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Maybe the real takeaway from his story is to bet big in a new market to get rich. And if you lose it all, earn more and do it again. It would have happened in

by lullab 4y ago

Maybe the real takeaway from his story is to bet big in a new market to get rich. And if you lose it all, earn more and do it again. It would have happened in the early days of the internet just the same. Yes, it's incredibly risky but at least it has a better chance than playing the lottery. Like Nassim Taleb says, bet on things with a limited downside and unlimited upside. And if you don't try, nothing will happen.

hgsgm 4y ago
2devnull 4y ago
“things with a limited downside and unlimited upside” Penny stocks and junk bonds, a classic recipe for attaining mega wealth.
- eyphka 4y ago
  That is how Warren Buffet got started, or as he called them, used cigarbuts.
  - ffggffggj 4y ago
    It also helped that his father was a congressman and stock trader who brought Buffet around his finance friends throughout his youth and helped him start buying stocks as a young teenager.
- lullab 4y ago
  Theoretically yes. Even putting it all on black in Vegas could work. But it doesn't mean you should do it. Any investment is inherently a gamble, some are riskier than others and some have a too small payoff for the risk.
jrm4 4y ago
I mean, lets get Taleb exactly right here: He basically says don't invest "moderately," -- like putting your large amounts of money in stocks, even index funds, is a bad idea. Invest in both extremes, barbell style. Put MOST of it in something bulletproof (he goes with Treasury Bonds) and then the rest as big bets on long shots.
- johanvts 4y ago
  Really depends on you goals and also current financial security. I would rather receive 50.000$ than a 10% chance at 500.000$. But a richer person would probably choose the latter.
  - jrm4 4y ago
    Sure, but one of the big points of "The Black Swan" is that your (and everybody's) percentages numbers are way less reliable than you think.
doliveira 4y ago
That's a pretty big advantage rich people have as well: knowing they won't starve to death if they fail.

by lullab 4y ago

hgsgm 4y ago

2devnull 4y ago

“things with a limited downside and unlimited upside” Penny stocks and junk bonds, a classic recipe for attaining mega wealth.

eyphka 4y ago
That is how Warren Buffet got started, or as he called them, used cigarbuts.
- ffggffggj 4y ago
  It also helped that his father was a congressman and stock trader who brought Buffet around his finance friends throughout his youth and helped him start buying stocks as a young teenager.
lullab 4y ago
Theoretically yes. Even putting it all on black in Vegas could work. But it doesn't mean you should do it. Any investment is inherently a gamble, some are riskier than others and some have a too small payoff for the risk.

jrm4 4y ago

I mean, lets get Taleb exactly right here: He basically says don't invest "moderately," -- like putting your large amounts of money in stocks, even index funds, is a bad idea. Invest in both extremes, barbell style. Put MOST of it in something bulletproof (he goes with Treasury Bonds) and then the rest as big bets on long shots.

johanvts 4y ago
Really depends on you goals and also current financial security. I would rather receive 50.000$ than a 10% chance at 500.000$. But a richer person would probably choose the latter.
- jrm4 4y ago
  Sure, but one of the big points of "The Black Swan" is that your (and everybody's) percentages numbers are way less reliable than you think.

doliveira 4y ago

That's a pretty big advantage rich people have as well: knowing they won't starve to death if they fail.