Fooled By Randomness
Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
Nassim Nicholas Taleb
What it’s about
Fooled by Randomness is a standalone book in Nassim Nicholas Taleb's landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don't understand. The other books in the series are The Black Swan, Antifragile, Skin in the Game, and The Bed of Procrustes.
Why I like it
Taleb writes with wit and clarity on subjects which are conceptually challenging but essential to understand for those seeking to manage or invest based on the principles of value. In this book, the role of chance and the importance of thinking probabilistically are described and demonstrated through many angles and examples. I know of no other book which is so capable of explaining what it means to think probabilistically while also demonstrating the importance of doing so when assessing situations or making decisions.