“Living things are long volatility, equity is short volatility”
— Nassim Nicholas Taleb
Simplified Meaning:
Living beings, like humans, animals, or plants, can handle life's ups and downs over a long time. Think about how trees grow slowly, face storms, and still stand strong for many years. They can adapt and survive through various changes in the environment. In contrast, stock investments (equity) often experience rapid changes in value and are very sensitive to short-term events. For example, stock prices can rise or fall quickly based on a piece of news, political events, or market trends. Applying this idea to our lives, it's useful to develop patience and resilience like living things. When we focus on long-term goals, we can better withstand short-term struggles and uncertainties. Instead of worrying too much about immediate results or setbacks, we should build steady habits and adapt over time. This approach helps us grow stronger and achieve more sustainable success, much like a big old tree weathering storms and continuing to grow.
