NVIDIA’s stock crash last week was a glimpse of the next Black Swan.
But what is a Black Swan? 👇
In business, a Black Swan is a sudden unpredictable event with the power to disrupt an entire market, or even the global economy.
Think of the 2008 financial crisis, COVID or 9/11.
People and markets try to predict and rationalise these events, but most Black Swans are just impossible to foresee. At least in the way they unfold.
Only time will tell if last week’s drop was just a momentary panic or the first sign of something much bigger.
In his later book, Nassim Taleb argues that people and companies can prepare for Black Swan events by developing Antifragility.
Fragile things break under stress (like glass).
Resilient things survive stress but don’t improve (like steel).
Antifragile things thrive under stress (like muscles that grow through exercise).
The ability to iterate fast, change course and prepare plans B, C, D characterise Antifragile people and companies.
💡Antifragility is the #1 skill for the next decade!
Agreed?