Saturday 23 March 2013

Taleb, Spitznagel, Prabai and...Buckminster Fuller?



Still on the Antifragile ideas again! 

Although I've seen nearly all of Taleb's talks on Youtube I've just found one that's on Bloomberg only. His latest interview which I found is here: 
http://www.gurufocus.com/news/209020/nassim-taleb--my-fear-of-bonds-is-forcing-me-to-buy-stocks

On another note, an ex-colleague once recommended I also check out Mark Spitznagel of the hedge fund Universa Investment LP. Spitznagel and Taleb has often worked together and share many similar views. Spitznagel also writes articles semi-regularly, some of which can be found here:



Ok, besides the recent 'long volatility' option trader / investors I've been focusing on recently I decided to revisit a Mohnish Prabai value investing interview. I have to say the Prabai interview is very worthwhile and highly recommended. In it he speaks about 'cloning' success! The interview can found here: http://www.youtube.com/watch?v=GBXRNH9VfhA

On a final note, Nassim often speaks about certain environments requiring 'constant stressors' to remain healthy (antifragile). He often uses example of the economy and the human body. For example, if you were to put a human into outer space or a sterile environment without any stress - no stress from gravity or bacteria - then if they were to return back to a normal city life their body would suffer. Imagine someone stepping back into a New York subway immediately after years living in a sterile environment!

This idea of requiring constant stress reminds me of Buckminster Fuller's concepts of tensegrity: constant tension, discontinuous compression. This concept can be seen in building resilient structures and includes the structure of the human body. See an short example here: http://www.biotensegrity.com/continuous_tension_discontinuous_compression.php

For those with an interest in investing, health, architecture I hope you enjoyed this post. Take care


Sunday 10 March 2013

Trading: From Taleb to Jeff Yass and poker


While currently reading Dynamic Hedging by Nassim Nicholas Taleb I came across a mention of Jeff Yass. Taleb says the greater fool theory is well explained by market maker Jeff Yass on his approach to  trading options:

"Somehow "value" is conditional on the most recent information rather than the overall picture. If a market operator is given a position by someone else, he receives more than a position: He gets information, and the information would necessarily eradicate the edge." (Taleb, 1997)

This of course led to do a quick google search on Jeff Yass. Unfortunately I couldn't find any youtube  videos of his interviews/speeches. I found out he was a rather private individual but luckily came in rather comprehensive article published by the Philidelphia Magazine. The article details how Yass has used the disciplines and skills from playing poker to since his college days to consistently win on the markets over the last 30 years.

I enjoyed the article and hope you do too. Although I don't consider myself a trader (or poker) player, like Rakim said, you have to respect the technique!

Link to article is here: http://www.phillymag.com/articles/beating-the-odds/

Friday 1 March 2013

Beyond margin of safety


I'm sure most of you have heard of The Motley Fool so I wanted to recommend a blog by ex-Motley Fool writer Dean Morel called 'Fusion Investing'.

Having recently finished Nassim Taleb's 'Antifragiilty' I the article quite nicely combines the ethos of Benjamin Graham's margin of safety with Taleb's belief's on risk vs return.

The link is here:

http://www.fusioninvesting.com/2013/02/step-beyond-margin-of-safety/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+FusionInvesting+%28Fusion+Investing+and+Analysis%29

Hope you enjoy it!

Cheers