We Study Billionaires - The Investor’s Podcast Network
Business:Investing
On today’s episode, 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:
00:00 - Intro.
01:37 - The role of luck in investing.
04:51 - Biases that get investors into trouble, such as the survivorship bias and the endowment effect.
10:09 - Why we should develop a sense of skepticism and humility.
15:52 - Why it’s so important to understand alternative histories.
30:47 - Why humans are more prone to make investment decisions based on emotions rather than facts and probabilities.
37:31 - What the firehouse effect is.
39:33 - The story of a trader who got married to his positions which ended up being a value trap.
48:08 - What chaos theory is.
58:54 - How Taleb’s investment strategy capitalizes on asymmetric opportunities.
62:06 - Distinguishing a good process from a good outcome.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
SPONSORS
Support our free podcast by supporting our sponsors:
HELP US OUT!
Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!
Learn more about your ad choices. Visit megaphone.fm/adchoices
TIP546: The Holy Grail of Long-Term Value Investing
BTC126: Redeeming GBTC w/ David Bailey (Bitcoin Podcast)
RWH025: Patient Capital W/ Samantha McLemore
TIP545: The Third Sea Change Has Begun w/ Howard Marks
BTC125: James Lavish On Why Bitcoin Performs From Here (Bitcoin Podcast)
TIP544: Life-Changing Returns in Cyclicals & Spinoffs
TIP543: 100 Baggers: Stocks that Return 100-1 w/ Chris Mayer
TIP542: The Crisis is Bigger Than Banks w/ Jeremy Grantham
BTC124: Bitcoin is a Strategic National Necessity w/ Pierre Rochard (Bitcoin Podcast)
TIP541: How Equity Crowdfunding is Changing the Game w/ Daniel Gallancy
RWH024: Wealth, Wisdom, & Happiness w/ Tom Gayner
TIP540: Lessons in Life and Business from a Self-Made Billionaire w/ Andrew Wilkinson
BTC123: The Legacy Banking System in Shambles w/ Alf Peccatiello (Bitcoin Podcast)
TIP539: The Banking Crisis Explained w/ Shawn O'Malley
TIP538: Richer, Wiser, Happier, Q1 2023 w/ William Green & Stig Brodersen
TIP537: The Surprising Opportunities in Commercial Real Estate w/ Ian Formigle
BTC122: The US Treasury May Need Private Stable Coins w/ Matthew Pines (Bitcoin Podcast)
TIP536: Buffett and Munger’s Principles and Mental Models
RWH023: Defensive Investing In Dangerous Times W/ Guy Spier
TIP535: Insights from the World's Top Money Managers w/ Kristof Gleich
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Money Girl
So Money with Farnoosh Torabi
The YNAB Podcast
Money Tree Investing
The Disciplined Investor