Fooled by Randomness - The Hidden Role of Chance in Life and in the Markets

Key Insights from 'Fooled by Randomness'

1. The illusion of determinism: Most people operate under the assumption that there is a direct cause-effect relationship for most events. However, randomness plays a much larger role in our lives and markets than we realize.
2. Survivorship bias: We tend to focus on the winners and ignore the countless unseen losers, leading us to overestimate the probability of success.
3. Solonic happiness: True happiness, according to ancient philosopher Solon, is found not in wealth or success but in the absence of misfortune. This principle applies to both life and financial markets.
4. Role of luck and...

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