Book Recommendation- The Black Swan- Nassim Nicholas Taleb
One of the most profound ideas of recent times that has become mainstay in academic and philosophical circles is the idea of the “Black Swan”. This term was made famous by Nassim Nicholas Taleb’s book “The Black Swan”. Published in 2007 this book became an immediate best seller (No 1 on the New York Times list).
Taleb dwells on the unpredictable and the uniquely human attribute of ‘rationalizing’ the past. The term is coined from the Latin expression- “rara avis in terris nigroque simillima cygno" ("a rare bird in the lands and very much like a black swan"). The ancients believed all swans had to be white. This was of course till the discovery of black swans in New Zealand. Thus a black swan is an event that everyone believes is impossible till it happens (Trump election anyone?).
From a financial/ investing perspective the idea of the Black Swan is an important concept to imbibe in planning and portfolio construct. This is a highly entertaining and useful read.