
From the library
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
Purpose & Meaning
Continuous Improvement & Feedback Loops
Compound Leverage
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.
Moral hazard
Over‑optimization
Irreversible big bets
Centralized fragility
Addition bias
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
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