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Fooled By Randomness: The Hidden Role of…
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Fooled By Randomness: The Hidden Role of Chance in Life and in the Markets (original 2001; edition 2007)

by Nassim Taleb

Series: Incerto (1)

MembersReviewsPopularityAverage ratingMentions
4,201602,811 (3.89)32
This audiobook is about luck, or more precisely, how we perceive and deal with luck in life and business. It is already a landmark work and its title has entered our vocabulary. In its second edition, Fooled by Randomness is now a cornerstone for anyone interested in random outcomes. Set against the backdrop of the most conspicuous forum in which luck is mistaken for skill, the world of trading, this audiobook is a captivating insight into one of the least understood factors of all our lives. In an entertaining narrative style, the author succeeds in tackling three major intellectual issues: the problem of induction, the survivorship biases, and our genetic unfitness to the modern word. Taleb uses stories and anecdotes to illustrate our overestimation of causality and the heuristics that make us view the world as far more explainable than it actually is. The audiobook is populated with an array of characters, some of whom have grasped, in their own way, the significance of chance: Yogi Berra, the baseball legend; Karl Popper, the philosopher of knowledge; Solon, the ancient world's wisest man; the modern financier George Soros; and the Greek voyager Ulysses. We also meet the fictional Nero, who seems to understand the role of randomness in his professional life, but who also falls victim to his own superstitious foolishness. But the most recognizable character remains unnamed, the lucky fool in the right place at the right time - the embodiment of 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 through chance. It may be impossible to guard against the vagaries of the Goddess Fortuna, but after listening to Fooled by Randomness we can be a little better prepared.… (more)
Member:atul58
Title:Fooled By Randomness: The Hidden Role of Chance in Life and in the Markets
Authors:Nassim Taleb
Info:Penguin (2007), Paperback, 368 pages
Collections:Your library
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Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb (2001)

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» See also 32 mentions

English (56)  Dutch (2)  Italian (2)  All languages (60)
Showing 1-5 of 56 (next | show all)
260 pages of sarcasm is more than I can stand, all to tell us that Wall Street can predict everything except the unpredictable. ( )
  MylesKesten | Jan 23, 2024 |
Castalia Library, Cowhide Leather 900 ( )
  TomLopez | Dec 9, 2023 |
Very enlightening! I am so stoked that I signed up for a course on Probability and statistics after reading this book ( )
  harishwriter | Oct 12, 2023 |
My god, what a bothersome windbag.He goes on and on telling useless stories and pretending to explain some (very very very basic) Statistics - only exposing his own very high self-regard. Totally unreadable, which is not strange for a book of >300 pages that could be easily reduced to 10 with gain for everybody (except the author, I guess). The only good side is the black cat on the cover. ( )
  kenshin79 | Jul 25, 2023 |
Not so enamoured with this popular book. Taleb finds himself incredibly intelligent for stating that hedging one’s bets is a good idea and that randomness exists. Much of the book is spent on autofellatio and disparaging complex philosophy. It starts being a worthwhile read at about page 206. The typeface is the book’s greatest achievement. ( )
  HundredFlowersBloom | Jan 27, 2023 |
Showing 1-5 of 56 (next | show all)
The lesson here for investors is powerful and frightening. How much can you rely on the track records of investment advisers, mutual fund managers, newspaper columnists, or even the market as a whole in making decisions about your investment portfolio? Not nearly as much as you probably think.

 

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Nassim Nicholas Talebprimary authorall editionscalculated
Sergio, ChristopherCover designersecondary authorsome editionsconfirmed
Welch, ChrisDesignersecondary authorsome editionsconfirmed
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This book is the synthesis of, on one hand, the no-nonsense practitioner of uncertainty who spent his professional life trying to resist being fooled by randomness and trick the emotions associated with probabilistic outcomes and, on the other, the aesthetically obsessed, literature-loving human being willing to be fooled by any form of nonsense that is polished, refined, original, and tasteful.
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This audiobook is about luck, or more precisely, how we perceive and deal with luck in life and business. It is already a landmark work and its title has entered our vocabulary. In its second edition, Fooled by Randomness is now a cornerstone for anyone interested in random outcomes. Set against the backdrop of the most conspicuous forum in which luck is mistaken for skill, the world of trading, this audiobook is a captivating insight into one of the least understood factors of all our lives. In an entertaining narrative style, the author succeeds in tackling three major intellectual issues: the problem of induction, the survivorship biases, and our genetic unfitness to the modern word. Taleb uses stories and anecdotes to illustrate our overestimation of causality and the heuristics that make us view the world as far more explainable than it actually is. The audiobook is populated with an array of characters, some of whom have grasped, in their own way, the significance of chance: Yogi Berra, the baseball legend; Karl Popper, the philosopher of knowledge; Solon, the ancient world's wisest man; the modern financier George Soros; and the Greek voyager Ulysses. We also meet the fictional Nero, who seems to understand the role of randomness in his professional life, but who also falls victim to his own superstitious foolishness. But the most recognizable character remains unnamed, the lucky fool in the right place at the right time - the embodiment of 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 through chance. It may be impossible to guard against the vagaries of the Goddess Fortuna, but after listening to Fooled by Randomness we can be a little better prepared.

