A Simple Application of Randomness to Your Business
If you've never read "Fooled by Randomness" by Nassim Nicholas Taleb, I recommend you do. The author's fame and notoriety began when he published this work, although the follow-up book, "Black Swan" sparked more immediate and intense interest, having been published as our great financial crisis mushroomed between 2007 - 2009. Indeed, one couldn't turn left or right without someone explaining which "Black Swan" had caused the crisis. The financial services industry couldn't get enough of the phrase, since it appeared to excuse their ignorance, idiocy, and - of course - greed in pursuing policies and activities that gave birth to the crisis and its seemingly endless aftermath.
I read "Fooled" before the crisis really exploded, and was able to grasp some of the many points and rich subtexts the book offers. But frankly it was a bit over my head at the time. I moved on to "Black Swan" and picked up more of the fundamental way of thinking Taleb urges on us. It's hard to believe seven years have passed since, but fortunately I remembered my vow to re-read these works. And so I have recently begun re-reading "Fooled by Randomness, this time more slowly and carefully, and it's worth every minute. Give it time and attention and at the very least it will spur your own thinking about the not only the world of finance, but, more importantly, about the world...period.
For financial professionals out there, his explanation of and thoughts on "Monte Carlo" computations will greatly assist you in a more intelligent and profitable (not just in the monetary sense) use of these engines of calculation. But even if you're not a professional plying the finance trade, you'll appreciate the scattered comments about business and success.
Speaking of business and success, if you've ever been subjected to business conferences, sales meetings, investment conference calls, or other venues where business "leaders" opine on their companies, their products or their "team," you'll appreciate this sample of phrases, which Taleb explains can be thrown together to construct grammatically sound sentences, resulting in an all-too-typical speech that, frankly, contains little, or more accurately, no meaning whatsoever.
On the other hand, if you keep your nose to the grindstone, save your money, and have the courage to step out of the corporate world and run a small business, you may be able to bar the door to this "business-speak" if only within the confines of your own mini-empire. At least that's what I've tried to do, and I must say it's a saner world in which to work.
I read "Fooled" before the crisis really exploded, and was able to grasp some of the many points and rich subtexts the book offers. But frankly it was a bit over my head at the time. I moved on to "Black Swan" and picked up more of the fundamental way of thinking Taleb urges on us. It's hard to believe seven years have passed since, but fortunately I remembered my vow to re-read these works. And so I have recently begun re-reading "Fooled by Randomness, this time more slowly and carefully, and it's worth every minute. Give it time and attention and at the very least it will spur your own thinking about the not only the world of finance, but, more importantly, about the world...period.
For financial professionals out there, his explanation of and thoughts on "Monte Carlo" computations will greatly assist you in a more intelligent and profitable (not just in the monetary sense) use of these engines of calculation. But even if you're not a professional plying the finance trade, you'll appreciate the scattered comments about business and success.
Speaking of business and success, if you've ever been subjected to business conferences, sales meetings, investment conference calls, or other venues where business "leaders" opine on their companies, their products or their "team," you'll appreciate this sample of phrases, which Taleb explains can be thrown together to construct grammatically sound sentences, resulting in an all-too-typical speech that, frankly, contains little, or more accurately, no meaning whatsoever.
We look after our customer's interests / the road ahead / our assets are our people / creation of shareholder value / our vision / our expertise lies in / we provide interactive solutions / we position ourselves in the market / how to serve our customers better / short-term pain for long-term gain / we will be rewarded in the long run / we play from our strength and improve our weaknesses / courage and determination will prevail / we are committed to innovation and technology / a happy employee is a productive employee / commitment to excellence / strategic plan / our work ethics.So have you heard this speech recently? I know I've heard endless variations of it throughout my business career. While Taleb brilliantly captures the essence of meaningless business-speak here, I'm not so sure most of us can follow his advice if we've been subjected to this talk and realize how idiotic it really is: "I suggest looking for a new job" (p. 74). Would that I could have done so or that I might have found a place to settle where such language was unspoken or unheard. But the fact is, so many companies are infected with this sort of language and way of thinking, I'm not too sure where you'd go to avoid it. You could do what Taleb did and become a trader, then an author, college professor and philosopher. But I suspect that route is beyond the grasp of most of us.
On the other hand, if you keep your nose to the grindstone, save your money, and have the courage to step out of the corporate world and run a small business, you may be able to bar the door to this "business-speak" if only within the confines of your own mini-empire. At least that's what I've tried to do, and I must say it's a saner world in which to work.
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