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"The prototypical entrepreneur is highly risk-seeking to the point of irrationality. A simple cost-benefit analysis would dissuade most people from traveling do
by dpapathanasiou 14y ago
"The prototypical entrepreneur is highly risk-seeking to the point of irrationality. A simple cost-benefit analysis would dissuade most people from traveling down this path; yet, the entrepreneur is an entrepreneur because of the risk involved."
If that is his understanding of Taleb's book, then he has misread it completely.
Taleb says the best approach is a dumbell strategy, combining conservative choices with convex options whose downside risk is fixed or finite but whose upside is unlimited.
- wpeng 14y agoThanks for the comment - appreciate it and thanks for reading. I qualify that point with the following paragraph: "When you look at the decision tree from that perspective, it seems not so bad: failure is always the same, a zero, while the return (however you define it: monetary, happiness, utility, etc.) is astronomical, and worth it."