Why Reading Nassim Taleb Is Life Altering

Summary

This video delves into the impactful life lessons and decision-making strategies gleaned from Nassim Nicholas Taleb's works. It explores concepts like antifragility, the Lindy effect, and the barbell strategy, advocating for embracing stressors, valuing time-tested ideas, and balancing risk in life and investments. The speaker shares personal anecdotes on how Taleb's principles influenced their approach to career, travel, and personal growth, ultimately aiming for a simple, authentic life unencumbered by societal norms.

Takeaways

• 📚 **Embrace Antifragility**: Seek out stressors to become stronger, like lifting heavier weights to build muscles.
• ⏳ **Lindy Effect**: Value ideas, books, and technologies that have stood the test of time over new, unproven trends.
• 🌍 **Flerin**: Avoid over-planning and embrace randomness in life, including travel, to foster genuine experiences.
• 🎯 **Barbell Strategy**: Balance risky ventures with safe investments to mitigate risk without stifling creativity.
• 💰 **Fu Money**: Achieve financial independence to pursue your passions without external pressures.
• 👨‍⚕️ **Avoid the Cosmetic**: Look beyond appearances and focus on track records and performance in judging success.
• 🚫 **Not All Success is Positive**: Recognize that some success stories are the result of luck and not necessarily good decision-making.
• 🔧 **Bottom-Up Approach**: Value practical, hands-on tinkering over theoretical knowledge in innovation and problem-solving.
• 📚 **Anti-Library**: Embrace the pile of unread books as a symbol of curiosity and the desire to learn.
• 🏡 **Simple Life**: Question societal norms and marketing influences to uncover and pursue your true desires.

Q & A

What is the main theme of the video script about Nassim Nicholas Taleb?

The video script discusses Nassim Nicholas Taleb's influential ideas and how they have personally impacted the speaker's life, focusing on 10 rules of thumb that the speaker has learned from Taleb's works, which have improved their decision-making and success in various aspects of life.

What does the speaker find appealing about Nassim Taleb's approach to life and work?

The speaker admires Taleb's uncompromising behavior, which signals values of freedom and courage. Taleb's ideas have significantly changed the speaker's outlook on life, and his risk-taking approach to trading before writing books is seen as a mark of authenticity.

What is the first rule of thumb mentioned by the speaker from Taleb's concept of antifragility?

The first rule of thumb is to seek external stressors, as antifragility suggests that systems or organisms can benefit from stress up to a point, similar to how muscles grow stronger with resistance training.

How does the Lindy effect influence the speaker's approach to life?

The Lindy effect, which posits that the longer non-perishable items like books, ideas, or technologies have existed, the longer they are likely to survive, helps the speaker filter through new trends and focus on things that have stood the test of time.

What is the concept of 'Flerin' as discussed in the script?

Flerin refers to the practice of wandering around aimlessly, embracing randomness and uncertainty, which contrasts with the over-planned, tourist-like approach to experiences. It encourages exploration and learning across disciplines without a rigid plan.

What is the Barbell Strategy as mentioned in the script?

The Barbell Strategy involves having a mix of extremely risky and extremely safe investments or activities to balance risk. It is applied in life by pursuing a stable career while also investing in potentially high-risk ventures.

What is the significance of 'Fu money' in Taleb's philosophy as explained in the script?

'Fu money' refers to having enough financial independence to not be influenced by others or forced to compromise one's values or desires. It gives one the freedom to pursue authentic interests without external pressures.

Why does the speaker suggest choosing a surgeon who does not 'look the part'?

The speaker suggests choosing a surgeon who does not 'look the part' because such a person has likely overcome significant perception biases to be successful, indicating a strong track record based on performance rather than appearances.

How does the concept of 'bottom-up' versus 'top-down' approach relate to Taleb's ideas?

Taleb emphasizes the 'bottom-up' approach, where decisions and innovations come from individuals directly involved and affected by the outcomes, as opposed to a 'top-down' approach where decisions are made by those removed from direct consequences.

What does the 'Anti-library' concept signify according to Taleb?

The 'Anti-library' refers to the collection of books one has not yet read, symbolizing the vast amount of knowledge one does not yet possess. It serves as a reminder of one's intellectual humility and the continuous journey of learning.

What lesson does the speaker take from Taleb's view on a simple life?

The lesson from Taleb's view on a simple life is to question and uncover one's true desires and tastes, rather than blindly following societal norms or marketing influences, which can lead to a more authentic and meaningful lifestyle.

