It sounds more regal when you say "structure the trades to reduce your exposure to downside risk while increasing your exposure to upside from unanticipated random events" though.
It sounds more regal when you say "structure the trades to reduce your exposure to downside risk while increasing your exposure to upside from unanticipated random events" though.
Given Taleb's understanding and belief in randomness of the market, I see him as "creating his own lotteries" using rather sophisticated techniques that have paid off very well. The cost of entry is small and the potential rewards are high but he loses regularly and consistently and says he was grateful to be in a position where he could execute such a strategy without being looked down upon by his superiors (from Fooled By Randomness).
That is why Wall Street is #1.
Then you start another Wall Street firm. Ben will chip in the funding for basically free if you are well connected.
(This is also why Wall Street pays out all profit to real people, instead of keeping it within the firm.)
More precisely, it's akin to buying mispriced lottery tickets with a high positive expected payoff that hasn't been priced in yet.