Nobody reads the disclosures that roll down your computer screen. You click 'I agree' but you don't know what you're agreeing to.
Nassim Nicholas TalebRead
When I trade, I don't have an agency problem; I have my neck on the line. When a bank or banker trades, it's not his neck on the line.
Interpretation
The quote highlights the difference in risk and accountability between individual traders and bankers.
Nassim Nicholas Taleb points out that personal investment carries a greater risk because the individual trader has a direct stake in the outcome, whereas bankers, when trading with clients' money, do not bear the same level of personal risk. This distinction emphasizes the importance of accountability in trading and the potential conflicts of interest that arise when others manage finances without personal stakes involved.
In practice
This quote can be used in a finance seminar to illustrate the importance of personal accountability in investment decisions.
Nobody reads the disclosures that roll down your computer screen. You click 'I agree' but you don't know what you're agreeing to.
Fragility is the quality of things that are vulnerable to volatility.
Those who were unlucky in life in spite of their skills would eventually rise. The lucky fool might have benefited from some luck in life; over the longer run he would slowly converge to the state of a less-lucky idiot. Each one would revert to his long-term properties.
Individuals should think about the worst-case scenarios and plan for them. The world will be crazier than you think it will be. Put money away, and then you can live with much more freedom.
A good maxim allows you to have the last word without even starting a conversation.
A Stoic is someone who transforms fear into prudence, pain into transformation, mistakes into initiation, and desire into undertaking.
In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value.
Outperforming the market with low volatility on a consistent basis is an impossibility. I outperformed the market for 30-odd years, but not with low volatility.
I do not understand where the backing of Bitcoin is coming from. There is no fundamental issue of capabilities of repaying it in anything which is universally acceptable, which is either intrinsic value of the currency or the credit or trust of the individual who is issuing the money, whether it's a government or an individual.
Investing is forgoing consumption now in order to have the ability to consume more at a later date.
There will always be bull markets followed by bear markets followed by bull markets
All the math you need in the stock market you get in the fourth grade.
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