Review: Antifragile: Things That Gain from Disorder

Antifragile: Things That Gain from Disorder by Nassim Nicholas Taleb
My rating: 4 of 5 stars

It is a book that is probably being either loved or hated - (over)intellectual, controversial, presenting extremely broad view on matters.

Taleb introduces the concept of Antifragile (= adaptive / agile) which, according to him, defines the reason why some societies or companies fail and some win, why some people get successful and rich, while others don't, why some concepts survive for millennia, while others die away after being a hype for a while.

Rigidity, layers of rules, overzealous care - all make organisms, children, economies, corporations, markets and states fragile. "A complex system does not require complicated systems and regulations and intricate policies. The simpler, the better. Complications lead to multiplicative chains of unanticipated effects."

Having been a financial markets trader specializing on financial options, Taleb elegantly introduces theory of optionality into virtually every corner of life. The more options we have, the more antifragile we are. Venture capitalists have utilised this concept for decades: they don't need to pick too many winners - as long as they have many (good) options, they only need one or two winners to get rich.

But there are so many more ideas and concepts that this book discusses.

For example, Black Swans - events of large magnitude that we cannot forecast nor compute. Events that we don't know the potential existence of - until they happen. How to be prepared for such events? Drop corporate planning or risk calculating - says Mr. Taleb - acquire optionality to make you antifragile against such events.

Or undercompensation of stressors - an organism, a company, a team not receiving any stressors for a while - becomes complacent, stops innovating, stops "being hungry, being foolish" in Steve Jobs' famous words. Therefore, Taleb praises market economy and entrepreneurship - many try, most fail, while some succeed and bring humanity forward (an analogy with natural selection and genetics).

Or take a value of procrastination. "It’s much easier to sell “Look what I did for you” than “Look what I avoided for you.".... The doctor who refrains from operating on a back (a very expensive surgery), instead giving it a chance to heal itself, will not be rewarded and judged as favorably as the doctor who makes the surgery look indispensable, then brings relief to the patient while exposing him to operating risks, while accruing great financial rewards to himself... The corporate manager who avoids a loss will not often be rewarded."

On importance of having skin in the game: "It is profoundly unethical to talk without doing, without exposure to harm, without having one’s skin in the game, without having something at risk." Taleb brings examples of what the French call “the caviar left” or what Anglo-Saxons call champagne socialists - people who advocate socialism, sometimes even communism, while overtly leading a lavish lifestyle, often financed by inheritance—not realizing the contradiction that they want others to avoid just such a lifestyle. The same goes for the pension fund managers, not having downside.

Taleb is deliberately provocative, sometimes to the point of being simplistic in his attacks against economists, academia, healthcare professionals - there were too many of those to my taste. The book is also deliberately not structured around clearly focused chapters - like good old philosophical books, it is rather read as an essay with various intervening (and repeating) thoughts - not the easiest read at times.

All in all, I found this a very rewarding read - many ideas that challenge regular way of thinking in areas of leadership, corporate management, parenthood, democracy participation.

View all my reviews