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How to Avoid Being Blindsided by Black Swans
There's a black swan every other year now it feels like. Naseem Taleb talks quite a bit about black swans and black swans. He was on record as predicting the failure of some of the big mortgage lenders like Fannie Mae.
On today’s episode, Clay chats with Scott Patterson about his new book - The Chaos Kings.
The Chaos Kings tells the story of the hedge fund that achieved average annual returns of over 105% from 2008 through 2019, and how Bill Ackman had a $27 million dollar bet that turned into over $2.6 billion.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
02:35 - Who the Chaos Kings are.
05:38 - The story of Nassim Taleb and Mark Spitznagel setting up a hedge fund that delivered average returns of 105% annually.
06:12 - How these hedge funds profit tremendously during times of calamity.
16:14 - What led Nassim Taleb to get interested in the markets.
24:55 - Why we should be mindful of just how uncertain the world and our global economy is today.
complexity theory - What complexity theory is.
28:51 - How investors can protect themselves from a black swan event.
45:02 - How Taleb and Spitznagel viewed the world differently than conventional wisdom.
53:12 -How predictable Black Swan events are.
57:41 - Looming Black Swans that Taleb sees in today’s world.
60:49 - What the precautionary principle is.
63:23 - Taleb and Spitznagels take on the systemic risks in the financial system today.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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