"Taleb's Ten Principles for a Black Swan Robust World"
Insights from Nassim Nicholas Taleb
(Thank you to Douglas Reid of Queens University School of Business for the lead.)
1/ What is fragile should break early while it is still small. Nothing should ever become too big to fail.
2/ No socialisation of losses and privatisation of gains.
3/ People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.
4/ Do not let someone making an 'incentive' bonus manage a nuclear plant – or your financial risks.
5/ Counter-balance complexity with simplicity.
6/ Do not give children sticks of dynamite, even if they come with a warning.
7/ Only Ponzi schemes should depend on confidence. Governments should never need to 'restore confidence'.
8/ Do not give an addict more drugs if he has withdrawal pains.
9/ Citizens should not depend on financial assets or fallible 'expert' advice for their retirement.
0/ Make an omelette with the broken eggs."
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