Outlines

00:00

📚 Embracing Antifragility and the Lindy Effect

The speaker begins by expressing admiration for Nassim Taleb, a risk-taker and influential author whose works have significantly impacted the speaker's life. The first rule highlighted is the concept of antifragility, which suggests that stressors can strengthen certain systems, drawing a parallel to muscle growth through resistance training. The speaker emphasizes the importance of seeking external stressors to build mental fortitude. The Lindy effect is introduced as a principle that values the longevity of non-perishable items, such as books and ideas, over new trends. The speaker shares personal experiences of applying these concepts, like moving to a new country and engaging in uncomfortable situations to foster growth.

05:01

🧳 The Joy of Serendipity and the Barbell Strategy

The speaker criticizes the over-planned approach to travel and life, advocating for the 'flâneur' mindset that embraces randomness and uncertainty. This concept is expanded to include interdisciplinary learning and career choices. The 'barbell strategy' from Taleb's work is discussed as a method to balance risky ventures with safe, stable investments. The speaker shares a personal example of pursuing a creative project like a YouTube channel while maintaining a stable income from tech sales. The importance of financial independence, or 'Fu money,' is also highlighted, using the story of the ancient Greek philosopher Thales to illustrate the point.

10:02

👨‍⚕️ The Relevance of Appearance and Bottom-Up Success

The speaker discusses the importance of not judging a book by its cover, using the example of choosing a surgeon based on appearance versus track record. The concept of 'skin in the game' is introduced, emphasizing the value of those who face real consequences for their decisions. The speaker contrasts top-down and bottom-up approaches, arguing for the latter's superiority in driving innovation and progress. The 'anti-library' is presented as a symbol of intellectual humility and curiosity, encouraging the pursuit of knowledge beyond one's immediate interests. Lastly, the speaker reflects on the pursuit of a simple life, questioning societal norms and the influence of marketing on personal desires.

Keywords

💡Antifragility

Antifragility refers to the concept of systems or organisms that not only withstand stress but actually improve and grow stronger from it. In the video, this concept is used to explain how seeking external stressors can lead to personal growth and resilience. The video narrator emphasizes that antifragility is a principle that should guide one's approach to life, suggesting that embracing challenges and discomforts can lead to greater strength and adaptability, as illustrated by the example of building muscles through lifting heavier weights.

💡Lindy Effect

The Lindy Effect is a theory that the future life expectancy of a non-perishable thing, like a technology or an idea, is proportional to its current age. The older it is, the longer it is likely to live. In the context of the video, the Lindy Effect is used to argue for the value of established ideas, technologies, and practices over new and untested ones. The narrator uses the example of fasting, which has been practiced for millennia, to illustrate the concept, suggesting that its longevity is evidence of its enduring value and safety.

💡Flerin

Flerin, as discussed in the video, is the practice of wandering around aimlessly, as opposed to the structured and planned approach often taken in modern travel. The narrator advocates for this approach to travel and learning, suggesting that it allows for serendipity and a deeper, more authentic experience. The concept is used to critique the 'touristification' of travel and to promote a more exploratory and less predictable way of engaging with the world.

💡Barbell Strategy

The Barbell Strategy, as mentioned in the video, is an investment and life strategy that involves a mix of extremely safe and extremely risky choices. The goal is to minimize risk while still allowing for the potential of high reward. The narrator applies this concept to their career path, suggesting that having a stable job in tech sales allows them to pursue their passion for creating a YouTube channel without financial stress. This strategy is presented as a way to balance risk and safety in both investments and life decisions.

💡Fu Money

Fu Money is a term used to describe a sum of money that provides enough financial security to allow a person to pursue their passions without the pressure of needing to earn an income. In the video, the narrator discusses how financial independence, or 'fu money', enables them to invest in their creative projects without compromising their art for financial gain. The story of the Greek philosopher Thales is used as an example of leveraging one's skills to achieve financial independence.

💡Skin in the Game

Having 'skin in the game' means being personally invested in the outcome of a decision or action, often implying a risk or cost if things go wrong. The video narrator uses this concept to argue for the value of practical experience and real-world consequences in driving successful outcomes. They contrast this with theoretical knowledge, suggesting that those who have 'skin in the game' are more likely to make effective decisions because they are directly affected by the results.

💡Anti-Library

The 'Anti-Library' is a term coined by Nassim Nicholas Taleb to describe the collection of books one has not yet read. The video narrator discusses the concept as a symbol of intellectual humility and curiosity, suggesting that acknowledging the vast amount of knowledge one does not yet possess can be a powerful motivator for learning and growth. The Anti-Library is presented as a reminder of the limitless potential for learning and a spur to continue reading and expanding one's horizons.

