I just started reading "Fooled By Randomness", by Nassim Nicholas Taleb, yesterday. I have a vague memory that I read the first edition of this book for a personal finance course that I took in 2002, but I don’t remember much about it. In any case, the second edition has been expanded, so now I’m getting some extras. I’ve only finished the preface, and so far it’s going well, as he attacks certain clichés about success and failure, as found in "The Millionaire Next Door":
That all millionaires were persistent, hardworking people does not make persistent hard workers become millionaires: Plenty of unsuccessful entrepreneurs were hardworking people….
It is completely obvious, but it’s still a joy to read.
He also takes a potshot at Buffet: I am not saying that Warren Buffet is not skilled; only that a large population of random investors will almost necessarily produce someone with his track records just by luck. I think it’s not fair to confuse Buffet’s success with that of any ordinary stockpicker, since Buffet has interfered with the management of the companies in his portfolio on more than one occasion. Still, the beneficiaries of random luck are so frequently and unjustly deified, it can make you ill. It’s nice to actually read an alternative view, for a change.
No comments:
Post a Comment