The Black Swan's Lessons

The Black Swan by Nassim Nicholas Taleb isAs examples of Black Swans, Taleb offers events
appropriately subtitled The Impact of the Highlysuch as these to remind us that what we don't know
Improbable. Taleb chose this bird-centric title becausecan be far more relevant than what we do know:
until Dutch explorer Willem de Vlamingh arrived in- The internal combustion engine
Australia in 1697 and encountered black swans,- World Wars I and II
Europe believed that all swans were white. His- The Cuban Revolution
discovery forced Europeans to revise what had been- The personal computer
an obvious and accepted belief. Taleb's title reminds- 1990's internet stock bubble
readers that just because you have never seen a- The Harry Potter phenomenon, which turned a
black swan, doesn't mean that there are no blackmother on welfare into a billionaire
swans.- 9/11
It takes an unusual thinker to write a best-selling bookTaleb is surprisingly positive about America's place in
predicated on the head-scratching concept that unlikelythe global economy, and writes: "It so happens that
events seem impossible when they lie in the unknownAmerica is currently far, far more creative than (older)
or in the future, but after they occur, become a part ofnations of museum-goers and equation solvers. It is
our readily-accepted reality. Taleb has both thealso far more tolerant of bottom-up tinkering and
personal and professional credentials to delve into suchundirected trial and error. And globalization has allowed
a premise.the United States to specialize in the creative aspect
Born in Lebanon in 1960, he holds a master's inof things, the production of concepts and ideas. There
business administration from Wharton, a Ph.D. from theis more money in designing a shoe than in actually
University of Paris and is serving as the Dean'smaking it: Nike, Dell, and Boeing can get paid for just
Professor in the Sciences of Uncertainty at thethinking, organizing and leveraging their know-how and
University of Massachusetts at Amherst. Taleb wasideas while subcontracted factories in developing
founder of Empirica LLC, a corporation with interests incountries do the grunt work, and engineers in cultured
hedge funds and a research laboratory in London. Atand mathematical states do the noncreative technical
25, he became chief currency derivatives trader forgrind. The American economy has leveraged itself
Banque Indosuez, and has also served as a managingheavily on the idea generation, which explains why
director and head trader at Union Bank of Switzerland.losing manufacturing jobs can be coupled with a rising
In Taleb's words, "It is easy to see that life is thestandard of living."
cumulative effect of a handful of significant shocks. It isAccording to Taleb, unlike earlier cultures, Americans
not so hard to identify the role of Black Swans fromhaven't learned to be afraid of failure. We're willing to
your armchair ... Look into your own existence, counttrade the possibility of failure for the chance at a big
the significant events, the technological changes, andupside.
the inventions that have taken place in our environmentBucking the conventional wisdom of most business
since you were born and compare them to what wasbooks, The Black Swan suggests that whatever
expected before their advent. Look into your ownfuture success we may enjoy will most likely have
personal life, to your choice of profession, say, ormore to do with unexpected factors than with precise
meeting your mate. How often did these things occurplanning and prediction of outcomes.
according to plan?"