The Black Swan: The Impact of the Highly Improbable (With a new section: "On Robustness and Fragility")

( 234 )

Overview

The Black Swan is a standalone book in Nassim Nicholas Taleb’s landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don’t understand. The other books in the series are Fooled by Randomness, Antifragile, and The Bed of Procrustes.

A black swan is a highly improbable event with three principal characteristics: It is unpredictable; it carries a massive impact; and, after the fact, we concoct an ...

See more details below
Paperback
$10.62
BN.com price
(Save 37%)$17.00 List Price

Pick Up In Store

Reserve and pick up in 60 minutes at your local store

Other sellers (Paperback)
  • All (45) from $3.86   
  • New (19) from $9.49   
  • Used (26) from $3.86   
Black Swan: The Impact of the Highly Improbable (With a new section:

Available on NOOK devices and apps  
  • NOOK Devices
  • NOOK HD/HD+ Tablet
  • NOOK
  • NOOK Color
  • NOOK Tablet
  • Tablet/Phone
  • NOOK for Windows 8 Tablet
  • NOOK for iOS
  • NOOK for Android
  • NOOK Kids for iPad
  • PC/Mac
  • NOOK for Windows 8
  • NOOK for PC
  • NOOK for Mac
  • NOOK Study
  • NOOK for Web

Want a NOOK? Explore Now

NOOK Book (eBook)
$13.99
BN.com price

Overview

The Black Swan is a standalone book in Nassim Nicholas Taleb’s landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don’t understand. The other books in the series are Fooled by Randomness, Antifragile, and The Bed of Procrustes.

A black swan is a highly improbable event with three principal characteristics: It is unpredictable; it carries a massive impact; and, after the fact, we concoct an explanation that makes it appear less random, and more predictable, than it was. The astonishing success of Google was a black swan; so was 9/11. For Nassim Nicholas Taleb, black swans underlie almost everything about our world, from the rise of religions to events in our own personal lives.
 
Why do we not acknowledge the phenomenon of black swans until after they occur? Part of the answer, according to Taleb, is that humans are hardwired to learn specifics when they should be focused on generalities. We concentrate on things we already know and time and time again fail to take into consideration what we don’t know. We are, therefore, unable to truly estimate opportunities, too vulnerable to the impulse to simplify, narrate, and categorize, and not open enough to rewarding those who can imagine the “impossible.”
 
For years, Taleb has studied how we fool ourselves into thinking we know more than we actually do. We restrict our thinking to the irrelevant and inconsequential, while large events continue to surprise us and shape our world. In this revelatory book, Taleb explains everything we know about what we don’t know, and this second edition features a new philosophical and empirical essay, “On Robustness and Fragility,” which offers tools to navigate and exploit a Black Swan world.
 
Elegant, startling, and universal in its applications, The Black Swan will change the way you look at the world. Taleb is a vastly entertaining writer, with wit, irreverence, and unusual stories to tell. He has a polymathic command of subjects ranging from cognitive science to business to probability theory. The Black Swan is a landmark book—itself a black swan.
 
Praise for Nassim Nicholas Taleb
 
“The most prophetic voice of all.”—GQ
 
Praise for The Black Swan
 
“[A book] that altered modern thinking.”The Times (London)
 
“A masterpiece.”—Chris Anderson, editor in chief of Wired, author of The Long Tail
 
“Idiosyncratically brilliant.”—Niall Ferguson, Los Angeles Times
 
The Black Swan changed my view of how the world works.”—Daniel Kahneman, Nobel laureate
 
“[Taleb writes] in a style that owes as much to Stephen Colbert as it does to Michel de Montaigne. . . . We eagerly romp with him through the follies of confirmation bias [and] narrative fallacy.”—The Wall Street Journal
 
“Hugely enjoyable—compelling . . . easy to dip into.”Financial Times
 
“Engaging . . . The Black Swan has appealing cheek and admirable ambition.”—The New York Times Book Review

Read More Show Less

Editorial Reviews

From Barnes & Noble

We think we know much more than we actually do. If we see a thousand white swans or ten thousand white swans, we assume erroneously that all swans are white. When we look in the rear-view mirror of history, events tend to arrange themselves much more neatly than when they actually occurred. Nassim Nicolas Taleb's Black Swan invites us to contemplate on how things, from the spread of religions to the fall of economic markets, are palpably unpredictable. In hardcover, this book became a surprise bestseller; indeed, one might call an authentic black swan. Now updated in paperback. Editor's recommendation. (Hand-selling tip: This second edition contains a new section on "Robustness and Fragility.")

