Comment by wenc

The takeaways from NNT’s books are summarized in the top Amazon review. The summary is actually pretty useful and relevant and highlights some of the pitfalls of applying common statistical concepts to fat tailed distributions and the change of mindset that is needed.

We tend to gloss over assumptions like finite variance or iid but they matter a lot for reasoning correctly on fat tailed distributions.

Also the law of large numbers only works if you don’t have a game over scenario or fat tails.

https://www.amazon.com/gp/aw/review/1544508050/RMD3OUG0WQWWY