Nassim Nicholas Taleb: 'you should study risk taking, not risk management'

Live from RiskMinds International, Nassim Nicholas Taleb, Trader and Scholar & Risk Engineer at NYU-Tandon School, shares his thoughts on our understanding of risk, the human factor, and what our grandmothers got right.

[BlueSoulTiger]

01:00 there is high economic risk, increase in debt
01:21 have increase in moral hazard, people gaming the system
01:38 there should be no risk management, you should study risk-taking
02:15 you have to worry about an industry that is dominated by non-risk-takers discussing risks
02:30 big data brings more risks than it solves
03:04 too much data yet our technical understanding has not grown
03:18 machine learning, AI will not help with fat-tails
03:48 psychologists shouldn't tamper with paranoia
04:18 have paranoia about ruin, leave risk-taking for things that do not entail ruin; volatile income + lower tail-risk > smooth income streams + higher tail-risk
04:54 opportunities in crises exist
05:24 the large majority of grandmothers' findings have been replicated and hold (unlike those of the majority of psychology papers)
06:16 (wrt globalisation) the world has lost its "island" properties
08:10 localism > globalism
09:00 what holds for 2019? well be talking about the same things next year, as we did this year

[Riggsnic_co]

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?

[raulvillegas]

so the last time he was in riskminds was 98" two years before the 00´s crash, and here he is 2018" two years before the 2020´s crash? :o he is gonna be my new crash indicator

[JoeGrimer]

unexpectedly dense video - in a good way

[RowanGontier]

People need to study getting off their butts, and reducing the risk when moving at speed.

[albertog]

Anyone else is listening to this during the chinese flu Pandemic?

[HussainFahmy]

*_Risk management is a component of risk-taking._*

[brettyoung]

That point about incorporating prior relevance is pure Bayesian

[Adtonius]

But WHAT are the grandmothers right about? That's what I want to know

[LawrenceMabel-yy]

Taylor Robert Allen Cynthia Martinez Charles

[sourabhvora]

Shits wherever he eats. Imma outta here.

[emilnedev]

😁 I think someone’s wishful thinking is still there ... listen, keep this Corona bull up all you want - next “risk” I take is a lawsuit 🙂👍

[carl]

I just love this man. This is the calmest and most endearing I've seen him. He's just off the scale insightful.

[nodaklojack]

One of the smartest out there. People should follow him more than any other financial commentator.

[mattharris]

I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Mrs Maria Reyes.

[stuartdriedger]

this guy summarizes in one sentence why AI will never take over

[citizen]

taking risks that don't lead to ruin, like being a concerned and genuine person who cares on multi levels. thnk you Taleb

[citizen]

what surprises me is that there are only 3.7k people who liked this video, that means we have been tough by a deep end genius....

[johnorajiaka]

We will be talking about the same thing today, and in ten years ahead with some variation. Taleb's mindset is deep and profound!

[isaiasyoyo]

Wow! Never thought of this. I was actually looking up the software— I’m at the pony where I have risk of course, but I have been doing risk management too but this is a new perspective for me! especially your words on paranoia