From the Publisher
Praise for Nassim Nicholas Taleb
 
“The most prophetic voice of all.”—GQ
 
Praise for The Black Swan
 
“[A book] that altered modern thinking.”The Times (London)
 
“A masterpiece.”—Chris Anderson, editor in chief of Wired, author of The Long Tail
 
“Idiosyncratically brilliant.”—Niall Ferguson, Los Angeles Times
 
The Black Swan changed my view of how the world works.”—Daniel Kahneman, Nobel laureate
 
“[Taleb writes] in a style that owes as much to Stephen Colbert as it does to Michel de Montaigne. . . . We eagerly romp with him through the follies of confirmation bias [and] narrative fallacy.”—The Wall Street Journal
 
“Hugely enjoyable—compelling . . . easy to dip into.”Financial Times
 
“Engaging . . . The Black Swan has appealing cheek and admirable ambition.”—The New York Times Book Review
Gregg Easterbrook
The hubris of predictions—and our perpetual surprise when the not-predicted happens—are themes of Nassim Nicholas Taleb's engaging new book, The Black Swan. It concerns the occurrence of the improbable, the power of rare events and the author's lament that "in spite of the empirical record we continue to project into the future as if we were good at it." We expect all swans to be white and are shocked when a black swan swims by.
—The New York Times
Library Journal

Taleb is concerned with black swans, i.e., unpredictable and improbable events that have great impact. Among the examples of these he cites are the rapid spread of the Internet and the 9/11 attacks. People endeavor to explain black swans after they occur, but they cannot do so in advance. Despite the crucial effects of these events, economists and other supposed experts in prediction fail to allow for them; indeed, their theories often deny their possibility. Because of this failure, Taleb maintains that much business forecasting is useless. To him, only a few economists, e.g., Friedrich Hayek, grasp the vital importance of uncertainty and escape condemnation. Taleb extends his indictment of conventional approaches to risk, contending that the bell curve, a key tool of many standard theories, often fails to fit the actual world. He further posits that people tend not to cope with a black swan properly, tailoring their response to specific details of the incident rather than generalizing their response. Taleb's excellent book, which continues and extends his earlier Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets, effectively exposes many common illusions. Recommended for all collections.
—David Gordon

Read More Show Less

Product Details

  • ISBN-13: 9780812973815
  • Publisher: Random House Publishing Group
  • Publication date: 5/11/2010
  • Edition number: 2
  • Pages: 480
  • Sales rank: 59,161
  • Product dimensions: 8.22 (w) x 11.70 (h) x 1.02 (d)

Meet the Author

Nassim Nicholas Taleb has devoted his life to problems of uncertainty, probability, and knowledge. He spent nearly two decades as a businessman and quantitative trader before becoming a full-time philosophical essayist and academic researcher in 2006. Although he spends most of his time in the intense seclusion of his study, or as a flâneur meditating in cafés, he is currently Distinguished Professor of Risk Engineering at New York University’s Polytechnic Institute. His main subject matter is “decision making under opacity”—that is, a map and a protocol on how we should live in a world we don’t understand.
 
Taleb’s books have been published in thirty-three languages.

Read More Show Less

Read an Excerpt

PROLOGUE

ON THE PLUMAGE OF BIRDS

Before the discovery of Australia, people in the old world were convinced that all swans were white, an unassailable belief as it seemed completely confirmed by empirical evidence. The sighting of the first black swan might have been an interesting surprise for a few ornithologists (and others extremely concerned with the coloring of birds), but that is not where the significance of the story lies. It illustrates a severe limitation to our learning from observations or experience and the fragility of our knowledge. One single observation can invalidate a general statement derived from millennia of confirmatory sightings of millions of white swans. All you need is one single (and, I am told, quite ugly) black bird.*

I push one step beyond this philosophical-logical question into an empirical reality, and one that has obsessed me since childhood. What we call here a Black Swan (and capitalize it) is an event with the following three attributes.

First, it is an outlier, as it lies outside the realm of regular expectations, because nothing in the past can convincingly point to its possibility. Second, it carries an extreme impact. Third, in spite of its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable.

I stop and summarize the triplet: rarity, extreme impact, and retrospective (though not prospective) predictability.* A small number of Black Swans explain almost everything in our world, from the success of ideas and religions, to the dynamics of historical events, to elements of our own personal lives. Ever since we left the Pleistocene, some ten millennia ago, the effect of these Black Swans has been increasing. It started accelerating during the industrial revolution, as the world started getting more complicated, while ordinary events, the ones we study and discuss and try to predict from reading the newspapers, have become increasingly inconsequential.

Just imagine how little your understanding of the world on the eve of the events of 1914 would have helped you guess what was to happen next. (Don’t cheat by using the explanations drilled into your cranium by your dull high school teacher). How about the rise of Hitler and the subsequent war? How about the precipitous demise of the Soviet bloc? How about the rise of Islamic fundamentalism? How about the spread of the Internet? How about the market crash of 1987 (and the more unexpected recovery)? Fads, epidemics, fashion, ideas, the emergence of art genres and schools. All follow these Black Swan dynamics. Literally, just about everything of significance around you might qualify.

This combination of low predictability and large impact makes the Black Swan a great puzzle; but that is not yet the core concern of this book. Add to this phenomenon the fact that we tend to act as if it does not exist! I don’t mean just you, your cousin Joey, and me, but almost all “social scientists” who, for over a century, have operated under the false belief that their tools could measure uncertainty. For the applications of the sciences of uncertainty to real-world problems has had ridiculous effects; I have been privileged to see it in finance and economics. Go ask your portfolio manager for his definition of “risk,” and odds are that he will supply you with a measure that excludes the possibility of the Black Swan–hence one that has no better predictive value for assessing the total risks than astrology (we will see how they dress up the intellectual fraud with mathematics). This problem is endemic in social matters.

