- Fragile things are exposed to volatility, robust things resist it, antifragile things benefit from it.
- The antifragile system is made up of fragile parts.
- The weak one dies in the process while the strong one stays.
- Individual failure can provide helpful information to strengthen the system as a whole.
- Shock and stressors strengthen antifragile system by forcing them to build up capacity.
- When human bounce back after traumatic accidents, hardships or failures, they become stronger.
- Lifting heavy puts the body to unusual stress and makes the muscle stronger.
- Even though The Titanic was a disaster, it made the ship cruising system stronger.
- Trying to over-control systems often leads to fragility.
- Mom who overprotects her children prevents them from developing the ability to bounce back and adapt to future difficulties.
- To take advantage of antifragility, you don’t need to understand the opportunities you see, just when to seize them.
- Society put too much value on theoretical or academic knowledge and not too much on a practical one.
- Often the most successful traders don’t know complicated economic theory or finance; they know when to buy and sell.
- The Industrial Revolution was not instigated by academics but hobbyists.
- The shorter the time frame you observe an event, the higher the noise you will perceive.
- Prediction in the modern world is impossible.
- We always find patterns, causes, explanations in past events, but they are useless for predicting the future.
- An assumption that the worst event we have witnessed must be the worst that could ever happen is simply false.
- What’s most likely to stick in the future is what has already been around for long.
- Instead of trying to predict what is going to happen, position yourself in such a way that you have optionality.
- The more options you have, the more ways you have to respond to unforeseen events (but not too many options).
- Prepare for failure scenarios.
- Squeeze is a situation where you have no choice but to do it, regardless of the cost.
- They are the opposite of options.
- The larger something is, the harder the squeeze, the more damage it causes.
- Still, the larger something is, the harder it will be hit by unexpected events.
- The Barbell Strategy suggests to play it safe on one side so that you can take more risks on other side.
- Cover your downside to protect yourself from extreme harm.
- Let the upside take care of itself.
- If the risky part plays out badly, you’re still fine.
- If a Black Swan event makes the risks pay off big, you profit handsomely.
- Practical activities:
- Lift heavy weights or do HIIT.
- Practice intermittent fasting.
- Eat fermented foods, such as sauerkraut, kimchi, yogurt, pickles,…
- Cold/heat exposure.
- Take cold showers, ice baths, wear less clothes and sleep only with your sheets.
- Take saunas, do Bikram yoga and get a sweat on during training.
- Put most of your money in safe investments and 10% in highly lucrative ones.
- Keep your day job but take massive action on your side hustle at night.
References: