From Financial Times
By Nassim Nicholas Taleb
Published: April 7 2009 20:02
These are the 10 principles read the article to see each items explanation.
A free registration is required to read articles at the Financial Times. Via: Max Zeledon
- What is fragile should break early while it is still small.
- No socialisation of losses and privatisation of gains
- People who were driving a school bus blindfolded (and crashed it) should never be given a new bus
- Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks
- Counter-balance complexity with simplicity.
- Do not give children sticks of dynamite, even if they come with a warning
- Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”
- Do not give an addict more drugs if he has withdrawal pains
- Citizens should not depend on financial assets or fallible “expert” advice for their retiremen
- Make an omelette with the broken eggs.