The central idea of this book concerns our blindness with respect to randomness, particularly the large deviations: Why do we, scientists or nonscientists, hotshots or regular Joes, tend to see the pennies instead of the dollars? Why do we keep focusing on the minutiae, not the possible significant large events, in spite of the obvious evidence of their huge influence? And, if you follow my argument, why does reading the newspaper actually decrease your knowledge of the world?

It is easy to see that life is the cumulative effect of a handful of significant shocks. It is not so hard to identify the role of Black Swans, from your armchair (or bar stool). Go through the following exercise. Look into your own existence. Count the significant events, the technological changes, and the inventions that have taken place in our environment since you were born and compare them to what was expected before their advent. How many of them came on a schedule? Look into your own personal life, to your choice of profession, say, or meeting your mate, your exile from your country of origin, the betrayals you faced, your sudden enrichment or impoverishment. How often did these things occur according to plan?

* The spread of camera cell phones has afforded me a large collection of pictures of black swans sent by traveling readers. Last Christmas I also got a case of Black Swan Wine (not my favorite), a videotape (I don’t watch videos), and two books. I prefer the pictures.

* The highly expected not happening is also a Black Swan. Note that, by symmetry the occurrence of a highly improbable event is the equivalent of the nonoccurrence of a highly probable one.

What You Do Not Know

Black Swan logic makes what you don’t know far more relevant than what you do know. Consider that many Black Swans can be caused and exacerbated by their being unexpected.

Think of the terrorist attack of September 11, 2001: had the risk been reasonably conceivable on September 10, it would not have happened. If such a possibility were deemed worthy of attention, fighter planes would have circled the sky above the twin towers, airplanes would have had locked bulletproof doors, and the attack would not have taken place, period. Something else might have taken place. What? I don’t know. Isn’t it strange to see an event happening precisely because it was not supposed to happen? What kind of defense do we have against that? Whatever you come to know (that New York is an easy terrorist target, for instance) may become inconsequential if your enemy knows that you know it. It may be odd to realize that, in such a strategic game, what you know can be truly inconsequential.

This extends to all businesses. Think about the “secret recipe” to making a killing in the restaurant business. If it were known and obvious then someone next door would have already come up with the idea and it would have become generic. The next killing in the restaurant industry needs to be an idea that is not easily conceived of by the current population of restaurateurs. It has to be at some distance from expectations. The more unexpected the success of such a venture, the smaller the number of competitors, and the more successful the entrepreneur who implements the idea. The same applies to the shoe and the book businesses–or any kind of entrepreneurship. The same applies to scientific theories–nobody has interest in listening to trivialities. The payoff of a human venture is, in general, inversely proportional to what it is expected to be.

Consider the Pacific tsunami of December 2004. Had it been expected, it would not have caused the damage it did–the areas affected would have been less populated, an early warning system would have been put in place. What you know cannot really hurt you.

Experts and “Empty Suits”

The inability to predict outliers implies the inability to predict the course of history, given the share of these events in the dynamics of events.

But we act as though we are able to predict historical events, or, even wore, as if we are able to change the course of history. We produce thirty year projections of social security deficits and oil prices without realizing that we cannot even predict these for next summer–our cumulative prediction errors for political and economic events are so monstrous that every time I look at the empirical record I have to pinch myself to verify that I am not dreaming. What is surprising is not the magnitude of our forecast errors, but our absence of awareness of it. This is all the more worrisome when we engage in deadly conflicts: wars are fundamentally unpredictable (and we do not know it). Owing to this misunderstanding of the casual chains between policy and actions, we can easily trigger Black Swans thanks to aggressive ignorance–like a child playing with a chemistry kit.

Our inability to predict in environments subjected to the Black Swan, coupled with a general lack of the awareness of this state of affairs, means that certain professionals, while believing they are experts, are in fact not. based on their empirical record, they do not know more about their subject matter than the general population, but they are much better at narrating–or, worse, at smoking you with complicated mathematical models. They are also more likely to wear a tie.

Black Swans being unpredictable, we need to adjust to their existence (rather than naïvely try to predict them). There are so many things we can do if we focus on anti knowledge, or what we do not know. Among many other benefits, you can set yourself up to collect serendipitous Black Swans by maximizing your exposure to them.

Learning to Learn

Another related human impediment comes from excessive focus on what we do know: we tend to learn the precise, not the general.

What did people learn from the 9/11 episode? Did they learn that some events, owing to their dynamics, stand largely outside the realm of the predictable? No. Did they learn the built-in defect of conventional wisdom? No. What did they figure out? They learned precise rules for avoiding Islamic prototerrorists and tall buildings. Many keep reminding me that it is important for us to be practical and take tangible steps rather than to “theorize” about knowledge. The story of the Maginot Line shows how we are conditioned to be specific. The French, after the Great War, built a wall along the previous German invasion route to prevent reinvasion– Hitler just (almost) effortlessly went around it. The French had been excellent students of history; they just learned with too much precision. They were too practical and exceedingly focused for their own safety.

We do not spontaneously learn that we don’t learn that we don’t learn. The problem lies in the structure of our minds: we don’t learn rules, just facts, and only facts. Metarules (such as the rule that we have a tendency to not learn rules) we don’t seem to be good at getting. We scorn the abstract; we scorn it with passion.

