 558. He wrote a book called Chaos Kings. That interview should hit on a lot of the high points!

[@WeStudyBillionaires]

You can watch Clay's interview with Scott Patterson, author of Chaos Kings here: kzbin.info/www/bejne/qqnCq2Ola7SVhrc Enjoy! 💡

[@lesleyjohnson8488]

@@WeStudyBillionaires Thank you! It’s on my watch list now ❤️

[@VasudevaNaidu]

excellent

[@WeStudyBillionaires]

Thank you so much! ♥

[@PRAVEENMARUTHURMANA]

Thanks for your awesome videos. I'm an investor from India. I invest in both Indian and US equities. Your videos are really helping.

[@WeStudyBillionaires]

Thank you so much for the support!

[@RolfStumpfRailMedia]

After having read Black Swan a few months ago there seem to be recurring elements of it in Fooled by Randomness (or vice versa). Anyways, another good and well-prepared episode 👍

[@clayfinck]

Thank you!

[@WeStudyBillionaires]

Thanks for tuning in! 🎉

[@Kornheiser10]

Actually, you neet to read this book at least 5 times to begin to get it's true wisdom.

[@gagansingh-kb6gu]

I have another idea too. We have too nukes but I saw people as they have forgotten. We may be the last generation to walk earth

[@brianbirnbaum9760]

It’s an echo chamber. Not an eco chamber.

[@scarfacecapital.]

Nero wasn't averse to losing money, he only dreaded the prospect of ruin. Taleb has, in many of his talks and interviews spoken about how the urge to make money consistently will lead to a blowout event. He cites the example of option sellers to make this point. So when you bring up Morgan housels verbal diarrhoea on long term success vs event driven successes and somehow align that with Neros thinking, I am afraid to say that you've totally missed the point of the book.

[@KamilMauel]

Good point of a calm market after the 9/11. It was even calmer after another black swan: Trump victory. 2017 was the least volatile year in history.

[@WeStudyBillionaires]

Thanks for watching! 🙏

[@blaquiere141]

A 90 000$ income makes people happier than a 100 000$ income because with 100k, people start to live and spend like people who make 100k and end up having the same financial stress than the people that are making 50 000$ a year.

[@coolmagnifico]

Video just too long. Lose my focus after half of this vid