Quotes About Risk

as they are hedging the possibility of their falling into the same situation some day.

the decision maker focuses on the payoff, the consequence of the actions (hence includes asymmetries and nonlinear effects).

encouraging traders to make steady money at the expense of hidden risks of Black Swans, consequential losses.

It is true that 1,000 days cannot prove you right, but one day can prove you to be wrong.

The convex (left) is antifragile, the concave (right) is fragile (has

the negative effect for an average loss to be up to 2.5 the magnitude of a positive one); it will lead to an emotional deficit.

My declared approach was to try to make money infrequently.

Sadly, it may be even worse for you to make $10 million, then lose back nine, than to making nothing at all! True, you may end up with a million (as compared to nothing), but it may be better had you got zilch. (This assumes, of course, that you care about financial rewards.)

Every single risk you take adds up to reduce your life expectancy.

extreme event as a starting point and not treat it as an exception to be pushed under the rug.

I have no problem with risk taking, just please, please, do not call yourself conservative and act superior to other businesses who are not as vulnerable to Black Swans.

The world is split between those who don't know how to start making money and those who don't know when to stop.

Nature is all about the exploitation of optionality; it illustrates how optionality is a substitute for intelligence.

shows why the convex likes volatility. If you earn more than you lose from fluctuations, you want a lot of fluctuations.

The last thing a trader needs to do is be scientific or play econometrician during buisness hours.

Cancer from smoking seems more likely than cancer without a cause attached to it

Option = asymmetry + rationality

Note that in traditional societies even those who fail—but have taken risks—have a higher status than those who are not exposed.

in fact, they are so blind to the odds that they treat odds of one in a thousand and one in a million almost in the same way.

Everything nonstable or breakable has had ample chance to break over time.

blinding people to the odds of success when engaging in ventures.

we don't recognize it in other places, where these options tend to remain underpriced or not priced at all.

my ideas on redundancy in systems.

Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty. Yet, in spite of the ubiquity of the phenomenon, there is no word for the exact opposite of fragile. Let us call it antifragile. Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better.