Book Review - Skin in the game
You will never fully convince someone that he is wrong; only reality can.
On a regular day in September 2023, I decided to pick up a new book, not realizing the rollercoaster of a journey it would take me on. This wasn’t your typical page-turner; its dense chapters often sent me on quests across Google, deciphering words like “agency problem” and “green number fallacy.” And whenever that happened I closed the book and moved on to do something else other than reading.
While a good portion of the book was straightforward and simple to understand, a few chapters presented intricate hurdles for me. It was only after finishing the book that I stumbled upon explanations for these complex terms in the appendix, an insight future enthusiasts might value having early on.
I found that the author’s viewpoints in certain sections appeared contradictory with earlier paras in chapters which for sure diminished my interest. Yet, the vibrant casino illustrations, captivating explorations of skin in the game, use of the Lindy Effect as a tool again and again, using probability theory make the book worthwhile to read. For example -
1️⃣ 𝐒𝐤𝐢𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐆𝐚𝐦𝐞 - Life’s a playfield of risks. If you’re not putting your skin in the game, even when you’re well-acquainted with the stakes, you’re already sidelined. Whether you reap the rewards or face setbacks, having skin in the game signifies genuine involvement.
2️⃣ 𝐓𝐡𝐞 𝐋𝐢𝐧𝐝𝐲 𝐄𝐟𝐟𝐞𝐜𝐭 - In an era flooded with information, how do you discern the gold from the clutter? Enter the Lindy Effect. Information that has withstood the test of time and remains relevant is invaluable. Think about it: If a practice or knowledge piece existed 5,000 years ago and is still prevalent today, it’s likely to continue for another 5,000 years!
In a digital age where “new” is often mistaken for “better”, let’s not forget the wisdom that has journeyed through time.⏰
Also, the use of probability theory by the author in stocks made me curious as he used mathematics for the prediction of tail events. He has also written a book Fooled by Randomness. I am going to read that next. Why? Because I love mathematics.
I am gonna end this review with some quotes that struck me the most.
Don’t tell me what you think, tell me what you have in your portfolio
What matters isn’t what a person has or doesn’t have; it is what he or she is afraid of losing.
Courage is the only virtue you cannot fake.
Those who talk should do and only those who do should talk.
The last and most important one for me -
- You can define a free person precisely as someone whose fate is not centrally or directly dependent on peer assessment.
Now, I suppose it’s time I should put down my pen.
Under: #psychology , #economics , #business , #finance , #non-fiction , #philosphy