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Nassim Taleb: People Kept Telling Me I Was an Idiot

Nassim Taleb at UPenn talking about anti-fragility:

There’s something called action bias. People think that doing something is necessary. Like in medicine and a lot of places. Like every time I have an MBA—except those from Wharton, because they know what’s going on!—they tell me, “Give me something actionable.” And when I was telling them, “Don’t sell out-of-the-money options,” when I give them negative advice, they don’t think it’s actionable. So they say, “Tell me what to do.” All these guys are bust. They don’t understand: you live long by not dying, you win in chess by not losing—by letting the other person lose. So negative investment is not a sissy strategy. It is an active one.

“The average doesn't matter when you're fragile.”

Watch the video:

Related: Intervention Bias

Still curious? Nassim Taleb is the author of The Black SwanFooled By Randomness, and most recently, The Bed of Procrustes.