19@@@@@@@@IL RISCHIO CONSUETO VA AUMENTATO CON IL RISCHIO ESISISTENZIALE
Yellow highlight | Location: 3,765
one hundred people go to a casino
Note:ESP MENTALE
Yellow highlight | Location: 3,768
assume that gambler number 28 goes bust. Will gambler number 29 be affected? No.
Note:GRUPPO E INDIVIDUO
Yellow highlight | Location: 3,769
1 percent of the gamblers will go bust.
Note:IPOTESI
Yellow highlight | Location: 3,771
One person, your cousin Theodorus Ibn Warqa, goes to the casino a hundred days
Note:ALTRO CASO
Yellow highlight | Location: 3,771
On day 28 cousin Theodorus Ibn Warqa is bust. Will there be day 29? No.
Note:MORTE
Yellow highlight | Location: 3,772
there is no game no more.
Yellow highlight | Location: 3,773
100 percent probability of eventually going bust.
Note:ROVINA CERTA
Yellow highlight | Location: 3,775
ensemble probability,
Yellow highlight | Location: 3,775
time probability
Yellow highlight | Location: 3,777
recommendations based on the long-term returns of the market, beware.
Note:INGANNO
Yellow highlight | Location: 3,783
“in order to succeed, you must first survive.”
Note:PRIMUM VIVERE
Yellow highlight | Location: 3,784
presence of ruin disqualifies cost-benefit analyses;
Note:CONTRO COSTI BENEFICI
Yellow highlight | Location: 3,789
the severe mistake of missing the effect of the difference between ensemble and time.
Yellow highlight | Location: 3,793
Mark Spitznagel and myself built our entire business careers around it.
Note:UN ERRORE CON CUI ARRICCHIRSI
Yellow highlight | Location: 3,796
help investors eliminate uncle points
Note:L OBBIETTIVO
Yellow highlight | Location: 3,798
worrying about the tails is “irrational.”
Note:L ASSURDO AVVISO DEGLI ECONOMISTI...PARLANO DEL GRUPPO NN DELL INDIVIDUO. SOLO I HA PROB. DI SOPRAVVIVENZA
Yellow highlight | Location: 3,799
how come nobody for 250 years quite got it? Lack of skin in the game, obviously.
Note:PERCHÈ NN SI COMPRENDE UN IDEA TANTO SEMPLICE?
Yellow highlight | Location: 3,809
ERGODICITY
Note:Ttttttttttttt
Yellow highlight | Location: 3,810
non-ergodic when observed past probabilities do not apply to future processes.
Note:ERGODICITÀ
Yellow highlight | Location: 3,813
if there is a possibility of ruin, cost-benefit analyses are no longer possible.
Note:IL PROB. CENTRALE
Yellow highlight | Location: 3,814
Assume a collection of people play Russian roulette
Note | Location: 3,814
ALTRO ES
Yellow highlight | Location: 3,815
About five out of six will make money.
Yellow highlight | Location: 3,816
one has an 83.33 percent chance of gains,
Note:METODO TRAD
Yellow highlight | Location: 3,816
But if you keep playing Russian roulette,
Note:CIMITERO CERTO
Yellow highlight | Location: 3,818
REPETITION OF EXPOSURES
Note:Tttttttttttttt
Yellow highlight | Location: 3,820
there is “statistical evidence that a plane is safe,” with a 98
Note:ESEMPIO
Yellow highlight | Location: 3,822
benefit analyses
Note:DUE TIPI DI ANALISI...LA PRIMA
Yellow highlight | Location: 3,823
tail risk analyses
Note:TIENE CONTO DELL'ASIMMETRIA: DA UNA PARTE C'è L'ESISTENZA, DALL'ALTRA NON SI GUADAGNA UNA VITA
Yellow highlight | Location: 3,824
innate tendency to “overestimate” small probabilities.
Note:L ACCUSA A TALEB
Yellow highlight | Location: 3,827
our ingrained daily life logic, which is remarkably more rigorous.
Note:MOLTO PIÙ RAGIONEVOLE L UOMO COMUNE
Yellow highlight | Location: 3,827
Smoking a single cigarette is extremely benign, so a cost-benefit analysis would deem it irrational to give up so much pleasure for so little risk!
Note:PERCHÈ NN FUMARE UNA SIGARETTA?…ANALISI COSTI BENEFICI
Yellow highlight | Location: 3,832
This idea of repetition makes paranoia about some low-probability
Note:È LA RIPETIZIONE NN LA QUANTITÀ
Yellow highlight | Location: 3,836
Confusion arises because it may seem that if the “one-off” risk is reasonable, then an additional one is also reasonable.
Note:LA RAGIONEVOLEZZA NN SI SOMMA...CONFUSIONE
Yellow highlight | Location: 3,840
The idea in social science of “loss aversion” has not been thought through properly—it
Note:LOSS AVERSION...ERRORE
Yellow highlight | Location: 3,842
you cannot possibly ignore all the other financial risks he is taking:
Note:LO PSICOLOGO PRENDE IL RISCHIO DI LABORATORIO COME SE FOSSE L UNICO
Yellow highlight | Location: 3,843
if he has a car parked outside that can be scratched,
Note:Ccccccccc
Yellow highlight | Location: 3,845
All these risks add up, and the attitude of the subject reflects them all.
Note:SOMMA TUTTI I RISCHI X SAPERE SE...
