Quotes About Strategy

as to what to do in the event of losses.

Now, if you run away, all you need to be is just faster than me, not faster than the animal.

the more interesting their conversation, the more cultured they are, the more they will be trapped into thinking that they are effective at what they are doing in real business (something psychologists call the halo effect, the mistake of thinking that skills in, say, skiing translate unfailingly into skills in managing a pottery workshop or a bank department, or that a good chess player would be a good strategist in real life)

One may be risk loving yet completely averse to ruin. The central asymmetry of life is: In a strategy that entails ruin, benefits never offset risks of ruin. Further: Ruin and other changes in condition are different animals. Every single risk you take adds up to reduce your life expectancy. Finally: Rationality is avoidance of systemic ruin.

That was my best investment—risk turned out to be the topic I know the best.

By betting against fragility, they were antifragile.

90 percent of all options expire as losses.

In the end this is a trivial decision making rule: I am very aggressive when I can gain exposure to positive Black Swans -- when a failure would be of small moment -- and very conservative when I am under threat from a negative Black Swan. I am very aggressive when an error in a model can benefit me, and paranoid when an error can hurt.

that meant that 90 percent of all short option positions make money. If I want to use options to be bearish, I sell calls.

George Soros, a complex man who thrived on rare events

In other words, I aim at profiting from the rare event, with my asymmetric bets.

This point has applications in evolutionary biology, evolutionary game theory, and conflict situations. A mild degree of unpredictability in your behavior can help you to protect yourself in situations of conflict.

that they wouldn't advertise it so loudly if it weren't good for their bottom line.

the most successful businesses are precisely those that know how to work around inherent unpredictability and even exploit it.

Nunca pergunte, a quem quer que seja, qual é sua opinião, previsão ou recomendação. Simplesmente pergunte o que a pessoa tem — ou não — em seu portfólio de investimentos.

Traders, when they make profits, have short communications; when they lose they drown you in details, theories, and charts.

volatility benefits managers since they only get one side of the payoffs.

We could plan while bearing in mind such limitations.

or mistaking a profitable bet for good forecasting—not convexity of payoff and optionality).

We could plan while bearing in mind such limitations. It just takes guts.

I love taking small losses,"he says. "I just need my winners to be large.

Why anything with optionality has a long-term advantage

the easier it was to make money.

The more uncertainty, the more role for optionality to kick in, and the more you will outperform.