Why? It is necessary here, as it is my agenda in the rest of this book, both to stand conventional wisdom on its head and to show how inapplicable it is to our modern, complex, and increasingly recursive environment.*

But there is a deeper question: What are our minds made for? It looks as if we have the wrong user’s manual. Our minds do not seem made to think and introspect; if they were, things would be easier for us today, but then we would not be here today and I would not have been here to talk about it–my counterfactual, introspective, and hard-thinking ancestor would have been eaten by a tiger while his nonthinking, but faster-reacting cousin would have run for cover. Consider that thinking is time-consuming and generally a great waste of energy, that our predecessors spent more than a hundred million years as nonthinking mammals and that in the blip in our history during which we have used our brain we have used it on subjects too peripheral to matter. Evidence shows that we do much less thinking than we believe we do—except, of course, when we think about it.

* Recursive here means that the world in which we live has an increasing number of feedback loops, causing events to be the cause of more events (say, people buy a book because other people bought it), thus generating snowballs and arbitrary and unpredictable planet-wide winner-take-all effects. We live in an environment where information flows too rapidly, accelerating such epidemics. Likewise, events can happen because they are not supposed to happen. (Our intuitions are made for an environment with simpler causes and effects and slowly moving information.) This type of randomness did not prevail during the Pleistocene.

A NEW KIND OF INGRATITUDE

It is quite saddening to think of those people who have been mistreated by history. There were the poètes maudits, like Edgar Allan Poe or Arthur Rimbaud, scorned by society and later worshipped and force-fed to schoolchildren. (There are even schools named after high school dropouts). Alas, this recognition came a little too late for the poet to get a serotonin kick out of it, or to prop up his romantic life on earth. But there are even more mistreated heroes–the very sad category of those who we do not know were heroes, who saved our lives, who helped us avoid disasters. They left no traces and did not even know that they were making a contribution. We remember the martyrs who died for a cause that we knew about, never those no less effective in their contribution but whose cause we were never aware–precisely because they were successful. Our ingratitude towards the poètes maudits fades completely in front of this other type of thanklessness. This is a far more vicious kind of ingratitude: the feeling of uselessness on the part of the silent hero. I will illustrate with the following thought experiment.

Assume that a legislator with courage, influence, intellect, vision, and perseverance manages to enact a law that goes into universal effect and employment on September 10, 2001; it imposes the continuously locked bulletproof doors in every cockpit (at high costs to the struggling airlines)– just in case terrorists decide to use planes to attack the World Trade
Center in New York City. I know this is lunacy, but it is just a thought experiment (I am aware that there may be no such thing as a legislator with intellect, courage, vision, and perseverance; this is the point of the thought experiment). The legislation is not a popular measure among the airline personnel, as it complicates their lives. But it would certainly have prevented 9/11.

The person who imposed locks on cockpit doors gets no statues in public squares, not so much as a quick mention of his contribution in his obituary. “Joe Smith, who helped avoid the disaster of 9/11, died of complications of liver disease.” Seeing how superfluous his measure was, and how it squandered resources, the public, with great help from airline pilots, might well boot him out of office. Vox clamantis in deserto. He will retire depressed, with a great sense of failure. He will die with the impression of having done nothing useful. I wish I could go attend his funeral, but, reader, I can’t find him. And yet, recognition can be quite a pump. Believe me, even those who genuinely claim that they do not believe in recognition, and that they separate labor from the fruits of labor, actually get a serotonin kick from it. See how the silent hero is rewarded: even his own hormonal system will conspire to offer no reward.

Now consider again the events of 9/11. In their aftermath, who got the recognition? Those you saw in the media, on television performing heroic acts, and those whom you saw trying to give you the impression that they were performing heroic acts. The latter category includes someone like the New York Stock Exchange Chairman Richard Grasso, who “saved the stock exchange” and received a huge bonus for his contribution (the equivalent of several thousand average salaries). All he had to do was be there to ring the opening bell on television–the television that, we will see, is the carrier of unfairness and a major cause of Black Swan blindness.

Who gets rewarded, the central banker who avoids a recession or the one who comes to “correct” his predecessors’ faults and happens to be there during some economic recovery? Who is more valuable, the politician who avoids a war or the one who starts a new one (and is lucky enough to win)?

It is the same logic reversal we saw earlier with the value of what we don’t know; everybody knows that you need more prevention than treatment, but few reward acts of prevention. We glorify those who left their names in history books at the expense of those contributors about whom our books are silent. We humans are not just a superficial race (this may be curable to some extent); we are a very unfair one.

LIFE IS VERY UNUSUAL

This is a book about uncertainty; to this author, the rare event equals uncertainty. This may seem like a strong statement–that we need to principally study the rare and extreme events in order to figure out common ones–but I will make myself clear as follows. There are two possible ways to approach phenomena. The first is to rule out the extraordinary and focus on the “normal.” The examiner leaves aside “outliers” and studies ordinary cases. The second approach is to consider that in order to understand a phenomenon, one needs to first consider the extremes–particularly if, like the Black Swan, they carry an extraordinary cumulative effect.

