wildlifeprotection.info Laws The Black Swan Taleb Pdf


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was. The astonishing success of Google was a black swan; so was 9/ For Nassim Nicholas. Taleb, black swans underlie almost everything about our world . The Roots of Unfairness: the Black. Swan in Arts and Literature. Nassim Nicholas Taleb1. 2nd. Draft, November Literary Reseach/Recherche Litteraire. PDF | On Feb 1, , Gene Callahan and others published Nassim Nassim Nicholas Taleb'sThe Black Swan is a fascinating but deeply flawed book.

The Black Swan Taleb Pdf

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"Black swans" are highly consequential but unlikely events that are easily Like everyone else, says Taleb, these so-called “experts” fail to appreciate “black. The Black Swan: The Impact of the Highly Improbable is a philosophy literary book by the epistemologist Nassim Nicholas Taleb. The core theme of the book is . (italics denote quotes from Taleb, boldface denotes my own emphasis). The phrase “Black Swan” (arising earlier in the different context of.

Two Types of Improbability To better understand the impact of the unlikely, Nassim Taleb divides human knowledge into two main areas of randomness, separating the two major groups of unlikely effects in our lives.

The Black Swan PDF Summary

By dividing the improbable into two large groups, it becomes easier to understand how it deceives us and thus proves our inability to make predictions. The first of them is called by Taleb of Mediochristian, describing a land where averages are the rule.

In Mediochristian our sampling of information and data available is very large, and no single fact will change the way the model works. The data in this context is not scalable, as it has defined a minimum and a maximum limit.

Examples of Mediochristian information are, for example, physical characteristics such as height and body weight, and even IQ. Since the properties of such non-scalable information are certainly limited, it is possible to make relatively accurate predictions about the means.

The second territory is the Extremistan, and it is in it that the extremes live. In Extremistan, the information is so disproportionate that a single observation can dramatically impact our observations and mislead our ability to make predictions. Extremistan brings the nonphysical side, fundamentally abstract things.

Examples of data and information emerging from the Far East are far more diverse. Examples include: Deaths in terrorist attacks, book sales by an author, inflation rates. Other than data such as height and weight, wealth distribution and album sales are scalable items. For example, you can sell your book in digital format through Kindle infinitely, because the digital format does not require you to print a book with each copy sold.

Another example is wealth, which is highly scalable: it is possible for a small percentage of the population to own an incredibly large portion of wealth. And if you analyze the data looking at the average, you can be deceived with a representation of the income distribution that does not accurately reflect the reality of people. You are a turkey, which is fed daily, well taken care of every day, for years and your life is going ok.

But on Thanksgiving, a surprise occurs. You are not fed, you are murdered and eaten by the people who feed you. That is the metaphor that Taleb uses to illustrate how to observe the past to predict the future. It also proves that the Black Swans are relative. For you the turkey , the Thanksgiving dinner is definitely a Black Swan, but for the Thanksgiving dinner cook, there is no surprise in this event.

We often look at our lives as if things were happening in the Mediochristian, when, in fact, life occurs much more in the kingdom of Extremistan. To learn to deal with this, one must accept, embrace and understand the unpredictable nature of the world, rather than ignore it. That will not make you not be the turkey, but at least it will allow you not to get accustomed to the status quo.

Do not Trust Your Brain! Our brains play tricks on us. We tend to conclude that similar sounding phrases have absurdly different meanings. The lack of proof that something exists does not mean that it does not exist. It is not because there has never been an earthquake in your city, that it will never occur, will it? There is also the tendency of our brain to seek evidence, the so-called fallacy of confirmation.

Our brain is accustomed to searching for evidence that things exist or will occur. But given our ignorance, to seek evidence that what we believe is real can greatly limit our line of thought and make us ignore information that does not support our beliefs.

It is often more valuable to search for facts that go against our beliefs than those which support it. That leads to much more powerful discoveries and allows us not to be blinded. Your Brain Makes Up Stories… Another flaw in our operating system is that we are in the habit of creating stories based on collections of events that occur in our lives.

The author calls this failure a narrative fallacy. It is characterized by exploiting our limited ability to analyze sequences of events without adding an explanation to them. Explanations tie the facts and make them easier to remember, but our brains always seek to tell a story where events are correlated and meaningful.

However, by condensing facts into a single narrative, we end up generating a loss of information and have a great tendency to oversimplify things. We discard the data that makes no sense in our history, and that leaves us at the mercy of the swans. Two Ways to Think… According to cognitive psychologists, we have two kinds of thoughts.

Type 1 thinking is instinctive, fast, immediate, and based on your experience with the world. This system is advantageous for having high speed and helps you react quickly to external stimuli but is also very prone to errors. System 2, on the other hand, is slow, rational and self-aware, much more useful in the classroom not at a time of quick thinking between life and death.

The problem is that we often confuse thoughts from system 1 with system 2 because at level 1 we have no control over them.

Often, we believe that the thoughts that come from system 1 are based on analysis rather than reflexes, and this harms our cognition. System 1 leaves us blind to Black Swans and often misinterprets them as well.

System 1 considers primarily anecdotal data and based on our experience rather than using statistics or empirical data. Know your brain. Have you ever dreamt of being a great author or creating a great company in an innovative market? If this is what you seek, Taleb has an interesting point of view.

