Why Nassim Nicholas Taleb Doesn’t Read Newspapers

October 18, 2012 — Leave a comment

It was a few years after the beginning of the Lebanese war, as I was attending the Wharton School, at the age of twenty-two, that I was hit with the idea of efficient markets – an idea that holds that there is no way to derive profits from traded securities since these instruments have automatically incorporated all the available information. Public information can therefore be useless, particularly to a businessman, since prices can already “include” all such information, and news shared with millions gives you no real advantage. Odds are that one or more of the hundreds of millions of other readers of such information will already have bought the security, thus pushing up the price. I then completely gave up reading newspapers and watching television, which freed up a considerable amount of time (say one hour or more per day, enough time to read more than a hundred additional books per year, which, after a couple of decades, starts mounting).
Nassim Nicholas Taleb
The Black Swan

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