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| Jul 3, 2016 | » | 03. Those Grey Swans of Extremistan
2 min; updated Sep 5, 2022
Notes Mediocristan vs Extremistan: In Extremistan, one single observation can disproportionately affect the outcome. Universa, a hedge fund made to exploit black swans, made 3,612% in March 2020 amidst the coronavirus crisis. Taleb is an advisor on the fund. However, on a ‘normal’ day, Universa is always losing money. If finance were Gaussian, then the 2008 crash (more than 20 std) would take place every several billion lifetimes of the universe.... |