Lecturing Birds on Flying
Can Mathematical Theories Destroy the Financial Markets?
by:
Pablo Triana
in:
Investing
Summary:
The book critically examines the reliance on complex mathematical models in financial markets, arguing that these models can lead to catastrophic consequences due to their inability to account for real-world unpredictability and human behavior. It advocates for a more pragmatic approach to finance that respects the limits of theoretical models and emphasizes the importance of experience and common sense in decision-making.
Key points:
1. Math Model Overreliance: Triana warns that overreliance on complex math models like Black-Scholes-Merton can create a false sense of security and lead to market crashes.
Books similar to "Lecturing Birds on Flying":
When Genius Failed
Roger Lowenstein
Plight of the Fortune Tellers
Riccardo Rebonato
The Quants
Scott Patterson
Inside the Black Box
Rishi K. Narang
My Life as a Quant
Emanuel Derman
I'm Sorry I Broke Your Company
Karen Phelan
Fooled by Randomness
Nassim Nicholas Taleb
The Man Who Solved the Market
Gregory Zuckerman
What I Learned Losing A Million Dollars
Brendan Moynihan
Your Money and Your Brain
Jason Zweig