We interview and study famous financial billionaires, including Warren Buffett, Ray Dalio, and Howard Marks, and teach you what we learn and how you can apply their investment strategies in the stock market. We Study Billionaires is the largest stock investing podcast show in the world with 150,000,000+ downloads and is hosted by Stig Brodersen, Preston Pysh, William Green, Clay Finck, and Kyle Grieve. This podcast also includes the Richer Wiser Happier series hosted by best-selling author William Green. William regularly interviews legendary investors such as Mohnish Pabrai and Guy Spier, exploring what they can teach us about how to succeed in markets and life. And finally, our Bitcoin Fundamentals series is hosted by Preston Pysh, where he interviews prominent figures in the Bitcoin and macroeconomic space. To learn more about TIP, you can visit theinvestorspodcast.com or subscribe to our free daily newsletter here. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
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episode 843: TIP609: Fooled by Randomness by Nassim Taleb
On today’s episode, Clay reviews Nassim Taleb’s book – Fooled by Randomness.
Nassim Taleb is a Lebanon-born American mathematician and statistician whose work concerns problems of randomness, probability, and uncertainty. He’s very well known for his popular books, including The Black Swan, Antifragile, Skin in the Game, and Fooled by Randomness.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
01:37 - The role of luck in investing.
04:51 - Biases that get investors into trouble, such as the survivorship bias and the endowment effect.
10:09 - Why we should develop a sense of skepticism and humility.
15:52 - Why it’s so important to understand alternative histories.
30:47 - Why humans are more prone to make investment decisions based on emotions rather than facts and probabilities.
37:31 - What the firehouse effect is.
39:33 - The story of a trader who got married to his positions which ended up being a value trap.
48:08 - What chaos theory is.
58:54 - How Taleb’s investment strategy capitalizes on asymmetric opportunities.
62:06 - Distinguishing a good process from a good outcome.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Nassim Taleb’s books: Fooled by Randomness, Antifragile, The Black Swan, & Skin in the Game.
- Episode Mentioned: TIP558: How Ackman & Taleb Profited Billions During Market Crashes w/ Scott Patterson | YouTube Video.
- Episode Mentioned: TIP597: Darwin's Investing Lessons w/ Kyle Grieve | YouTube Video.
- Episode Mentioned: TIP579: Big Mistakes by Michael Batnick | YouTube Video.
- Follow Clay on Twitter.
- Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
- Check out all the books mentioned and discussed in our podcast episodes here.
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- Check out our We Study Billionaires Starter Packs.
- Browse through all our episodes (complete with transcripts) here.
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