The White Swan

I have been reading Taleb's the Black Swan, which follows his Fooled by Randomness both conceptually and chronologically.  Interestingly, my initial response was not to argue against it, but that most people don't bother to look at white swans either.

In his earlier book, Taleb mentions the unpredictable and unforeseeable event. This book elaborates on that theme and draws its name from the story of the discovery of black swans in Australia. Everyone knew swans were only white and the initial response was disbelief. Even the first specimens sent back to England were considered fakes. So Taleb defines the unpredicted events that happen as "black swans." White swans would then be predictable thing.

However, I really think that Taleb missed a major point. The vast majority of people in business can't deal with white swans. He mentions most people can't express errors and the propagation of errors in their regressions. I think it's much worse than that. Most people can't understand the idea of causation and testing for predicability.

It's a good book and a fun read, thro not as tightly written as the first book. However, I think its gonna be misinterpreted to say nothing is predictable and used as an excuse to justify even sloppier work.

 

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