<ul><li>As much as we want to “keep it simple, stupid” … It is precisely the simplification of issues that are actually very complex, which can be dangerous.</li><li>Mild success can be explainable by skills and labour. Wild success is attributable to variance.</li><li>Every man believes that he is quite different.</li></ul>

Stand Out Quotes

Nassim Nicholas Taleb is a Lebanese-American Essayist, scholar, statistician, former trader and risk analyst, whose work Focuses on Problems of randomness, probability and uncertainty. Fooled by Randomness deals with the fallibility of human knowledge, This book is one of the 75 smartest books of all time for its work on the way humans perceive randomness. The author has come up with various ways through which humans assign meaning to a series of independent random events.

About The Author

Random irrational thinking can be harmful or harmless, and we must understand that harmless randomness and irrational behavior thinking will help us to make our lives better but irrational behavior attitude or randomness which is harmful will only destroy our lives. We must develop a stoic attitude and understand the difference between good and bad randomness.

The Stoic Attitude

Randomness, chance, and luck influence our lives and our work more than we realize. Because of hindsight bias and survivorship bias, in particular, we tend to forget the many who fail, remember the few who succeed, and then create reasons and patterns for their success even though it was largely random. Mild success can be explainable by skills and hard work, but wild success is usually attributable to variance and luck.

Fooled by Randomness: The Premise

We need irrationality to make certain decisions.If we make every single of our decisions based on rational reasoning then we may not be able to survive or we will cease to exist. Not every decision or choice can be easy, some choices can be indifferent like there can be some choices whose outcome will neither make us feel better and will not be able to make us feel worse. If you want to invest money, by thinking rational like the market can go down or can go up, by thinking this way you won’t be able to make a proper decision, unless you are being slightly irrational.

We need Irrationality

Randomness means there are some strategies that work well for any given cycle, but these cycles are often short to medium term successes. The strategies that work for a given cycle in the short term may not be the best for the long run. They are suboptimal strategies winning over a randomly beneficial short term cycle.The same can be said for setting big goals, following a fad diet, chasing an extreme training protocol, and so on. Unsustainable and suboptimal for the long term. Evolutionary traits that are undesirable can survive for a period of time in any given population.

The Real Meaning Of Randomness

It’s better to value old, distilled thoughts than “new thinking” because for an idea to last so long it must be good. That is, old ideas have had to stand the test of time. New ideas have not. Some new ideas will end up lasting, but most will not.

New Vs Old Ideas

The ratio of undistilled information to distilled is rising. Let’s call information that has never had to prove its truth more than once or twice, undistilled. And information that has been filtered through many years, counter arguments, and situations is distilled. You want more distilled information (concepts that stand the test of time and rigorous analysis) and less undistilled information (the news, reactionary opinions, and “cutting edge” research).

The Need For Curating Information

Randomness is not all bad it’s harmless too, we people need to use randomness in a better way so that it can improve our lives in better way, there are some fields which can’t work without randomness such as art, poetry, humor, books etc., author says that without randomness there will be no beauty in art there will be no joy, happiness in these things, author says that in some situations randomness is good, author says that we can’t let randomness fool us, but the right kind of randomness is good.

Enjoy the Harmless Bad Randomness

Many systems we move and live works in linear fashion mean in sequential form, usually in one line, with every day of your work you move closer to your promotion, when you go to school you move closer to graduation, with every savings you do, you move closer to your retirement same lifestyle, and so on.Because of all these events we think that life is linear, or sequential, but that’s not the actual fact.

Life isn’t fair, Which Is Great

The World isn't what it seems. This book provides a glimpse of the hidden green code of the Matrix.

Contends that randomness and probability have a large impact on life, claims that people regularly fail to recognize that role, and tells how to differentiate between randomness in general and the financial markets in particular.

philosophy

Philosophy

business

Business

books

Books

Fooled by Randomness is a standalone book in Nassim Nicholas Taleb’s landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don’t understand. The other books in the series are The Black Swan, Antifragile, Skin in the Game, and The Bed of Procrustes. Fooled by Randomness is the word-of-mouth sensation that will change the way you think about business and the world. Nassim Nicholas Taleb–veteran trader, renowned risk expert, polymathic scholar, erudite raconteur, and New York Times bestselling author of The Black Swan–has written a modern classic that turns on its head what we believe about luck and skill. This book is about luck–or more precisely, about how we perceive and deal with luck in life and business. Set against the backdrop of the most conspicuous forum in which luck is mistaken for skill–the world of trading–Fooled by Randomness provides captivating insight into one of the least understood factors in all our lives. Writing in an entertaining narrative style, the author tackles major intellectual issues related to the underestimation of the influence of happenstance on our lives. The book is populated with an array of characters, some of whom have grasped, in their own way, the significance of chance: the baseball legend Yogi Berra; the philosopher of knowledge Karl Popper; the ancient world’s wisest man, Solon; the modern financier George Soros; and the Greek voyager Odysseus. We also meet the fictional Nero, who seems to understand the role of randomness in his professional life but falls victim to his own superstitious foolishness. However, the most recognizable character of all remains unnamed–the lucky fool who happens to be in the right place at the right time–he embodies the “survival of the least fit.” Such individuals attract devoted followers who believe in their guru’s insights and methods. But no one can replicate what is obtained by chance. Are we capable of distinguishing the fortunate charlatan from the genuine visionary? Must we always try to uncover nonexistent messages in random events? It may be impossible to guard ourselves against the vagaries of the goddess Fortuna, but after reading Fooled by Randomness we can be a little better prepared. Named by Fortune One of the Smartest Books of All Time A Financial Times Best Business Book of the Year

Nassim Nicholas Taleb is an accomplished writer whose work has resonated with readers around the world. Nassim Nicholas Taleb has published several books that explore a range of topics, from fiction to nonfiction, and has received critical acclaim for the ability to weave compelling narratives. Nassim Nicholas Taleb's writing style is known for its depth and authenticity, and has earned quite a loyal following of readers.

The Stoic Attitude

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