Audio wrote:
What are your thoughts on
Black Swan? I'm reading it atm, and while the main idea is interesting - extreme, "Black Swan" events can drastically affect your life - the theme can be resumed in 2 sentences. Moreover, the author's arrogance is literally without limits (good thing that he went to Wharton, great publicity
).
What do you guys think?
I'm reading its parent book "Fooled by Randomness", but it appears that both books treat of the same "rare event" idea.
To someone who wants to understand how traders make money, I find it interesting so far. Quite honestly after reading halfway through I get the feeling that trading is just gambling really. I've always thought that the huge amounts of money that traders make are outrageous; I simply do not understand how they create economic value. Taleb says in his book that high yield traders eventually end up blowing up (because they take more risk), while others who stick to more conservative trading strategies last longer. However, that fact alone does not make me feel any better, because those traders who made millions by taking on a lot of risk did not lose their fortune; only their jobs. What's totally sick in traders' compensation is that you may take huge risks for years, get lucky, make huge returns and take a fat bonus check home, but the day you blow up you only lose your job.
By the way Audio, Taleb is a staunch critic of MBAs. I recall one sentence in his book where he says that he is the "unhappy holder of the degree".
But yeah I do agree about his arrogance... Disgusting and disrespectful of others (e.g. looking down on janitors, dentists).
Great thread by the way!