💡Bottom-Up Approach

A bottom-up approach is a method of problem-solving or decision-making that starts with the most basic elements and builds up to a complete understanding or solution. In the video, the narrator contrasts this with a top-down approach, arguing that bottom-up methods, which involve tinkering and direct engagement with problems, are more effective for innovation and progress. The example of Switzerland's decentralized governance is used to illustrate how bottom-up systems can lead to better outcomes.

💡Survivorship Bias

Survivorship Bias is the logical error of focusing on the survivors or successful cases while ignoring those that failed. In the video, the narrator warns against this bias, noting that it can lead to an overestimation of the likelihood of success in risky ventures. They use the example of YouTubers, where many fail but are not visible, while the few who succeed are highly visible, creating a misleading impression of the chances of success.

💡Risk Aversion

Risk aversion is the tendency to prefer avoiding losses over acquiring equivalent gains. The video narrator discusses how modern society has become overly risk-averse, leading to a lack of resilience and adaptability. They argue for the importance of embracing risk and uncertainty as a means of building mental fortitude and personal growth, using the example of seeking out uncomfortable situations to challenge oneself.

Highlights

Nassim Taleb is an influential and misunderstood thinker, known for his risk-taking in trading before becoming an author.

Taleb's uncompromising behavior reflects values of freedom and courage.

Studying Taleb's books has significantly changed the speaker's outlook on life.

The concept of antifragility is introduced, suggesting that stressors can lead to growth, similar to how muscles grow stronger.

Modern society is criticized for shielding individuals from stressors, leading to atrophy.

The Lindy effect is discussed, illustrating that the older non-perishable items are, the longer they are likely to survive.

The speaker uses the Lindy effect to filter through ideas, books, and technologies, favoring those that have stood the test of time.

Flerin, or the reverse tourist, is introduced as a way to embrace randomness and uncertainty in travel and life.

The Barell strategy is explained as a way to balance risky and safe investments to manage risk effectively.

The concept of 'Fu money' is discussed, highlighting the importance of financial independence for pursuing one's true ambitions.

The speaker emphasizes the importance of not judging success solely by external appearances, as success can be deceiving.

The idea that not all success is positive is introduced, challenging the glorification of risky endeavors.

The superiority of a bottom-up approach over a top-down approach is discussed, emphasizing practical experience over theoretical knowledge.

The 'Anti-library' concept is introduced, which is a collection of unread books that represent one's intellectual curiosity.

The difficulty of building a simple life is highlighted, as it requires questioning and uncovering one's true desires.

