Episode Details

On today’s episode, Clay chats with Scott Patterson about his new book - The Chaos Kings. 

The Chaos Kings tells the story of the hedge fund that achieved average annual returns of over 105% from 2008 through 2019, and how Bill Ackman had a $27 million dollar bet that turned into over $2.6 billion. 

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

02:35 - Who the Chaos Kings are.

05:38 - The story of Nassim Taleb and Mark Spitznagel setting up a hedge fund that delivered average returns of 105% annually.

06:12 - How these hedge funds profit tremendously during times of calamity.

16:14 - What led Nassim Taleb to get interested in the markets.

24:55 - Why we should be mindful of just how uncertain the world and our global economy is today.

complexity theory - What complexity theory is.

28:51 - How investors can protect themselves from a black swan event.

45:02 - How Taleb and Spitznagel viewed the world differently than conventional wisdom.

53:12 -How predictable Black Swan events are.

57:41 - Looming Black Swans that Taleb sees in today’s world.

60:49 - What the precautionary principle is.

63:23 - Taleb and Spitznagels take on the systemic risks in the financial system today.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
• Scott’s new book - The Chaos Kings.
• Scott’s website.
• Check out our recent episode covering the 2023 Berkshire Hathaway Shareholder Meeting or watch the video.
• Follow Clay on Twitter.

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