axelhodler

Skin in the Game - Nassim Taleb

For Taleb skin in the game means that you do not pay attention to what people say, only to what they do, and to how much of their necks they are putting on the line.

A common example is

Don’t tell me what you “think” show me your portfolio

You believe Apple will dominate Microsoft? Show me your AAPL position. You think Tesla will go bankrupt soon? Show me your Put-Options on TSLA.

In ancient times the warlords marched into battle with their armies. They had something to lose. Their lives. Modern policymakers have nothing to lose if they call for war in countries they have never been to.

Talk is cheap. See

Kids with rich parents talk about “class privilege” at privileged colleges such as Amherst—but in one instance, one of them could not answer Dinesh D’Souza’s simple and logical suggestion: Why don’t you go to the registrar’s office and give your privileged spot to the minority student next in line?