Transcripts

Nasim Talib is one of the most

influential and misunderstood thinkers

of our era brilliant author who is not

your typical slick polished well spoken

intellectual I derive a huge amount of

pleasure from Twitter fights yes what

sets him apart is that he was a risk

taker and made a fortune trade in before

writing his books a lot of people have

mixed feelings about him and his

attitude so removing Economist from the

planet would improve the planet okay

well personally his uncompromising

Behavior signals values that resonate

with me freedom and courage but most

importantly studying his books

completely changed my outlook on life in

a very short time and in this video I

want to dive deep into the 10 rules of

thumb that I learned from Nim Talib

which improved my decision-making

ability helped me increase my Arts of

success in my field and that will help

you avoid ruining your life now before I

start understand that I cannot summarize

in the same TPS books he'll probably

block me on Twitter if I try to I do not

read his books I study them I've read

all of them at least three times and

every time I reread his books I pick up

on something I couldn't understand on

the previous read and these heris sixs

I'm going to share with you really

helped me navigate Life as a manager a

creative and human being the first book

I picked up by Nim taleb was anti

fragile and I was probably 21 years old

uh the first time I've read it probably

too young to understand a lot of the

concepts on the book but my main motive

was to understand the word better even

though I lack the real life experience

to help me absorb the nuances of the

book the overall concept of

antifragility made sense immediately and

that's the first rule of thumb that

stuck with me seek external stressors

antifragility is a concept that anyone

who ever built muscles will understand

intuitively basically Nim TB explains

that there are three different types of

organisms or systems first The Fragile

which does not benefit from external

stress at all think of a glass that can

break from the smallest external shock

second the robust which does not easily

get harmed nor benefit from external

shock and third is the antifragile which

benefits from external stress up to a

point think of a muscle that grows

bigger and stronger the heavier you lift

we humans are anti fragile as

individuals as in what doesn't kill me

makes me stronger and as a species as in

what can kill me makes others stronger

businesses Thrive because of the failure

rate is converted into benefits for the

system what kills me makes others

stronger the problem is our modern era

made it that we're so sheltered from

external stressors that we atropy

physically mentally and spiritually

instead of building mental Fortitude by

taking certain type of risks we've

become so fragile risk averse and to be

honest domesticated so after reading the

book three times I conditioned myself to

seek antifragility everywhere whether

it's moving to a new country where I

didn't know anyone or exposing myself

regularly to situations where I'm

uncomfortable like speaking in front of

other people or approaching a girl I

like all of these small risks made me

more robust but another way to build

mental fortitude that I learned from the

Sim talb is to dive into ancient and

classical wisdom which brings me to the

second her istic the Lindy effect back

in the 1960s comedians in New York City

used to gather in the Lindy delicat

Essen in Broadway to discuss Show

Business and they observe something

fascinating they discovered that a play

that had been around for 200 days had an

extra 200 days of life expectancy and

and a thousand days thousand more days

it became known as Lindy effect but this

is not only limited to Broadway shows

it's applicable to all non- perishable

items in contrast to perishable items

like human beings the life expectancy of

books ideas religions Concepts increases

the longer they exist a book that

survived for 40 years has a high chance

to still be around for another 40 years

so how is this Lindy law useful well

personally it helped me filter through

ideas books Technologies and even diets

every day there is some hot new thing a

new technology a new study being sold to

us that presumably fasting is unhealthy

or that eggs will kill you then you

realize that these are things that stood

the test of time for example I just

finished a month of fasting for Ramadan

fasting has been around for Millennia if

it was really unhealthy we'll know it by

now the health and spiritual benefits I

got from it are intangible and another

way I implemented Lindy in my life is to

read more old books that survived for

centuries or Millennia instead of the

latest crisp looking New York Times

bestseller and the third her is sick is

flerin you see Nasim talb even changed

the way I travel I'm currently in Geneva

Switzerland and if there's something I

agree on completely with Nim talb is the

sad phenomenon of the touristification

of travel I can't hide the score and I

have for people who travel with everyday

plan to the precise sign leaving no room

for Randomness and uncertainty and I

think you got to be a little bit dead

inside to live that way the fler on the

other hand is the reverse tourists

basically wanding around aimlessly and

it just makes the whole experience

thrilling and Florin is not limited to

travel alone and seem talks about fering

across disciplines and how he approached

his own career and explains how school

is the touristification of knowledge

basically and to be honest school made

me hate reading books for a long time

until I discovered that I only hated

being told what to read so instead now I

just follow my genuine curiosity and

fler around disciplines but I'm not

saying you should not develop a strong

expertise to offer to the world I mean

we still have to pay rent and earn a

living which brings me to to the fourth

here sick the baral strategy one of the

most helpful Concepts that I learned

from theim tb's book The Black Swan is

the baral strategy he talks about it

mainly in investment strategy but to be

honest it's applicable in life in

general and the goal of the strategy is

to have a mix of extremely risky and

extremely safe Investments that helps

you balance the risk in my case for

example I want to build a YouTube

channel so I needed to build my skill

set in videography editing

and storytelling we all know YouTube is

a risky career path there a lot of

uncertainty and most YouTubers never

make it so to avoid ruining my life I

needed a stable income from a lucrative

career that will help me earn a living

and invest some of the money into my

skill set and gear so I pick Tech sales

as a profession a lot of people can just

quit their job put all their eggs in one

basket and start a business and a few of

them succeed but a lot more fail because

of the survivorship bias we cannot read

about the ones who fail and in my

opinion the best way to leverage the

barble strategy is to have a stable

income on the side ideally from a

profession where you can learn skills

that will help you afterwards in your

entrepreneurial venture or a creative

business while you're pursuing your

creative projects on the side with no

Financial stress then you can go really

aggressively with whatever savings

