Philosophy Archives

Barbell Strategy: The Safest Way for Maximum Profits

What is the barbell strategy? What is a barbell investing approach? How can you adopt the barbell strategy to mitigate risk in investing and in life? The “barbell strategy” is an approach designed to minimize the pain of a negative event while, potentially, reaping the benefits of a positive event. The barbell strategy is commonly used in investing, but it’s also applicable to life more generally. We’ll cover the nature of the barbell strategy and other strategies for mitigating risks.

Origins of Nassim Nicholas Taleb’s Black Swan Obsession

Who is Nassim Nicholas Taleb? How did he develop his popular “black swan” theory? The Black Swan is the second book in former options trader Nassim Nicholas Taleb’s five-volume series on uncertainty. This book analyzes so-called “Black Swans”—extremely unpredictable events that have massive impacts on human society. We’ll explore how Nassim Nicholas Taleb became obsessed with probability (or, more accurately, improbability) and how he developed his theory of black swans.

Butterfly Effect Theory Explained: Impact of Small Acts

What is the butterfly effect theory? How is it related to the idea of nonlinearities? How does it explain why we make bad predictions? The butterfly effect theory is the idea that a small change in a nonlinear system can have huge effects in the larger system. This idea was proposed by an MIT meteorologist, who discovered that an infinitesimal change in input parameters can drastically change weather models. We’ll cover what the butterfly effect theory is and how small changes can have large effects.

Why Planning Is Important, Even in an Uncertain World

In an unpredictable world, why plan? Is there a way to prepare for unexpected events, even if we can’t exactly plan for them? Why is planning important? We’ll look at the concept of Nassim Nicholas Taleb’s “black swan” and explore why planning is important, even if the world is unpredictable.

Freedom to Live: The Hero’s Journey, Stage 17 (Explained)

What is stage 17 of Joseph Campbell’s hero’s journey? What is the significance of the “freedom to live”? Freedom to live is the stage of the hero’s journey in which the hero has found a balance between his internal and external worlds and he no longer fears death. Freedom to live is stage 17, the last stage, of Joseph Campbell’s hero’s journey, from The Hero with a Thousand Faces. We’ll cover what the freedom to live entails and look at examples of the freedom-to-live stage of the hero’s journey.

No One Can Predict the Future: Here’s Why

No one can predict the future. But why? Why are some situations and events more predictable than others? We’ll cover the nature of predictability according to Nassim Nicholas Taleb and look at why it is that no one can predict the future.

Black Swan Fallacy: Why You See What You Want to See

What is the black swan fallacy? How is it most famous today? The black swan fallacy is the tendency of people to ignore evidence that contradicts their beliefs and assumptions. This fallacy can also refer to the tendency to believe that things they’ve never witnessed don’t exist. We’ll cover the roots of the black swan fallacy and look at modern-day, black-swan-fallacy examples.

Crossing the Threshold: The Hero’s Journey, Stage 4 (Explained)

What is stage 4 of Joseph Campbell’s hero’s journey? What is “crossing the threshold”? Crossing the threshold is the stage at which the hero comes to a point where he is further away from the world of comfort and familiarity than he has ever been before. Crossing the threshold is stage 4 of Joseph Campbell’s hero’s journey, from The Hero with a Thousand Faces. We’ll cover what crossing the threshold entails and look at an example of this stage of the hero’s journey.

Deterministic Chaos: Why Prediction is Often Impossible

What is deterministic chaos? How is it different than “true randomness”? Can we make predictions in situations of deterministic chaos? Deterministic chaos is a system whose operation could be predicted, but whose complexity makes prediction so difficult that it’s effectively impossible. That is, if we had the right information, we would be able to make sense of “chaos.” We’ll cover situations of deterministic chaos and if it affects our decision-making.

Road of Trials: The Hero’s Journey, Stage 6 (Explained)

What is stage 6 of Joseph Campbell’s hero’s journey? What is the “road of trials”? The road of trials is the stage of a hero’s journey during which the hero undergoes a series of trials and tests. The road of trails is stage 6 of Joseph Campbell’s hero’s journey, from The Hero with a Thousand Faces. Will cover what the road of trials may look like and explore two examples of a hero on the road of trials.