Skin in the Game: Do You(Really)Need it?

You can’t review books whose authors dare to tell truths.Like Munger and Taleb and Mr.Money Mustache.

Nassim Nicolas Taleb wrote the book, Skin in the Game: The Hidden asymmetries of Daily life, and today I will tell you what happens when you look inside your own brain. That doesn’t make sense. But that’s what happens when you read this book and sift through all your own beliefs, preconceptions, and `understandings.  

You go through life feeling like a misfit. But you do well personally and professionally. You miss ruin and troubles sometimes by luck. You automatically identify the shifty-eyed insurance agent as untrustworthy, just like the neighborhood good-for-nothing uncle. In that case, my blog post today is for you, or you can read Miss Marple by Agatha Christie.

The books by these authors I mention should be mandatory reading before you become adults. Yes, even if you are over eighteen, adulting may have skipped you. When I read Skin in the Game, I was confused. How is it that you read important stuff when you least expect it?

The funniest thing about the book:

The author has a fascinating opinion about macroeconomics and journalists. I am being polite here.

The two unpredictable thing about the book?

How something so full of worldly wisdom can make you laugh.

Mr.Taleb’s total lack of fear about being called out by “book reviewers.”

Who is this book not for?

Skin in the Game: The Hidden asymmetries of Daily life is not a book for the faint-hearted. It’s not a book for you, if you only like to talk about roses and always ignore the “thorns.”

• If preventive healthcare is not something you like, wisdom that prevents problems may appear rude reading material.
• But if you have an open mind or at least think you do. Plus, if journey inside your own mind and asking challenging questions to your own mind doesn’t strike fear in the crevices of your mind.
• If you like to do things so that your inner nemesis stops boring you to death with I told you so you must read this book.

Sharing some pearls of wisdom to avoid hidden inequalities

When you have Skin in the Game, you do away with cosmetics. Taking advice from people without Skin in the Game is behind many of your woes.

• Strengths are more important than weaknesses. Focus on the former.
• The power of peer pressure shouldn’t be underestimated.
• Better safe than sorry.Sounds boring but works every time.
• First, live, then philosophize. If the choice doesn’t ensure survival, then the option needs to be dunked.

My favorite part :About taking risks and skipping ruin

If there’s a risk of ruin, that’s not worth taking. Mistakes are human but total ruin is not acceptable. If something can cause ruin, the real or alleged benefits can never offset risks.

Every single risk adds up to reduced life expectancy.

 It is the consequences that matter. Systemic effects which will affect more than one person should they happen. Tail risk analysis for repeated exposure is often ignored. Understand the tail risk of your choices. 

Rationality is avoidance of systemic ruin. Being a rational optimist is a great way to live.

Do you have Skin in the Game?

Then wearing a mask will help fight COVID. As the author talks about the multiplicative fat-tailed risk, I realized why people fail to take prevention seriously. They aren’t aware or don’t care about the people who contact them might be at a higher risk.

Always do What you are afraid to do.

Emerson

If you don’t like truth, facts, unwrapping problems to solve them, give this one a wide berth. It will give you nightmares. You are a sum total of your choices and then something more. 

Saying that this is the most thought-provoking book I read in September.

The best part Munger’s principles sit well with what the author writes about. My website and financial independence journey have a lot to do with Charlie Munger and Mr.Money Mustache, and this book is about Life wisdom as they are to making and keeping money.

Sleep well, my friend, because after you read this, you might just lose some sleep! Writing this for My Friend Alexa with Blogchatter.