Reading Nassim Taleb

Sat, 02/20/2010 - 17:59

Ryan asked whether it makes sense to read Nassim Taleb's forthcoming book. Here's a few thoughts on that, because I dissed Taleb a couple of posts ago.

There's a great benefit to reading someone like Taleb who expresses his opinions forcefully using language that is extreme (even if it's bordering on contemptuous at times). It allows you to consider the alternatives with clarity. Giving serious consideration to another's point of view even if you don't agree usually means you'll learn something.

Some of Warren's proposals on taxes strike people as extreme. What's interesting is that people who disagree with them rarely think through them from the perspective, "This guy must know something, he's pretty smart, maybe I can learn something that would augment my knowledge." Instead you read letters to the editor that start out "What Warren Buffett can't seem to understand is...." Believe me, he understands the other side's point of view. If anyone ever understood taxes it is Warren Buffett. Assuming that someone who disagrees with you must be dumb can lead you to seriously underestimate people and make really dumb decisions yourself.

So anyway, yes, if you have time, I would read the book. There's an opportunity cost to reading anything. Consider what else you might be reading instead, and if this is your best option, go for it!

 

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Sun, 02/21/2010 - 10:19 — aliceschroeder

oh dear

Dear Anonymous,
I opened the blog this morning to find that you posted a comment you didn't want posted... I'm going to delete it, but want you to know that some number of people have probably seen it. Folks, if you hit "save" it appears on the blog. I'm not editing your comments.

If you want to write me a private email please do so at alice@aliceschroeder.com. I can't respond to a large volume of individual emails because otherwise, no work would get done, but I do try to respond to as many as possible, at least with an acknowledgment. If you don't want your comments seen by everyone, this is the way to do it.

Sat, 02/20/2010 - 23:58 — John Klein

Taxes

Hey Alice,

I wanted to post this in the Discussions somewhere, because its a fairly big topic, but I didn't know which section it went under.

You said, quite correctly I think, that Buffett understands taxes better than just about anyone, and has, no doubt, thought very carefully about them from every perspective. Also, in any intro macro class, and any Republican convention ever, you will that lower taxes for the rich means higher investment, thus higher growth, thus everyone (even the poor people) are better off over time. Obviously Buffett understands this argument. So, my question is, what do you think is his opinion (or maybe he actually said this to you) of this argument is, and why he thinks that it is even more important to help the poor/ middle class by taxing the rich?

Sun, 02/21/2010 - 10:23 — aliceschroeder

taxes

Hi John,
I'm moving this to Entrepreneurs. We don't have a macroeconomics forum but that's properly where this belongs. Warren cares about macro because of its effect on micro. see you over there - cheers, Alice

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