This post is based on and inspired by ideas from the book Fooled by Randomness by Nassim Taleb. It’s one of the most insightful books I’ve ever read. It’s about the role of chance in life, and how we are often blind to and fooled by it.
Get it and read it.
It ESPECIALLY applies to money and the markets.
The points I make in this post are derived from his book. Here we go:
Have you ever played Russian roulette?
I’m kidding. I haven’t.
Because that’s stupid!
Because as exciting as it sounds, I just can’t stomach the worst possible outcome. It’s not an acceptable risk. Not even to play once.
No matter how smart I am (or how smart I think I am), the outcome is ruled by randomness. By chance.