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- Nassim Taleb Thinks Everyone Is Stupid
- Nassim Taleb Thinks Everyone Is StupidGoldman's Alpha FundNassim is talking science - you're talking anecdotes. Every major bank and most hedge funds have algorithmic-trading funds (Goldman's is worth $6B) that trades solely electronically without human interaction. The overuse of models that most MBAs don't understand is a real issue. Goldman's...
- Discussion threads 2008-05-15
- Nassim Taleb Thinks Everyone Is Stupid
- Wall Street's ability to plan for risk is a joke, as far as Nassim Nicholas Taleb is concerned. Taleb tells Fortune in Fear of a Black Swan that as "portfolio models got worse and worse in tracking reality, their use kept increasing as if nothing was happening....
- Blog posts 2008-05-14
Additional Resources
- Tuesday's Taste of Taleb
- Roger Nusbaum submits: Nassim Taleb is all over the web this week -- profiled in GQ, the accuracy of the GQ piece questioned by Janet Tavakoli, her questioning recapped by Clusterstock and the FT, and a news item in the WSJ about a new hedge fund that will target...
- External links 2009-06-02
- Nassim Nicholas Taleb: Blame the Bystanders to the Meltdown
- Taxpayers, retirees, "perhaps even capitalism and free society" has been mugged. What's happened in the financial markets is a crime, and it's made worse by the fact there were plenty of bystanders who stood by and watched daylight robbery, say authors Nassim Nicholas Taleb, who wrote "The Black Swan", and Pablo Triana, whose...
- Blog posts 2008-12-08
- How CNBC Squandered Roubini and Taleb
- Roger Nusbaum submits: CNBC had what could have been phenomenal business television yesterday when they managed to get Nouriel Roubini and Nassim Nicolas Taleb on for a double segment. They billed it as Dr. Doom and Black Swan.Unfortunately it was mostly squandered. Whatever you think of either one of...
- External links 2009-02-10
- MasterCard Could Be a Potential 'Black Swan'
- Sean Hannon submits: Over the past year, investors have come to expect the unexpected. As seemingly rare events became commonplace, Nassim Taleb’s “Black Swan Theory” has gained prominence as a means to explain the unexpected. According to Taleb, a black swan event appears by complete surprise, has a major...
- External links 2009-03-18
- Book Review: Soros on Soros - And the Role of a Worldview
- Warren Buffett and George Soros might be two of Americas most famous and successful investors, but Soros seems the less covered in business circles, which is odd, because I find him infinitely complex and interesting though my knowledge of him at the moment is still scant. Soros on Soros...
- Blog posts 2007-01-27
- Warren Buffet Speaks
- Warren Buffet SpeaksPeople like to move where it is warm?How quaint. Perhaps, Mr Buffett, that you mean people will like to move to pleasantly temperate areas like, say, New Orleans? AndrewPerth, Western AustraliaShifting offices is a costI like the explanation on global warming....May be what is being said would worry...
- Discussion threads 2007-05-10
- Would You Rather Be Lucky, Timely or Good?
- It's popular now to think that business success is more random than not. Books like "Good to Great" get criticized because the companies profiled have underperformed the stock market since publication. Writers like Nassim Taleb pen bestsellers arguing that financial success depends on luck, turning the random walk into a...
- Blog posts 2008-08-14
- Current Financial Crisis Is a Black Swan
- Gregory Skidmore submits: In the breakdown of our current financial system, which many deemed impossible or at least highly improbable, I believe we have witnessed the appearance of a black swan. The term black swan comes from the ancient Western conception that 'all swans are white.’ In that context, a...
- External links 2008-10-06
- Warning to bond bulls: be very afraid...
- Byline: There is no way to reliably predict the market, but all signs point to trouble for bonds As Lawrence "Yogi" Berra once said, "It is tough to make predictions, especially about the future." Not that it stops market strategists. The latest to throw...
- Research articles 2007-06-18
- Building good fences: standards writers lay the foundations for risk management
- Effective risk management is based on the identification, evaluation and control of hazards. Some hazards are foreseeable, predictable, "on model." Hazards of this type often can be addressed through statistical and other well known quality control methods. However, there is another type of hazard, one that is unforeseen, unpredictable and...
- Research articles 2008-03-01
- Bank Nationalization: Back on the Radar With Stress Test Results
- Whatever you do, don't smile when you say the words "bank nationalization." An angry radio listener accused me of being the Marlo Thomas of finance -- "Your cutesy 'That Girl' delivery ran counter to the implications of what you were saying about nationalizing our financial institutions, comrade." Nice touch with...
- Blog posts 2009-05-05
- The Wild and Crazy World of Self-Referenced Credit
- Credit Trader submits: Bloomberg is out with an article describing how Milan city officials used derivatives to bet on the default of the Italian government. While we wait for the sounds of knee caps being broken, let’s take a deep breath and think about what may be going on...
- External links 2009-05-12
- Taking Improbable Events Seriously: An Interview with the Author of ‘The Black Swan'
- The author of The Black Swan explains why the rarity and unpredictability of certain events does not make them unimportant. The scholar, trader, and author Nassim Nicholas Taleb brings a decidedly contrarian view to the world of finance, statistics, and risk. In 2007, he published...
- Articles 2009-01-12
- The Five Books You Need to Understand the Future of Global Investing
- I'm reading Mohamed El-Erian's guide to the future of global markets, "When Markets Collide." He has in it a few of the books he seems to have found most inspirational for his own well-regarded look at what's going on in world business. He cites "Freakonomics" by Steven...
- Blog posts 2008-10-28
- Why Forecasts Don't Work in Finance
- "Finance is an area that's dominated by rare events. The tools we have in quantitative finance do not work in what I call the 'Black Swan' domain," said author and former options trader Nassim Nicholas Taleb earlier this year. Events in the financial...
- Blog posts 2008-09-16
- Best Business Books of 2007, Part II
- David Leonhardt in the New York Times wrote about his favorite economics book of the year in No. 1 Book, and It Offers Solutions. In what he calls "a very good year" for books on economics, he named Shannon Brownlee's Overtreated tops, and his column tells why. It...
- Blog posts 2007-12-19
- Tweaking the Global T-Bill Theory
- Roger Nusbaum submits: Several times I have mentioned Nassim Nicolas Taleb's idea of putting 90% into a mix of t-bills from around the world and then going berserk my word not his with the other 10% in terms of risk taken. I find the concept intellectually appealing on...
- External links 2008-08-18
- BNET Bloggers on Meltdown Monday
- Talk about a crash course in finance. On Monday, the Dow Jones Industrial Average went into a veritable China Syndrome, plummeting more than 500 points, suffering its worst daily meltdown since the Sept 11, 2001 terror attacks. At the close of trading today, the index was back up 141 points,...
- Blog posts 2008-09-16
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