I don’t particularly care about the usual. If you want to get an idea of a friend’s temperament, ethics, and personal elegance, you need to look at him under the tests of severe circumstances, not under the regular rosy glow of daily life. Can you assess the danger a criminal poses by examining only what he does on an ordinary day? Can we understand health without considering wild diseases and epidemics? Indeed the normal is often irrelevant.
Almost everything in social life is produced by rare but consequential shocks and jumps; all the while almost everything studied about social life focuses on the “normal,” particularly with “bell curve” methods of inference that tell you close to nothing. Why? Because the bell curve ignores large deviations, cannot handle them, yet makes us confident that we have tamed uncertainty. Its nickname in this book is GIF, Great Intellectual Fraud.

PLATO AND THE NERD

At the start of the Jewish revolt in the first century of our era, much of the Jews’ anger was caused by the Romans’ insistence on putting a statue of Caligula in their temple in Jerusalem in exchange for placing a statue of the Jewish god Yahweh in Roman temples. The Romans did not realize that what the Jews (and the subsequent Levantine monotheists) meant by god was abstract, all embracing, and had nothing to do with the anthropomorphic, too human representation that Romans had in mind when they said deus. Critically, the Jewish god did not lend himself to symbolic representation. Likewise, what many people commoditize and label as “unknown,” “improbable,” or “uncertain” is not the same thing to me; it is not a concrete and precise category of knowledge, a nerdified field, but its opposite; it is the lack (and limitations) of knowledge. It is the exact contrary of knowledge; one should learn to avoid using terms made for knowledge to describe its opposite.

What I call Platonicity, after the ideas (and personality) of the philosopher Plato, is our tendency to focus on pure and well-defined “forms,” whether objects, like triangles, or social notions, like utopias (societies built according to some blueprint of what “makes sense”), even nationalities. When these ideas and crisp constructs inhabit our minds, we privilege them over other less elegant objects, those with messier and less tractable structures (an idea that I will elaborate progressively throughout this book).

Platonicity is what makes us think that we understand more than we actually do. But this does not happen everywhere. I am not saying that Platonic forms don’t exist. Models and constructions are not always wrong; they are wrong only in some specific places. The difficulty is that a) you do not know where beforehand (only after the fact), and b) the mistakes can lead to severe consequences. These models are like potentially helpful medicines that carry random but very severe side effects.

The Platonic fold is the explosive boundary where the Platonic mindset enters in contact with the messy reality, where the gap between what you know and what you think you know becomes dangerously wide. It is here that the Black Swan is produced.

TOO DULL TO WRITE ABOUT

It was said that the artistic filmmaker Luchino Visconti made sure that when actors pointed at a closed box meant to contain jewels, there were real jewels inside. It could be an effective way to make actors live their part. I think that Visconti’s gesture may also come out of a plain sense of aesthetics and a desire for authenticity–somehow it may not feel right to fool the viewer.

This is an essay expressing a primary idea; it is neither the recycling nor repackaging of other people’s thoughts. An essay is an impulsive meditation, not science reporting. I apologize if I skip a few obvious topics in this book out of the conviction that what is too dull for me to write about might be too dull for the reader to read. (Also, to avoid dullness may help to filter out the nonessential).

Talk is cheap. Someone who took too many philosophy classes in college (or perhaps not enough) might object that the sighting of a Black Swan does not invalidate the theory that all swans are white since such a black bird is not technically a swan since whiteness to him may be the essential property of a swan. Indeed those who read too much Wittgenstein (and writings about comments about Wittgenstein) may be under the impression that language problems are important. They may certainly be important to attain prominence in philosophy departments, but they are something we, practitioners and decision makers in the real world, leave for the weekend. As I explain in the chapter called “The Uncertainty of the Phony,” for all of their intellectual appeal, these niceties have no serious implications Monday to Friday as opposed to more substantial (but neglected) matters. People in the classroom, not having faced many true situations of decision making under uncertainty, do not realize what is important and what is not–even those who are scholars of uncertainty (or particularly those who are scholars of uncertainty). What I call the practice of uncertainty can be piracy, commodity speculation, professional gambling, working in some branches of the Mafia, or just plain serial entrepreneurship. Thus I rail against “sterile skepticism,” the kind we can do nothing about, and against the exceedingly theoretical language problems that have made much of modern philosophy largely irrelevant to what is derisively called the “general public.” (In the past, for better or worse, those rare philosophers and thinkers who were not self-standing depended on a patron’s support. Today academics in abstract disciplines depend on one another’s opinion, without external checks, with the severe occasional pathological result of turning their pursuits into insular prowess-showing contests. Whatever the shortcomings of the old system, at least it enforced some standard of relevance.)

The philosopher Edna Ullmann-Margalit detected an inconsistency in this book and asked me to justify the use of the precise metaphor of a Black Swan to describe the unknown, the abstract, and imprecise uncertain– white ravens, pink elephants, or evaporating denizens of a remote planet orbiting Tau Ceti. Indeed, she caught me red handed. There is a contradiction; this book is a story, and I prefer to use stories and vignettes to illustrate our gullibility about stories and our preference for the dangerous compression of narratives.
You need a story to displace a story. Metaphors and stories are far more potent (alas) than ideas; they are also easier to remember and more fun to read. If I have to go after what I call the narrative disciplines, my best tool is a narrative.

Ideas come and go, stories stay.

