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Black Swans, Stock Market Crashes and the Chaos Kings

The Compound and Friends

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The Importance of Dark Pools and Quants in Writing Chaos Kings

The big takeaway is it's easy to overestimate your risk tolerance, especially in a bull market. All of the mistakes are made when the fat tails happen and they happen way more than they should mathematically. Not overestimating your ability to stomach a 25% drawdown in five days is probably the right posture for most investors.

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