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Halal, Eataly, Firms & Slaves, Coase, Strong Filtering, Flaneuring, Tails

https://twitter.com/nntaleb/status/658225528793661440

https://twitter.com/nntaleb/status/658263753339850752

https://twitter.com/nntaleb/status/658424106384277504

https://twitter.com/nntaleb/status/658448988555902977

https://twitter.com/nntaleb/status/658772186748948480

https://twitter.com/nntaleb/status/658773841435611136

https://twitter.com/nntaleb/status/657227011698663424

STRONG FILTERING as GENERALIZED FLANEURING
This page is not about finance except when the idea generalizes. Here it helps us connect flaneuring to successes such as those of Buffet.
The best thing is to not have to do anything *as a default*. So one commits in those cases that are way too obvious.
+ No schedule except when you can’t do without
+ Have no personal assistant.
+ Have no office, or only use one when strictly necessary.
+ Only write things that you find compelling.
+ Take only those offers that you can’t refuse.

So I figured out something about the success of Munger-Buffett. It is not in the strategies they run, but in their very, very, very strong filtering.
Simply it is generalized flaneuring. Charlie Munger: “We have no system for estimating the correct value of all businesses. We put almost all in the “too hard” pile and sift through a few easy ones”. “Warren (Buffett) talks about these discounted cash flows. I’ve never seen him do one”. (in Tren Griffin’s book)

The implication is that the nuances of the “genre” as strategy matter less than filtering. Because of such nonlinearity, Buffett’s performance is no longer correlated with that of the strategy.

https://twitter.com/nntaleb/status/657511851580923904

https://twitter.com/nntaleb/status/657166498679627776

Why Europeans will eat Halal before long; how morality came about; how GMOs are going bust: The stubborn minority https://t.co/aqvZRfx0qN

— NassimNicholasTaleb (@nntaleb) October 25, 2015

When I die I want to end up at Eataly in Milan: books, food, wine, & people. pic.twitter.com/YbwTuyKCNl

— NassimNicholasTaleb (@nntaleb) October 25, 2015

Why do firms exist? Because of the need for slaves. https://t.co/2VlvtOsuia

— NassimNicholasTaleb (@nntaleb) October 25, 2015

Here is Coase’s seminal paper on the theory of the firm. He missed the point of employee =risk control via SITG https://t.co/NH7WcAM8J4

— NassimNicholasTaleb (@nntaleb) October 26, 2015

Skin in the game workshop, 4 papers on SITG by PhD students at Zurich’s ETH. pic.twitter.com/Ff9PvqfA16

— NassimNicholasTaleb (@nntaleb) October 26, 2015

If you trust Italy’s GDP nmbrs, I have a bridge to sell near Napoli. Italy’s GDP fughedaboud theundergroundeconomy https://t.co/Vk3rHCZPeK

— NassimNicholasTaleb (@nntaleb) October 26, 2015

Strong Filtering as Generalized Flaneuring @trengriffin https://t.co/NjeaStJStQ

— NassimNicholasTaleb (@nntaleb) October 22, 2015

Wrong reasoning with the left tail/systemic risk. We don’t use the argument with plane crashes! https://t.co/z8spFgkiMO

— NassimNicholasTaleb (@nntaleb) October 23, 2015

Latest paper with @dottorpax on method to to do stats with fat tail that are not infinite. https://t.co/SlnjBNZXuH

— NassimNicholasTaleb (@nntaleb) October 22, 2015

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