THE BOTTOM LINE

The beast in this book is not just the bell curve and the self-deceiving statistician,
nor the Platonified scholar who needs theories to fool himself with. It is the drive to “focus” on what makes sense to us. Living on our planet, today, requires a lot more imagination than we are made to have. We lack imagination and repress it in others.

Note that I am not relying in this book on the beastly method of collecting selective “corroborating evidence.” For reasons I explain in Chapter
5, I call this overload of examples naïve empiricism–successions of anecdotes selected to fit a story do not constitute evidence. Anyone looking for confirmation will find enough of it to deceive himself–and no doubt his peers.* The Black Swan idea is based on the structure of randomness in empirical reality.

To summarize: in this (personal) essay, I stick my neck out and make a claim, against many of our habits of thought, that our world is dominated by the extreme, the unknown, and the very improbable (improbable according our current knowledge)–and all the while we spend our time engaged in small talk, focusing on the known, and the repeated. This implies the need to use the extreme event as a starting point and not treat it as an exception to be pushed under the rug. I also make the bolder (and more annoying) claim that in spite of our progress and the growth in knowledge, or perhaps because of such progress and growth, the future will be increasingly less predictable, while both human nature and social “science” seem to conspire to hide the idea from us.

* It is also naïve empiricism to provide, in support of some argument, series of eloquent confirmatory quotes by dead authorities. By searching, you can always find someone who made a well-sounding statement that confirms your point of view–and, on every topic, it is possible to find another dead thinker who said the exact opposite. Almost all of my non—Yogi Berra quotes are from people I disagree with.

Chapters Map

The sequence of this book follows a simple logic; it flows from what can be labeled purely literary (in subject and treatment) to what can be deemed entirely scientific (in subject, though not in treatment). Psychology will be mostly present in Part One and in the early part of Part Two; business and natural science will be dealt with mostly in the second half of Part
Two and in Part Three. Part One, “Umberto Eco’s Antilibrary,” is mostly about how we perceive historical and current events and what distortions are present in such perception. Part Two, “We Just Can’t Predict,” is about our errors in dealing with the future and the unadvertised limitations of some “sciences”–and what to do about these limitations. Part Three, “Those Gray Swans of Extremistan,” goes deeper into the topic of extreme events, explains how the bell curve (that great intellectual fraud) is generated, and reviews the ideas in the natural and social sciences loosely lumped under the label “complexity.” Part Four, “The End,” will be very short.

I derived an unexpected amount of enjoyment writing this book–in fact,
it just wrote itself–and I hope that the reader will experience the same. I
confess that I got hooked on this withdrawal into pure ideas after the constraints of an active and transactional life. After this book is published, my aim is to spend time away from the clutter of public activities in order to think about my philosophical-scientific idea in total tranquillity.

Read More Show Less

Customer Reviews

Average Rating 3.5
( 234 )
Rating Distribution

5 Star

(80)

4 Star

(51)

3 Star

(55)

2 Star

(31)

1 Star

(17)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously
See All Sort by: Showing 1 – 20 of 237 Customer Reviews
  • Posted March 26, 2010

    The Black Swan, by Nassim Nicholas Taleb

    Just as the negative space gives form to the objective in a work of art, so the unknown gives relevance to knowledge. In The Black Swan, Taleb shows that all human knowledge is but a collection of crude marks on a vast canvas of ignorance. We know much less than we think we know, and understand even that poorly. Further, our history, both personal and collective, is governed by events that we did not predict, could not have predicted, and really do not comprehend.

    Taleb defines the black swan concept as an event with three characteristics: unpredictability, extreme impact, and (unfortunately) the power to inspire us to contrive ex post facto explanations. For much of history conventional wisdom held that all swans were white. When Europeans colonized Australia and found black swans, however, an entire body of knowledge was upended. That is a key concept. Some events out there will obliterate all prior understanding. These events reside in a province Taleb dubs "Extremistan."

    Despite our blindness to high-impact black swan events, we always go back and contrive explanations that would have predicted those events. Narrative fallacy is a term the author uses to describe how we fit facts to a preconceived story. After the dust settles, we tell ourselves that we are smarter now, and wait for the next Black Swan, drunk with the false belief that we understand the risk and are somehow protected from it.

    Taleb describes several other mental traps. Epistemic arrogance is a term he uses to tell us that we are not nearly as smart as we think, and confirmation error is the tendency to look for instances that confirm our beliefs. It is our nature to connect random facts, weave a story, and then force fit this crude mental model onto physical reality. We do this not only to make future predictions, but also to interpret the past. Causal stories we contrive to make historic events appear deterministic are in fact just a cherry picking of facts to fit a story. We can't even predict history well. The author cautions us to be very wary of any human explanations: he makes a strong argument that we should avoid making strong arguments.

    Despite the shortcomings of our primitive mental processors, the situation is not entirely as hopeless. Though we can know little of the events that most impact our lives, we can profit from the delusion of others. Financial markets are driven by a great many people that underestimate the impact and likelihood of Black Swan events. We can profit by betting on long shots, doing it a lot, but placing only small bets. That way, the losses will be bounded and you never suffer from catastrophic black swan events. Taleb cashed in this strategy, and retired to pursue his passion for philosophy.