you're willing to invest in your Venture

personally I invest a lot in film making

courses in gear in travel to film

content without ruin in my life and

because I don't need to generate an

income from YouTube it doesn't

compromise my art and I can be as

authentic and uncompromising as I want

here which brings me to the fifth her is

sick Fu money there is a story that I

love that Nasim Talib shares from

Aristotle's book politics it's about the

great Greek philosopher Tales basically

Tales was criticized and mocked by his

peers who were Merchants back in ancient

Greece he told him that philosophy

amounted to nothing since it was broke

that didn't sit well with Tales at all

so he decided to leverage a skill he had

to prove them wrong by using his skill

in astronomy he predicted that there

will be great harvest for olives in the

coming year he put the little money he

had as deposit for the use of olive

presses during Harvest and when Harvest

Time came the demand for Olive presses

surged through the roof and tales

basically L them out at whatever price

he wanted and he made a fortune and he

proved to his peers that philosopher can

easily be rich if they want it but their

ambition lies elsewhere as the ancient

version of a few money and to be honest

the same can be told for Nasim talib's

career was in business school I

accidentally discovered probability

Theory and became obsessed with it a

friend told me about complex derivatives

and I decided to make a career in them

this discovery allowed me to Achieve

Financial Independence in my 20s after

the crash of 1987 having Fu money

basically gives you options options an

option to pursue what you really want to

pursue being uncompromising in your

craft and not taking from people

who want to use their leverage on you I

didn't pick trading personally but sales

was the closest thing to help me

generate the income that will help me

buy my freedom in the future the sixth

her isic is surgeons should not look

like surgeons okay imagine this God

forbid you have to undergo a high-risk

brain surgery next week you're at the

hospital and they give you the choice

between between two neurosurgeons both

have the same track record same

credentials and same experience the

first surgeon looks like he was out of

Gray's Anatomy slick silver hair

well-mannered he looks the part the

second one looks more like a butcher

short and overweight speaks with no

filter with a strong New York accent and

even has a gold tooth and does not seem

to care at all about his appearance well

the first time I personally went through

this mental exercise I picked the first

one seemed like the safest option but

but if we really want to avoid being

suckers as Nim would say we need to pick

the second one this person had to

overcome because not it's not judged At

All by anything external judged entirely

by the track record you see by the

performance you have to overcome all

this perception bias to get there so

this is it when a field that has skin in

the game the Cosmetic Beware of the

Cosmetic the one who does not look the

parts and is successful in his field had

to to overcome much more obstacles in

terms of perception he succeeded in

spite of his looks seven not all success

is positive after reading Fooled by

Randomness it completely changed my

definition of success I used to admire a

lot of successful people who took

tremendous risks you know the ones who

were on the brink of bankruptcy but made

it work at the end and used to overlook

ordinary successful people a lot of them

were close to me and they made a ton of

money in a slow steady way they had

control over their lives and they were

not fleshy at all and I realized that a

lot of successful people just took

really stupid risks and got away with it

you can find a thousand other people who

used the same strategy as these

successful people but failed completely

but they're not the ones writing books

and giving conferences eight bottom up

Vis is a top down approach throughout

the in serto uh Nasim Talib emphasized

the superiority of a bottomup approach

versus a top down approach the more

skinning the game someone has not only

in terms of incentives but also

disincentives as in if they make a

decision and they're wrong they PID the

price for it the better the outcome Nim

emphasizes how tinkerers Engineers

entrepreneurs contributed a lot more to

society than academics most discoveries

inventions technological advancements

came from tinkering and actually having

skin in the game in the process not

through Theory I'm currently in the most

bottomup governed country probably in

the world Switzerland in contrast to

France Switzerland is extremely

decentralized it's a direct democracy so

people and the K govern themselves I was

surprised to see how much power the

actual municipality has here it really

set the rules for each town and if you

don't respect the rules you get fined

and you actually pay for it and

Switzerland is one of the cleanest

safest well-governed countries in the

world and it's a great example of how

having skin in the game lead to better

outcomes nine is the aunti library Nasim

is really good at coming up with witty

Notions like this what he means by the

ATI library is the pile of books you

have that you still didn't read yet I

always felt bad when I had a pile of

books that I didn't read yet and I

always praised myself on having read all

the books on my bookshelf but the

reality is the more books you read the

more books you buy the more you read the

more your curiosity grows because you

realize how much you don't know so

having an anti Library a shelf or a pile

of books that you didn't read yet and

investing in growing your auntie library

is a really good idea it's a constant

reminder that you still don't know a lot

about the world so this year instead of

feeling bad about the pile of unread

books I had I double down on it and I

started growing my ATI library and the

last yearis SI is building a simple life

is hard in his commencement speech at

the American University of Beirut Nasim

Tali mentioned that when he made a lot

of money he realized that he didn't like

a lot of the sophistication that came

with being rich I discovered that I

hated Fame I hated famous people I hated

caviar I hate champagne complicated food

expensive wine and mostly people who

comment on wine instead of having my

preferences dictated by Norms that of

magazines for rich people rich people

can be the easiest praise for marketers

and sales people and marketers are

really good at playing on mimesis this

contagion between people we want what

others want and it creates this

competition between them and the easiest

thing that can happen when becoming rich

is to have a very sophisticated

lifestyle but what's really hard is

questioning our desires uncovering our

real thick desires and real tastes

instead of blindly following what

corporate advertising dictate to us and

that's something I really think about

now spending the time to think about our

deep desires and uncovering them is

really hard that's why in May I'm

secluding myself in Norway for a few

days to really think about my deep and

thick desires and I'll keep you posted

on how the exercise goes don't forget to

subscribe and like and I'll see you in

the next video