From Fragile, Resilient to Antifragility
Concept of antifragility and how to never have a setback in life, and thrive in the world full of chaos.
The concept of antifragility was developed by Nassim Nicholas Taleb, in his book - “Antifragile: Things That Gain from Disorder”.
simple terms
Fragile = easily broken or damaged.
Resilient = able to withstand or recover quickly from difficult conditions.
Antifragile = not only withstand adversity but to thrive and improve because of it.
Antifragile means getting stronger and better when faced with challenges or adversity, unlike fragile which breaks easily or resilient which bounces back to its original state.
an example
In the investing world, there is often notion of the black swan event, every so often in history.
Just take the Covid-19 pandemic for example, which started in late 2019 and spread rapidly in 2020 across the world. This unpredictable event caused havoc to the all of humanity on earth, caused widespread disruptions to business and colossal loss of lives and livelihoods. Governments around the world implemented lockdowns and restrictions to contain the virus to reduce loss of lives, leading to one of the sharpest economic downturn in history in a very short period of time.
Though four years later in 2024, we are currently have market highs in the share and property across most major developed countries around the world and the economic recovery has been nothing but extraordinary.
Take a moment of time to reflect back four years ago to gauge your own MinDset during the initial stages of the pandemic, in relation to your financial position - were you:
Fragile - likely experiencing significant fear and anxiety about the potential loss of your financial gains and the future. The sudden market downturns and economic uncertainties may have felt overwhelming, leading to a strong desire to protect existing assets and investments. There might have been a reluctance to take risks or explore new opportunities amidst the volatility.
Resilient - initial fear of losing all financial gains. The resilient MinDset helped you to bounce back from the initial shock. You adapted to the new economic environment, adjusted your portfolio as required with a focus on rebuilding the financial position. The MinDset involved maintaining a positive outlook and confidence in the eventual recovery, despite ongoing challenges and uncertainties.
Antifragile - navigated through the chaos, manoeuvred through each setback faced, and capitalised on the opportunities presented by market dislocations during the various stages. With a growth and development MinDset, you were actively seeking out opportunities that emerged from the crisis. You were strategically investing in undervalued assets, looking for innovative business ventures, or acquiring new skills to adapt to the chaos and ever-changing market conditions. Through the fear of the pandemic, your MinDset viewed this as opportunity instead of a setback, leveraging your previous learnings to achieve financial succuss in the post-pandemic era.
Those individuals who embraced the situation, with disregard to the chaos occurring during the pandemic, innovated themselves to thrive with a antifragile MinDset, likely emerged stronger and more prepared for future challenges.
Which MinDset are you preparing for in the next black swan event…
“Some people benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors." - Nassim Nicholas Taleb.
Living an antifragile life:
Now you have the knowledge around antifragility MinDset, lets see how you can position yourself with practical tips to gain from the disorder:
Embrace uncertainty and chaos.
Inject small amounts of stress in life that foster growth amidst chaos.
Build strength from within to overcome fear with chaos with small tasks.
Staying adaptable by maintaining flexibility and keeping your options open.
Avoid the temptation to overly control or suppress chaos in life.
Experiment and tinker—take calculated risks and embrace trial-and-error.
Cultivate a continuous learning MinDset
A simple summary to the MinDvesting philosophy from todays post:
Antifragility challenges the traditional notions of risk management and resilience by leaning into more volatility and disorder rather than merely surviving them. The Antifragility MinDset can be used across various disciplines in life such as health, education, social contects to attain success during chaotic times. It can also help navigate through the chaos by keeping your options open and having the ability to change course quickly in response to unexpected events.
Antifragility MinDset can empower you navigate through the chaos, learn from mistakes and to come out a stronger person on the other side.
Remember the limiting factor in all of the above is only the MinD.
Appreciate your time and making it this far in the post, keep reading over time.