In a nonlinear world, we all think linearly. Promoters. Managements. Investors. Analysts. But Munger looks for lollapalooza effects. George Soros seeks to profit from reflexivity. Nassim Taleb emphasizes the presence of fat tails. Peter Thiel talks about power laws. All of them are looking to arbitrage between the linear environment in which we evolved and the nonlinear environment that we have created.