The human being needs constant, tangible results and rewards to continue to pursue something. A number of small, constant rewards usually bring more happiness and fulfillment than a substantial reward. There are two types of progress. The uniform and linear, and the nonlinear, which tend to occur in large jumps, alternating with stagnation.

But while we prefer to believe that the world works in a linear perspective, this is not the right way to approach the problem. Nonlinear situations are the most constant in life, and linear conditions tend to be the real exception.

His learning comes from things so diverse and in many cases random that to believe that the linear model is the best model ends up becoming a fallacy. The linear model is adopted in classrooms and books just because they are easier to understand. Besides, the humans have the limitation that in viewing the past, they select the parts of a process that fit his impressions and ignores the parts that do not conform to his preconceptions. Our mind creates a record that ignores the facts which do not fit our mental model, and Taleb calls this the silent evidence.

For example, humans tend to see authors of famous books as extremely talented and attribute the reason for their success to their talents.

Many writers with various works never get to have a book published by a major publisher and become a bestseller.

Therefore, they end up not getting known by the public. As we do not have access to the works of hundreds of thousands of authors who have never had their books published by the major publishers, we tend not to take into account their importance and relevance. We, as human beings, tend to consider only the Black Swans who have had the right combination of talent and luck to secure their place in the hall of fame.

The presence or absence of talent cannot be proven as a cause of success in the publishing world. Silent evidence did not create a black swan and therefore did not receive public attention. Therefore, it is important to be open to the possibility of having unplanned results for our activities.

The Black Swan PDF Summary

That can help us advantageously benefit the Black Swans when they appear. There is a law in statistics, called the law of iterated expectations. It states that the expectation of attaining knowledge by itself is equivalent to the knowledge itself. In practice, Taleb explains that this law acts as follows in our expectations: If I expect something to happen by a certain date in the future, I expect this something in the present.

If you know what the discovery will do in the future, you have almost discovered it. To understand the future to the point of predicting it, you need to incorporate elements of the future into your present, that is, to add uncertainty components in your experiments.

Swans in Practice… If you are ready to embrace your ignorance, here are some practical tips from Taleb to learn how to capture more value from the Black Swans. The first step is to focus on the potential consequences of the unexpected instead of focusing on the likelihood that the improbable will occur. The effects of making a mistake in weather forecasting, for example, are often trivial, while the consequences of making mistakes in stock market forecasts can be devastating.

For this, the idea is to prioritize their beliefs according to the damage they can cause rather than the chance of them happening. What do you believe could have the most significant impact on your life today? Taleb contends that banks and trading firms are vulnerable to hazardous Black Swan events and are exposed to losses beyond those predicted by their defective financial models. The book asserts that a "Black Swan" event depends on the observer, e.

Hence the objective should be to "avoid being the turkey", by identifying areas of vulnerability in order to "turn the Black Swans white". Summary[ edit ] Taleb has referred to the book as an essay or a narrative with one single idea: "our blindness with respect to randomness, particularly large deviations.

Part One and the beginning of Part Two delve into psychology. Taleb addresses science and business in the latter half of Part Two and Part Three. Part Four contains advice on how to approach the world in the face of uncertainty and still enjoy life. Taleb acknowledges a contradiction in the book.

He uses an exact metaphor, the Black Swan idea to argue against the "unknown, the abstract, and imprecise uncertain—white ravens, pink elephants, or evaporating denizens of a remote planet orbiting Tau Ceti.

Who Should Read “The Black Swan”? and Why?

You need a story to displace a story. Metaphors and stories are far more potent alas than ideas; they are also easier to remember and more fun to read. The author then elucidates his approach to historical analysis. He describes history as opaque, essentially a black box of cause and effect. One sees events go in and events go out, but one has no way of determining which produced what effect. Taleb argues this is due to The Triplet of Opacity. She published her book on the web and was discovered by a small publishing company; they published her unedited work and the book became an international bestseller.

The small publishing firm became a big corporation, and Yevgenia became famous. This incident is described as a Black Swan event. The book goes on to admit that the so-called author is a work of fiction.

Yevgenia rejects the distinction between fiction and nonfiction. She also hates the very idea of forcing things into well defined "categories", holding that the world generally is complex and not easy to define.We leave you to find out the details.

The Black Swan Summary

You know that you should read the book and you know who the author is. Soon after he discovered creatures that were not familiar to him nor his crew such as kangaroos, teddy bears — koalas, Australian Dingo and would you know it a black feathered bird that looked exactly like the White Swans in Europe.

Confront facts, research on your own and expand your knowledge 2. Is it something positive, or a mere reflection of the bad things that occur? Black swans are the events that cause vast cognitive transformations, whether minor or enormous, such as the destruction of a sector in the stock market or a political crisis.

Two Types of Improbability To better understand the impact of the unlikely, Nassim Taleb divides human knowledge into two main areas of randomness, separating the two major groups of unlikely effects in our lives. Do you ask yourself these questions as you are reading this? We eagerly romp with him through the follies of confirmation bias [and] narrative fallacy.

Those who have followed the assertive idiot rather than the introspective wise person have passed us some of their genes.

JUDSON from Thornton
Look through my other posts. I have a variety of hobbies, like metalworking. I do fancy reading novels safely .