    When someone writes with intensity and honesty, the reader invariably gets a sense of the writer's personality. So it is with Taleb. He is a brilliant and unconventional thinker with little respect for established and institutionalized knowledge. Platonified (compartmentalized) thinking incenses him and he despises the high priests of academia - the ministers of what Robert Pirsig called "The Church of Reason". Taleb disdains their sacraments (especially the Gaussian curve) and their holiest institutions (e.g. the Nobel Prize.) I went through most of the book believing the writer a man of very strong opinions, only to realize at the end that I was, of course, wrong. Nassim Nicholas Taleb is a man of extreme opinions.

    15 out of 16 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted September 4, 2007

    Taleb 's Message... Keep Your Eyes Wide Open!

    Easy enough to understand but rarely used in practice... Taleb's overwhelming point in this entertaining book is simple... 'Keep your eyes wide open'. Through his anecdotal reasoning Taleb illustrates case after case and historical reference after historical reference with a unique narrative style that is slightly fragmented yet nearly as entertaining as what you might expect from a work of fiction often leaving the reader with a discernable smile while mumbling to himself: 'Hmmm... You know this guy's got a point!¿ With an impressive understanding of the human social condition and our psychological tendencies, Taleb lays good claim to how we fail to anticipate, react to and make sense of the random events that have the greatest impact on our lives. In the end Taleb offers no specific solution or process by which one can profit or gain from the unexpected... however, the reader invariably learns the value of 'skepticism' and can easily see how this primarily philosophical dogma can be applicable to real life and of course, the financial markets! The Black Swan does more to re-align one's perspective than anything else, but few books do as good a job in this regard.

    8 out of 9 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted October 15, 2007

    Nice hook, not much else.

    Taleb's Black Swan metaphor is a clever one. It fits his central concept--the highly improbable and its impact. This book would make a nice 15 page essay the rest is autobiographical filler, snide comments about various 'established' cultures (e.g., academe) and absurd attacks on established statistical concepts.

    7 out of 13 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted August 5, 2007

    'Never judge a book by its cover...'

    I could hardly make myself finish the book. Mr. Taleb devotes thousands of words to weaving together quip anecdotal musings that struggle to support his loosely defined thesis statements. Using a short, choppy prose style we are forced to review Mr. Taleb¿s observations of ¿nonlinearities¿ that seem to better highlight the authors worldly travels and successful friends than offer new insights. The popularity of this book simply illustrates our societal weakness for catchy titles and to ¿listen¿ to anyone who speaks authoritatively about the unknown.

    7 out of 11 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted May 1, 2007

    a reviewer

    According to critic Harold Bloom, Hamlet's predicament is not 'that he thinks too much' but rather that 'he thinks too well,' being ultimately 'unable to rest in illusions of any kind.' The same could be said for philosopher, essayist and trader Nassim Nicholas Taleb, who finds something rotten in misguided yet supremely confident investment gurus, traders, hedge fund managers, Wall Street bankers, M.B.A.s, CEOs, Nobel-winning economists and others who claim that they can predict the future and explain the past. Like everyone else, says Taleb, these so-called 'experts' fail to appreciate 'black swans': highly consequential but unlikely events that render predictions and standard explanations worse than worthless. Taleb's style is personal and literary, but his heterodox insights are rigorous (if sometimes jolted by authorial filigree). This combination makes for a thrilling, disturbing, contentious and unforgettable book on chance and randomness. While Taleb offers strong medicine some readers may find too bitter at times, we prescribe it to anyone who wants a powerful inoculation against gullibility.

    6 out of 7 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted April 18, 2010

    Wandering, meandering, boring

    This is one of the worst audio books I have ever listened to. My wife agrees. The thesis is that it is only the things that we don't know about or can't anticipate that matter. The proof points given are 9/11 and the rise of Google. However, no proof is provided. Neither of these examples occurred out of nowhere - as the authors seem to think. For instance, all the elements of 9/11 were anticipated - the WTC was attacked previously, terror experts knew that attack with airplanes was possible - the failure was in the synthesis of the data. Same with Google - the importance of search had been established, and the importance of e-commerce: Google brought it all together.

    At any rate, these are just examples of what is not covered in this book while the authors ramble all over the place and don't provide a shred of evidence for their thesis.

    So, this is a work of fiction sold as if it reveals some type of scientific breakthrough.

    3 out of 5 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted July 25, 2011

    Did Not Enjoy

    Author took way to long to make the (obvious) points: 1.People don't properly assess/quantify risk; 2. A low probability event doesn't mean that it cannot happen.

    2 out of 3 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted September 29, 2008

    Not Blink

    The book would make a great 3-page magazine article. I give NNT credit for the brilliant premise. I also give him the credit he deserves for predicting the collapse of the banking industry on page 225. However, the rest of the book is a rambling series of examples that do little or nothing to support his main topic. Malcolm Gladwell's book, Blink has a series of rambling stories but they all support his main theme. I felt like this book was 3 pages worth of brilliance and 297 pages of nonsensical filler.

    2 out of 6 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted July 10, 2007

    A reviewer

    I have read this book carefully. Reading it, I must admit, was a waste of my time, let alone my money. Mr. Taleb, in this book, indulged himself in an exercise of futility. Everyone knows that events in life (including life itself) are unpredictable. But to surrender to chance and make-believe that the sun may not rise tomorrow is really naive and ridiculous. As this book is now on the bestsellers' list, Mr. Taleb was successful in creating his own little black swan, thanks to the power of advertising.

