What Nassim Taleb Did on Black Monday 1987

Discussion in 'Strategy Building' started by Error Correction Funder, Mar 24, 2018.

  1. Pekelo

    Pekelo

    Finance professors (what Taleb is) are seldom great traders/investors. I actually can't name one...
     
    #11     Mar 25, 2018
    MaxPastukhov and Butterball like this.
  2. Maverick74

    Maverick74

    He taught mostly advanced mathematics. Here, I'll help you. Ed Thorp. Maybe the best trader that ever lived. Google him.
     
    #12     Mar 25, 2018
    .sigma and johnarb like this.
  3. Just read up on him, and he seems to be a pretty successful and smart guy. From wikepedia:

    His first non-technical book, Fooled by Randomness, about the underestimation of the role of randomness in life, published in 2001, was selected by Fortune as one of the smartest 75 books known.[46]

    His second non-technical book, The Black Swan, about unpredictable events, was published in 2007, selling close to 3 million copies (as of February 2011). It spent 36 weeks on the New York Times Bestseller list,[47] 17 as hardcover and 19 weeks as paperback,[18][48] and was translated into 31 languages.[18] The book has been credited with predicting the banking and economic crisis of 2008.

    Essentially calling the 2008 crash puts him ahead of like 99% of ETers I would guess. But elsewhere it did say his overall performance has not been all that great - long periods of relatively dry performance (bull markets) punctuatte by periods of greatness (crashes). I guess that just goes to show that you can't invest/trade as if tomorrow is going to be a black swan event - else over time the bull markets will always prevail in the end and you will be left behind.
     
    #13     Mar 25, 2018
  4. Pekelo

    Pekelo

    So are Kid Rock and 50 Cents, but that doesn't make them a good trader. :)
    (in fact, both are better investors than Taleb)

    The point is, his success came from writing books, not from managing/trading money.
     
    #14     Mar 25, 2018
  5. Oh I hear you Pakelo. No doubt. Wikepedia pretty much says as much.
     
    #15     Mar 25, 2018
  6. manonfire

    manonfire

    Universa and Mark Spitznagel are no where near bankrupt.

     
    #16     Mar 25, 2018
  7. sss12

    sss12

    Neither followed NT strategy too closely. Actually a point of debate how involved with Universal he even was.
     
    #17     Mar 25, 2018
  8. black Monday was rigged scam
    some big time 'racket' shorted and profit.
     
    #18     Mar 25, 2018

  9. That video is all well and good, but what is the magical 1% of portfolio tail hedge? I just find it a little hard to believe that you can implement this magical tail hedge and avoid all the big crashes yet catch all the big upside. I want to believe, but just seems impossible.

    By the way, how does the video relate to Taleb, Universa, and/or Mark Spitznagel? Don't know who is in that video.

    Thanks!
     
    #19     Mar 25, 2018
  10. Pekelo

    Pekelo

    Is this the new standard? Not bankrupt yet = success???
     
    #20     Mar 25, 2018