How to be Antifragile?
Jos Nieland, Teacher, Netherlands, SIG Leader
Taleb says the shortest summary of the Bible is: donít do to others what you donít want others do to you.
A friend of Taleb believes the summary of his incerto (combination of his main works: 'The Black Swan", 'Fooled by Randomness' and his recent book 'Antifragile') can considered to be:
Fragility is what looses from volatility. If the black swan appears, your system or the payoffs of your decisions will be extremely negative.
How to prepare? Taleb's solution is to become antifragile. This means the system or your decision must meet the following preconditions:
- Skin in the game; make people responsible, no bonus without malus, eat your own cooking
- Via negativa; less is more; small is beautiful; prepare for the worst the best can take of its self; subtraction no addition;
- No leverage, no debt, no complex derivates;
- Not top down: bottom up!
Becoming antifragile is an alternative for calculat...