Yellow highlight | Location: 3,847
The Thorp, Kelly, and Shannon school
Note:INFO TH
Yellow highlight | Location: 3,848
agents increase their risks as they are winning, but contract after losses,
Note:STRATEGIA
Yellow highlight | Location: 3,848
“playing with the house money.”
Note:NOME
Yellow highlight | Location: 3,851
this dynamic strategy is deemed out of line by behavioral finance
Note:STRATEGIA CRITICATA DAI FINTI GURU
Yellow highlight | Location: 3,851
the creepy interventionist Richard Thaler,
Note:TIPO...
Yellow highlight | Location: 3,855
I believe that risk aversion does not exist: what we observe is, simply, a residual of ergodicity.
Note:TESI....PEE CHI HA LE MANI IN PASTA LE CODE ASIMMETRICHE CONTANO
Yellow highlight | Location: 3,855
People are, simply, trying to avoid financial suicide
Yellow highlight | Location: 3,857
WHO IS “YOU”?
Note:Tttttttttttttttt
Yellow highlight | Location: 3,858
One of the defects modern education and thinking introduces is the illusion that each one of us is a single unit.
Note:NN SIAMO SOLI
Yellow highlight | Location: 3,861
your death plus that of your children, nephews,
Note:LA COSA PEGGIORE CHE PUÒ CAPITARMINON È LA MIA MORTE
Yellow highlight | Location: 3,864
how can your death be the worst possible outcome?*3 Unless you are perfectly narcissistic
Note:Ccccccc
Yellow highlight | Location: 3,870
The precautionary principle,
Note:Tttttttttttttttttt
Yellow highlight | Location: 3,876
“we take risks by crossing the street,” so why worry so much
Note:LA SOLITA OBIEZIONE
Yellow highlight | Location: 3,877
the risk of being killed as a pedestrian is less than one in 47,000 years,
Note:NUMERI
Yellow highlight | Location: 3,878
my death is never the worst-case scenario
Note:MA
Yellow highlight | Location: 3,886
COURAGE AND PRECAUTION AREN’T OPPOSITES
Note:Ttttttttttttt
Yellow highlight | Location: 3,887
How can both courage and prudence be classical virtues?
Note:NOTATA LA STRANEZZA?
Yellow highlight | Location: 3,890
I can exercise courage to save a collection of kids from drowning,
Note:CORAGGIO X IL SINGOLO...PRUDENZA COLLETTIVA
Yellow highlight | Location: 3,894
Courage is when you sacrifice your own
Yellow highlight | Location: 3,895
Selfish courage is not courage.
Yellow highlight | Location: 3,898
RATIONALITY, AGAIN
Note:Ttttttttttttt
Yellow highlight | Location: 3,898
reframed rationality in terms of actual decisions,
Note:IL REALE È RAZIONALE
Yellow highlight | Location: 3,901
If superstition is what’s needed to satisfy ergodicity, let it be.
Note:ES SUPERSTIZIONE
Yellow highlight | Location: 3,902
Warren Buffett.
Note:NN È DIVENTATO RICCO CON L ANALISI CB
Yellow highlight | Location: 3,903
establishing a high filter, then picking opportunities that pass such a threshold.
Note:FISSARE UN CUSCINETTO DI SICUREZZA
Yellow highlight | Location: 3,904
really successful people say no to almost everything,”
Note:PAROLE DI WB
Yellow highlight | Location: 3,905
“say no” to tail risk.
Yellow highlight | Location: 3,906
Whenever I hear someone saying “we need to take (tail) risks” I know it is not coming from a surviving practitioner but from a finance academic
Note:TIPICHE PAROLE DELL ACCADEMICO
Yellow highlight | Location: 3,910
LOVE SOME RISKS
Note:Tttttttttttttttt
Yellow highlight | Location: 3,912
I make the case for risk loving,
Note:ES
Yellow highlight | Location: 3,913
risks that don’t have tail risks but offer tail profits.
Note:MA
Yellow highlight | Location: 3,916
Risk and ruin are different tings.
Note:BAH
Yellow highlight | Location: 3,916
NAIVE EMPIRICISM
Note:Ttttt
Yellow highlight | Location: 3,917
“Ebola is causing fewer deaths than people drowning in their bathtubs,”
Note | Location: 3,918
CONFUSIONE DI DUE EVENTI DIFFERENTI
Yellow highlight | Location: 3,920
Never compare a multiplicative, systemic, and fat-tailed risk to a non-multiplicative, idiosyncratic, and thin-tailed one.
Note:REGOLA
Yellow highlight | Location: 3,922
correlation between the death of one person and that of another.
Note:IL CUORE...CORRELAZIONE...FRAGILITÀ
Yellow highlight | Location: 3,924
Mediocristan and Extremistan.
Note:DUE CATEGORIE DI RISCHIO
Yellow highlight | Location: 3,924
Mediocristan is thin-tailed
Yellow highlight | Location: 3,925
Extremistan has a systemic effect that Mediocristan doesn’t.
Yellow highlight | Location: 3,928
Chernoff bound
Note:LA SICUREZZA DI MEDIOCRISTAN
Yellow highlight | Location: 3,929
number of people who drown in their bathtubs
Note:ES MEDIO
Yellow highlight | Location: 3,930
the doubling of the number of people killed by terrorism
Note:COSA BEN DIVERSA
Yellow highlight | Location: 3,934
Your grandmother’s logic would debunk these claims.
Yellow highlight | Location: 3,941
looks at things from the tail.
Note:ADVICE
Yellow highlight | Location: 3,943
difference between processes for extremes,