The markets bled red today. I didn’t get an opportunity to enter the trade I was looking for so a book review for today instead.
music selection: “Song 2 ” — Blur
Today’s book is Against The Gods – The Remarkable Story Of Risk by Peter L. Bernstein. It is a peculiar history book. It follows the history of mankind’s thoughts on the subject of risk all the way from “all fate is determined by the Gods” to the development of the Black-Scholes options pricing model.
I enjoyed this book immensely. It isn’t the sort of thing I normally pick up for leisure reading but it intrigued me. The most enjoyable part is it is a unique human story. The book includes a number of amusing anecdotes regarding famous thinkers in history and their relationship to tavern gambling. It also covers the unfortunate incident where Tycho Brahe lost his nose in a drunken brawl with broadswords.
I took special interest in the section about how insurance underwriting came to be and how the art and science was developed. Long time raptors know I am very high on the prospects of the property and casualty insurance segment. The book covers the underlying science in a way a lizard brain can’t.
Devour your prey raptors!