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Table of Contents from Worldcat:

Preface -- Acknowledgments for the updated second edition -- Chapter summaries -- Prologue -- pt. I. Solon's warning : skewness, asymmetry, induction -- 1. If you're so rich, why aren't you so smart? -- Nero Tulip -- Hit by lightning -- Temporary sanity -- Modus operandi -- No work ethics -- There are always secrets -- John the high-yield trader -- An overpaid hick -- The red-hot summer -- Serotonin and randomness -- You dentist is rich, very rich -- 2. A bizarre accounting method -- Alternative history -- Russian roulette -- Possible worlds -- An even more vicious roulette -- Smooth peer relations -- Salvation via aeroflot -- Solon visits Regine's nightclub -- George Will is no Solon : on counterintuitive truths -- Humiliated in debates -- A different kind of earthquake -- Proverbs galore -- Risk managers -- Epiphenomena -- 3. A mathematical mediation on history -- Europlayboy mathematics -- The tools -- Monte Carlo mathematics -- Fun in my attic -- Making history -- Zorglubs crowding the attic -- Denigration of history -- The stove is hot -- Skills in predicting past history -- My Solon -- Distilled thinking on your PalmPilot -- Breaking news -- Shiller redux -- Gerontocracy -- Philostratus in Monte Carlo : on the difference between noise and information -- 4. Randomness, nonsense, and the scientific intellectual -- Randomness and the verb -- Reverse turing test -- The father of all pseudothinkers -- Monte Carlo poetry -- 5. Survival of the least fit, can evolution be fooled by randomness? -- Carlos the emerging-markets wizard -- The good years -- Averaging down -- Lines in the sand -- John the high-yield trader -- The quant who knew computers and equations -- The traits they shared -- A review of market fools of randomness constants -- Naive evolutionary theories -- Can evolution be fooled by randomness? -- 6. Skewness and asymmetry -- The median is not the message -- Bull and bear zoology -- An arrogant twenty-nine-year-old son -- Rare events -- Symmetry and science -- Almost everybody is above average -- The rare-event fallacy -- The mother of all deceptions -- Why don't statisticians detect rare events? -- A mischievous child replaces the black balls -- 7. The problem of induction -- From Bacon to Hume -- Cygnus Stratus -- Nordhoff's -- Sir Karl's promoting agent -- Location, location -- Popper's answer -- Open society -- Nobody is perfect -- Induction and memory -- Pascal's wager -- Thank you, Solon -- pt. II. Monkeys on typewriters : survivorship and other biases -- It depends on the number of monkeys -- Vicious real life -- This section -- 8. Too many millionaires next door -- How to stop the sting of failure -- Somewhat happy -- Too much work -- You're a failure -- Double survivorship biases -- More experts -- Visibility winners -- It's a bull market -- A guru's opinion -- 9. It is easier to buy and sell than fry an egg -- Fooled by numbers -- Placebo investors -- Nobody has to be competent -- Regression to the mean -- Ergodicity -- Life is coincidental -- The mysterious letter -- An interrupted tennis game -- Reverse survivors -- The birthday paradox -- It's a small world! -- Data mining, statistics, and charlatanism -- The best book I have ever read! -- The backtester -- A more unsettling extension -- The earnings season : fooled by the results -- Comparative luck -- Cancer cures -- Professor Pearson goes to Monte Carlo (literally) : randomness does not look random! -- The dog that did not bark : on biases in scientific knowledge -- I have no conclusion -- 10. Loser takes all, on the nonlinearities of life -- The sandpile effect -- Enter randomness -- Learning to type -- Mathematics inside and outside the real world -- The science of networks -- Our brain -- Buridan's donkey or the good side of randomness -- When it rains, it pours -- 11. Randomness and our mind : we are probability blind -- Paris or the Bahamas? -- Some architectural considerations -- Beware the philosopher bureaucrat -- Satisficing -- Flawed, not just imperfect -- Kahneman and Tversky -- Where is Napoleon when we need him? -- "I'm as good as my last trade" and other heuristics -- Degree in a fortune cookie -- Two systems of reasoning -- Why we don't marry the first date -- Our natural habitat -- Fast and frugal -- Neurobiologists too -- Kafka in a courtroom -- An absurd world -- Examples of biases in understanding probability -- We are option blind -- Probabilities and the media (more journalists) -- CNBC at lunchtime -- You should be dead by now -- The Bloomberg explanations -- Filtering methods -- We do not understand confidence levels -- An admission -- pt. III. Wax in my ears : living with randomitis -- I am not so intelligent -- Wittgenstein's ruler -- The Odyssean mute command -- 12. Gamblers' ticks and pigeons in a box -- Taxi-cab English and causality -- The Skinner pigeon experiment -- Philostratus redux -- 13. Carneades comes to Rome : on probability and skepticism -- Carneades comes to Rome -- Probability, the child of skepticism -- Monsieur de Norpois' opinions -- Path dependence of beliefs -- Computing instead of thinking -- From funeral to funeral -- 14. Bacchus abandons Antony -- Notes on Jackie O.'s funeral -- Randomness and personal elegance -- Epilogue. Solon told you so -- Beware the London traffic jams -- Postscript. Three afterthoughts in the shower -- First thought : the inverse skills problem -- Second though : on some additional benefits of randomness -- Uncertainty and happiness -- The scrambling of messages -- Third thought : standing on one leg -- Acknowledgments for the first edition -- A trip to the library : notes and reading recommendations -- Notes -- References -- Index.
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