Taleb: Skin in the Game --- Book review

[nooby_mcnoob]

So then what would be the best way to incentivize optimal performance?

You shouldn't incentivize "optimal performance" but you can avoid ruin by following the prescription of skin in the game.

 

[ironchef]

He was down something like 14% over two years. During the internet boom/telephony dereg period.

I thought his idea was to benefit from Black Swans and tails, not boom?

 

[Frederick Foresight]

You shouldn't incentivize "optimal performance" but you can avoid ruin by following the prescription of skin in the game.

https://www.dictionary.com/browse/optimum

Optimal as in reward/risk.

 

[nooby_mcnoob]

https://www.dictionary.com/browse/optimum

Optimal as in reward/risk.

I don't think you need to incentivize separately, make sure a large majority of their liquid net worth is in the fund.

 

[Frederick Foresight]

I don't think you need to incentivize separately, make sure a large majority of their liquid net worth is in the fund.

You will note I suggested this earlier. I'm interested to know what Sig thinks since he doesn't appear to agree.