The Dao of Capital
by Mark Spitznagel, Ron Paul · first published 2013
100% recommend
Why HN recommends it
Argues that losses can be a source of long-term gain, with a counter-intuitive case for tail-risk hedging and a boom-bust view of the economy. Readers find it thought-provoking for investing and economic thinking.
Summarised by Claude from recommending comments
"As today's preeminent doomsday investor Mark Spitznagel describes his Daoist and roundabout investment approach, "one gains by losing and loses by gaining." This is Austrian Investing, an archetypal, counterintuitive, and proven approach, gleaned from the 150-year-old Austrian School of economics, that is both timeless and exceedingly timely.In The Dao of Capital, hedge fund manager and tail-hedging pioneer Mark Spitznagel--with one of the top returns on capital of the financial crisis, as well as over a career--takes us on a gripping, circuitous journey from the Chicago trading pits, over th
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…a rigorous way. For those who are interested to read more on how this is done, have a look at the papers here: https://www.universa.net/riskmitigation.html Spitznagel has also written a book called Dao of Capital which talks about the logic and underlying philosopy of these ideas: https://www.amazon.com/Dao-Capital-Austrian-Investing-Distor... There's also Dynamic Hedging by Taleb https://www.amazon.com/Dynamic-Hedging-Managing-Vanilla-Opti...…
on “Universa tail fund returned 3,600% in March” ↗One of my favorite investing books (wait for it, it ties in!) is The Dao of Capital [0] which is all about contrarian investing. Great read on investing and for the philosophical perspective as well. In the book Mark Spitznagel (investment manager for Nassib Taleb's black swan inspired…
on “2,000-year-old redwoods survive wildfire at California's oldest state park” ↗- Gödel, Escher, Bach, Douglas Hofstadter - Principles, Ray Dalio - L'Etranger, Albert Camus - Les Fleurs du Mal, Charles Baudelaire - The Dao of Capital, Mark Spitznagel - Howl, Allen Ginsberg - On the Road, Jack Kerouac I could go on and on...
on “Ask HN: Which books have made you introspect?” ↗The DAO of Capital by Mark Spitznagel, it basically talks about an investing approach where “one gains by losing and loses by gaining.”, it is very insightful because it explains a strategy and effect I have seen work everywhere.…
on “Ask HN: Best books you read in 2017?” ↗Mark Spitznagel covers this concept quite extensively in his book 'The Dao of Capital', which I highly recommend.
on “Finland Is the Happiest Country in the World, and Finns Aren't Happy about It” ↗Second this. Taleb's Black Swan and Spitznagel's Dao of Capital especially were extremely thought provoking and have changed the course of my life. I read them every year at least.
on “Ask HN: Which books have made you introspect?” ↗Three things: 1. Economics in one Lessons. One of the most powerful books I've read on the economy. Will help you rethink and see deeper 2. Dao of Capital. Book by Mark Spitznagel -- goes into tail risk hedging, and his counter-intuitive investment thesis. He made 4000% over Covid 3. Dalio's essays -- from "The changing world order" to "Debt Crises"
on “Ask HN: What are you reading to make sense of the economy?” ↗I recommend "The Dao of Capital", which is written by Mark Spitznagel. Spitznagel also deals with risk (but in a very Austrian + Daoist + Sisu way). Both Spitznagel and Taleb have known each other for 20 years, and Taleb is an advisor…
on “Taleb: The only man who has a clue” ↗…continue to do so until we let go of of the crazy attempt to do so. *no intended for you personally, just a good place to plug my two cents (pun intended) I'd advise anyone to read some Mises or the Dao of Capital by Spitznagel, the book is whip smart and applicable to basically any endeavour.
on “MasterCard to open up network to cryptocurrencies” ↗…thought system which may well be called the "mediterranean soul". Later books by him can be safely ignored, more worth in his Medium articles, especially the one on work and employment. - Spitznagel "Dao of Capital", pound for pound one of the smartest books I've ever read.
on “Ask HN: Life Changing Books?” ↗