    2 out of 6 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted May 29, 2007

    How did it get published?

    Honestly I have no idea how this book was published. It is clear that the author does not understand probability theory. We all know that normal distributions can not be used to describe all the possible phenomena in nature and society. But the author uses this argument to discard probability theory. The book is full of incomplete stories and ideas that hardly make sense. Don't bother to buy or read. There were other negative comments of this book but apparently were deleted. I hope they don't delete this one.

    2 out of 6 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Posted May 8, 2010

    A Great Work

    This book simply challenges our presuppositions regarding our ability to understand the world we live in. It seems that many of the long-held and cherished statistical dogmas that we depend on to interpret our past, present and future are simply and demonstrably false. Sometimes counterintuitive, frequently funny, always engaging and highly addictive, this book will prove to be one of the important works of the early 21st Century.

    1 out of 1 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Posted February 21, 2010

    I Also Recommend:

    Phenomenal -- A must read!! The title says it all. Just think of the rarity of a Black Swan.

    This book was mentioned in a book I was reading by Malcolm Gladwell. It took me three or four trips to the bookstore before picking up a copy, but when I did I was truly impressed. This book will make you think about the world around you especially statistics, why some people are placed in a higher position than others, your views on improbably events occurring and so much more. I loved the idea that it is through mistakes that great discoveries were made and was totally impressed with the 10,000 rule. This made so much sense that am sharing it with everyone I know. How much time does anyone spend doing an activity until they are considered an expert? Read this book and you will find out. Some of the information I was familiar with but never had I read it in one conceptual context. Another area that I found interesting was the "memes" which is when an idea is passed and changed. If anyone has played 'telephone' they understand. Many of the thoughts/ideas that we think are cut in stone are actually ideas that have been distorted. If you like to read a book that makes you think about life and the way you view ideas, customs, thoughts and the world this is the book for you. It will challenge you and Taleb makes you question your own understanding of the world, the principles that you follow and the life that you live.

    1 out of 2 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Posted February 20, 2010

    I can't believe this is a best seller - the jokes on us who bought it.

    What a grind! "Unexpected life-changing things happen that can't be predicted with a bell curve." There - Now you don't have to waste the 10 or more hours it takes to plow thru this life-sucking experience. I can't believe the fawning reviews this book gets. Like it was an expensive wine with all the upscale adjectives. I also can't believe the dislike of the 1 star reviews which are telling a truth that you may not like to hear- that the blank canvas that you're looking at isn't really art at all.

    If you want specifics, I would use the key words, disjointed, long-winded, no-sequitur, unscientific, and axe-grinding.

    1 out of 3 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Posted February 9, 2010

    Genius.

    I love this book; it was recommended to me by my b-school prof. Very briefly, it gives the insight that observing an event once does not predict it will occur again in the future. A great read.

    1 out of 2 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted July 18, 2009

    Interesting Concept...

    The book had an interesting concept but was a bit confusing and too general for the average reader. There are many theories but few practical examples about the real world. This book is mostly for professors or researchers.

    1 out of 3 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted December 11, 2007

    A thought altering read

    The kind of book that made me gaze away every few pages to ponder the impact on how to apply this approach to my job and personal philosophy.

    1 out of 2 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted August 10, 2007

    A reviewer

    its fun and entertaining. some don't understand it but that's fine. it is for people with an open mind.

    1 out of 2 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted July 29, 2014

    This book is way too long for what it actually has to say. I fo

    This book is way too long for what it actually has to say. I found it rather annoying. There are better books out there.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted July 25, 2014

    Was this review helpful? Yes  No   Report this review
  • Posted April 9, 2013

    In his book, The Black Swan: The Impact of the Highly Improbable

    In his book, The Black Swan: The Impact of the Highly Improbable, Dr. Nassim Nicholas Taleb illustrates the truly unpredictable nature of black swan events. He shows how the limits of human imagination and available information hide the possibility of these events from us regardless of the retrospective assertions made by `the experts.' Dr. Taleb goes on to reveal micro-level black swans that influence the day-to-day success and failure of companies and individual employees.

    The Black Swan brings to the forefront the reality of unpredictable events. Through his proof of their existence, Dr. Taleb creates a mandate for executives and managers to examine and prepare their organization to deal with black swan events at the corporate and employee level.

    The one shortcoming of Dr. Taleb's book is the absence of a set of guiding protocols or principles for effectively dealing with black swan events once they occur. This remains as an outstanding research and development project for the reader with no initial direction provided.

    I like The Black Swan for its exposure of unpredictable events and the inferred call to action to prepare one's organization to deal with these catastrophes commensurate with the organization's overall risk profile; making The Black Swan a StrategyDriven recommended read.

    All the Best,
    Nathan Ives
    StrategyDriven Principal

    Was this review helpful? Yes  No   Report this review
See All Sort by: Showing 1 – 20 of 237 Customer Reviews

If you find inappropriate content, please report it to Barnes & Noble
Why is this product inappropriate?
Comments (optional)