(2022_19) Skin in the Game - Nassim Taleb

 

Even though I'm a big fan of Taleb, there are some parts that I can't agree with.

 

First, I totally agree the importance of hands-on experience. However, theory is equally important as well. The point is the balance between them. For example, there are a lot of youtubers who claim themselves as expert on investment. It's true that they made a huge success in investment in real estimate or stocks. They have actual experience in the market. But are they really experts? Until now it seems like that. But the problem is, that they only experienced bull market. A large part of them started investment in mid-2010. They haven't yet proven themselves to be genuine experts.

 

Second, he emphasizes the soul in the game. It means something more than skin in the game. Theoretically, it is right to minimize or eliminate asymmetry in any fields because history shows a lot of side effects arose from asymmetry. But sometimes it is inevitable. We are living in the society too complex to exist without asymmetry. I'm actuary, so I can show one example: insurance can't exist without data provided from policyholders. We actuaries analyze THEIR data, not OUR data. Insurance product exists based on asymmetry. There are lots of cases like this. So, what I get is just to recognize the problem AND inevitability of asymmetry from a practical point of view.

 

Keeping balance is always not easy.