Friday 19th April 2019

    There's no actual skill called "business": Naval


    Nassim Taleb made his fortune, his wealth by being a trader who basically relied upon black swans. Nassim Taleb made money by losing little bits of money every day and then once in a blue moon he would make a lot of money when the unthinkable happened for other people.

    Whereas most people want to make little bits of money every day and in exchange they'll tolerate lots of blow-up risk, they'll tolerate going completely bankrupt.

    We're not evolved to bleed a little bit every day. If you're out in the natural environment, and you get a cut and you're literally bleeding a little bit every day, you will eventually die. You'll have to stop that cut.

    We're evolved for small victories all the time but that becomes very expensive. That's where the crowd is. That's where the herd is. So, if you're willing to bleed a little bit every day but in exchange you'll win big later, you will do better.

    That is, by the way, entrepreneurship. Entrepreneurs bleed every day.

    Continued here