Book 81 of 141

    From the library

    Skin in the Game

    Nassim Nicholas Taleb, 2018

    In one paragraph

    The phrase "skin in the game" is one we have often heard but have rarely stopped to truly dissect. It is the backbone of risk management, but it's also an astonishingly complex worldview that, as Nassim Nicholas Taleb shows in this book, applies to literally all aspects of our lives. In his inimitable style, Taleb pulls on everything from Antaeus the Giant to Hammurabi to Donald Trump to Seneca to the ethics of disagreement to create a jaw-dropping tapestry for understanding our world in a brand new way.

    The phrase "skin in the game" means that you do not pay attention to what people say, only to what they do, and to how much of their necks they are putting on the line. This willingness to accept one's own risks is an essential attribute of people in all walks of life. Taleb challenges long-held beliefs about those who control our military, finances, religions, and so much more-- and shows how "skin in the game" applies to all aspects of our lives.

    Where this sits in the operating system

    Internal Scorecard

    Purpose & Meaning

    Behavioral Psychology Awareness

    Continuous Improvement & Feedback Loops

    Recovery Protocols

    Compound Leverage

    Right People First

    People & Relationships

    Key insights

    Never take advice from someone who bears no cost if they are wrong. Asymmetry of exposure is the corruption.

    The minority rule: a small intransigent group can set the standard for everyone, which explains more market behaviour than preference does.

    Ergodicity is the technical core: what happens to an average person across time is not what happens to the average of many people at one time.

    Recognise it early

    The failure and the correction sit side by side deliberately. Read the left column asking whether any of it is already true of you.

    What goes wrong

    Moral hazard

    Require skin with authority; adjust comp or role

    Over‑optimization

    Add slack; decouple systems

    Irreversible big bets

    Slice into small options with capped downside

    Centralized fragility

    Push decisions to edges with accountability

    Addition bias

    Via negativa; remove before adding

    The same idea, argued differently

    Plato

    Ron Chernow

    Thomas J. Stanley

    Roger Fisher, William Ury

    The full breakdown

    Before you close this

    Naming the specific moment you will act roughly doubles the odds you do.

    Reference

    Author
    Nassim Nicholas Taleb
    Published
    2018
    Category
    Philosophy

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