“What we call here a Black Swan is an event with the following three attributes: rarity, extreme impact, and retrospective predictability”
— Nassim Nicholas Taleb
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Simplified Meaning:
Imagine there is a rare event that hardly anyone expects to happen, like a tornado hitting a place that has never seen one. When this event does happen, it causes a lot of damage and changes many things drastically. For instance, in 2008, the financial crisis surprised many people. It seemed almost impossible, but when it hit, it affected economies all around the world. Afterward, people looking back might notice signs and think it could have been predicted, even though no one saw it coming at the time. The term "Black Swan" is used to describe these rare and big-impact occurrences that seem obvious only after they happen. Understanding this can help people prepare for unexpected events and be more resilient to sudden changes.
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