The gist of Taleb’s book can be explained, at the risk of oversimplification, by using a few examples rooted in basic probability of the kind that relies on a simple coin toss experiment. Suppose one tosses a fair coin 5 times, with a reward associated with getting 5 consecutive heads. The probability associated with this [...]
Filed under: books, finance | Tagged: cognitive bias, fooled by randomness, nassim taleb, probability | 1 Comment »
