Thursday, July 15, 2010

Fooled by Randomness

I am currently reading a book "Fooled by Randomness" by Nassim Nicholas Taleb. I have first read about him in "What the Dog Saw" by Malcom Gladwell - in the chapter Blowup. 
As a financial novice, I see everybody has a theory/ practice which is equally convincing in its narration with others. I am still in the middle of the book but I find his ideas radical, new and mostly "against the grain". (un)fortunately I also find Warren Buffet's "Value investing" idea equally great who according to Nassim Taleb may be a monkey out of a billion on the typewriter which happened to compose Illiad.
I also see some similarity between Nassim and warren Buffet:
1. Both see the limitations of reading wall street journal and hot tips dished on television.
2. Both don't time the market to invest in it.
3. Both see the irrationality of price of the stocks.


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