The idea of antifragile investing was endorsed by author nassim taleb in his 2014 book, antifragile. If the idea is nice and neat, however, the book that houses it is just the opposite. Antifragile investing is for when the markets go down. His 2007 book the black swan has been described by the sunday times as one of the twelve most. A postulated antithesis to fragility where highimpact events or shocks can be beneficial.
Antifragile is a kind of sequel or logical followon to mr. Fragile things fine china, portfolios only invested in a single position, a why me. Things that gain from disorder kindle edition by taleb, nassim nicholas. Antifragile resembles a selfhelp book, though it is difficult to imagine any other selfhelp book as intemperate and cranky. Creating an antifragile etf portfolio financial advisor magazine. For all of us, quotes are a great way to remember a book and to carry with us the authors best ideas. The complex system of financial markets and our portfolios is the area where we stand to benefit most from a little more antifragility.
Taleb, the barbell portfolio and safetyfirst financial. Fragile, robust, antifragile this is talebs central concept in both antifragile and the black swan. An excellent book that has influenced my thinking more than almost any other, and continues to be a reference i go back to. In the black swan taleb outlined a problem, and in antifragile he offers a definitive solution. Talebs point is that the future is unpredictable, and since black swans are inevitable, any system, company, country, or organism human or non that is to last, must be antifragile. Nassim talebs incerto contains the blueprint for an improved way of portfolio construction.
Nassim talebs barbell portfolio investment strategy posted on september 21, 2017 by admin1 the barbell investing strategy, advocated by nassim taleb, can take many forms and may be structured in such a way that some of the holdings take significant well above average advantage of market movements, while another part of portfolio is very. Just to define terms, i think you are talking about what taleb mentions in his earlier books. Fragility something fragile breaks when stressed or something unexpected happens. Taleb talks about fragile and antifragile jobs in this context. Taleb examined how small doses of volatility can help systems handle larger disruptors in the future.
Taleb does not discuss it in his book, but i, as investment manager, think that this concept will be a very useful tool in investment. You shouldnt worry about blackswan events, says nassim taleb. In nassim taleb book antifragile he emphasizes that if you see a fraud and do not say fraud, you are a fraud, i am thus compelled to note that antifragile is a fraud because its theme is based on intentional misdirection. Strengthen your portfolio with this antifragile stock. Things that gain from disorder by nassim nicholas taleb notes the wind energizes the fire and extinguishes the candle. This book builds on the black swan taleb puts forward evidence and definitions for fragility, robustness and antifragility, and explains where they apply in life, and why you want to strive for antifragility. Nassim taleb tackled this very question in his latest book, antifragile.
Antifragile should be a mandatory read for all policy makers and investment bankers. Heres the definition of antifragility from nassim taleb. In 2016, i started researching how to apply this antifragile mindset to investing. Other works by taleb include fooled by randomness and antifragile, which are worthwhile reads for any investor. Nassim talebs barbell portfolio investment strategy. I was reading nassim talebs book fooled by randomness on an old blue couch id. Use features like bookmarks, note taking and highlighting while reading antifragile. The impact of the highly improbable, stopped by the motley fool to discuss his newest book, antifragile. Nassim taleb on bitcoin, stocks, portfolio and the crash.
All systems can be categorized as one of these three. Having found great success as a trader, taleb profited several times throughout his life on market downturns when most investors were taking losses. We thoughtfully gather quotes from our favorite books, both classic and current. Nassim nicholas taleb on how to be more antifragile the motley. Antifragility is a concept developed by professor, former trader and former hedge fund. The worst thing you can do with insurance is try to time it, taleb, a distinguished professor of risk engineering at new york university, said in an interview monday on bloomberg television. How to create an antifragile life, and a stock portfolio. But, something that is antifragile benefits from stress, randomness, disorder or uncertainty. In his new book antifragile, nassim nicholas taleb defines a whole classification of objects that exceed robust. Investing philosophy best known and popularized by nassim taleb. The other books in the series are fooled by randomness, the black swan, skin in the game, and the bed of procrustes. Nassim taleb is a trader himself and many of the lessons from this book he learned by trading in highly volatile currency markets. I enjoy his writing and, among all his books, think antifragile is the most.
Is nassim talebs barbell allocation strategy easily. The complex system of financial markets and our portfolios is the area where we stand to. Again, in taleb lingo, randomness provides us with the opportunity to become antifragile things that get better when exposed to shocks, volatility, randomness, disorders, stressors, risk, and uncertainty. The antifragile asset allocation model represents the union between the sector rotation model and the black swan hedging model. Many of the ideas are applicable to economic theory, but not necessarily portfolio theory. The hunt for antifragile investments canadian investment. The book by nassim taleb is a good reference for value investors.
Nassim taleb, in his exasperating but compelling book antifragile, praises things that gain from disorder people, policies and institutions designed to thrive on volatility, instead of shattering in the encounter with it oliver burkman, guardian more than just robust or flexible, it actively thrives on disruption julian baggini, guardian. Recent research illustrates the critical connection between the barbell, coresatellite portfolios and safetyfirst financial planning and how advisors can improve on using. The opposite of fragility is not robustness, because robustness only indicates the ability to withstand uncertainty. Nassim nicholas taleb on how to be more antifragile. Building an antifragile investment portfolio slideshare.
Portfolio thoughts from antifragile flirting with models. The answer to the latter question is not something you will find in his books or elsewhere. Many books on the subject such as nassim taleb s are great at the philosophy but light on details. Antifragile, by nassim nicholas taleb the new york times. An antifragile portfolio is the opposite of a portfolio which br. Nassim taleb on bitcoin, stocks, portfolio and the crash enroll with crypto university courses now. From the bestselling author of the black swan and one of the foremost thinkers of our time, nassim nicholas taleb, a book on how some things actually benefit from disorder. Download it once and read it on your kindle device, pc, phones or tablets. The key for portfolio managers is to find antifragile investments, and avoid.
Book summary of talebs antifragile movement capital. A relatively quick reference point for the key concepts that he elaborates in the book. From the bestselling author of the black swan and one of the foremost philosophers of our time, nassim nicholas taleb, a book on how some systems. Talebs bestselling 2007 book the black swan and his earlier book fooled by randomness. Cio mark spitznagel on the paradox of higher returns with lower risk. In his books, taleb is an advocate of the barbell investing approach. Nassim talebs incerto contains the blueprint for an improved way of portfolio. Antifragile is a standalone book in nassim nicholas talebs landmark incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decisionmaking in a world we dont understand. By building antifragile investment portfolios taleb, nassim nicholas.
This portfolio thus satisfies the requirements of an antifragile portfolio by placing tight constraints on losses and simultaneously leaving you free to take big. Things that gain from disorder, which built off his previous works and applies the lessons learned to todays biggest challenges. The sector rotation model selects the best 5 sector etfs. Since his fame after the 2010 publication of the book the black swan, nassim nicholas taleb has often been associated with the strategy. Taleb observed degrees of antifragility in everything. An authors job is antifragile you cannot fire an author from it, and a desire to reduce the sales of his books will more. Sovietharvard delusions in the book which do precisely this. Antifragile is a standalone book in nassim nicholas talebs landmark incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and. For each of the 5 etfs, if it has a positive absolute momentum m, then it. The most conspicuous and popular examples he presents are also explicitly mentioned as not the essence of antifragility. In antifragile taleb provides the famous example of the scholarly.
893 786 458 596 935 755 1041 655 345 339 1167 699 1112 1513 1352 1545 413 969 420 592 352 749 244 293 1441 1194 931 637 1012 1356 1067 811 414 805 874 871 858 794 215 1329