Nassim Nicholas Taleb penned an opinion piece in the Financial Times: Ten principles for a Black Swan-proof world .
Check out the piece for details behind each item:
1. What is fragile should break early while it is still small.
2. No socialisation of losses and privatisation of gains.
3. People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.
4. Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks.
5. Counter-balance complexity with simplicity
6. Do not give children sticks of dynamite, even if they come with a warning.
7. Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”.
8. Do not give an addict more drugs if he has withdrawal pains.
9. Citizens should not depend on financial assets or fallible “expert” advice for their retirement.
10. Make an omelette with the broken eggs.
If you have not read The Black Swan yet, you should. it was one of those few books that changed the way I view the world.
[…] Investments, a firm in Santa Monica, California. He is the author of several books, including The Black Swan: The Impact of the Highly Improbable. Daniel G. Goldstein is an assistant professor of marketing at London Business School and a […]
[…] you want the experience of feeding an exotic African animal, you can feed a giraffe. My two-year old enjoyed holding a big piece of lettuce up as snack for the African beasts. I even […]