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
Banking is a very treacherous business because you don't realize it is risky until it is too late. It is like calm waters that deliver huge storms.
Interpretation
Banking can seem safe until hidden risks lead to significant consequences.
Nassim Nicholas Taleb uses this quote to illustrate the deceptive nature of the banking industry, where the calmness and stability often mask underlying risks. Just as serene waters can conceal dangerous storms, banking practices can appear secure until unforeseen events trigger crises, highlighting the importance of recognizing and preparing for potential dangers in seemingly stable systems.
In practice
In a financial seminar discussing risk management strategies.
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.
Those who don't manage their money will always work for those who do
When getting help with money, whether it is insurance, real estate or investments you should always look for a person with the heart of a teacher, not the heart of a salesman.
I'll always understand the Schadenfreude aspect to short-selling. I get that no one will always like it. I'm also convinced to the deepest part of my bones that short-selling plays the role of real-time financial watchdog. It's one of the few checks and balances in the market.
Saving is a fine thing. Especially when your parents have done it for you.
Indeed, bull markets are fueled by successive waves of prior skeptics finally capitulating as their fears fade. Eventually, fear turns to euphoria, and that's the stuff of bubbles.
Donβt buy luxuries until youβve built the assets to afford them
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