We place our trust in others every day. This could be advice from an investment expert, guidance from someone supposedly experienced, or directions from people who always seem certain they know the right answer. But amidst a sea of advice and people willing to show the way, how do we know who is truly trustworthy?
In *Skin in the Game *, the fifth book in the popular Incerto series, Nassim Nicholas Taleb presents a seemingly simple but powerful test: See if a person has "Skin in the Game."
The book "Don't Trust Those Who Just Talk." Photo: APB.
Would you dare to eat the dish you offered to others?
"Skin in the game" is an idiom of unknown origin, popularized by Warren Buffett when referring to a fund manager who invests their own money in the investment fund they founded, rather than simply using other people's money while remaining uninvolved in all the risks.
For Taleb, that principle isn't just true in investing. It can also be explained in a very simple way: If you want others to take risks, you must be prepared to share the consequences yourself. That's the foundation of responsibility, fairness, and trust in life.
To explain this principle, Taleb recounts an anecdote from Roman times. A group of fishermen caught many turtles and prepared them for food. Only when the dish was finished did they realize that no one wanted to eat the turtle meat. Just then, the god Mercury passed by. The fishermen cordially invited the god to dine with them, essentially trying to pass the food they themselves didn't want to eat onto others.
But Mercury quickly realized their intentions. He forced the fishermen to eat all the food they had produced themselves. From this story, Taleb drew a simple principle: You must eat what you give to others.
This principle can be applied to many situations in modern life. Would an investment advisor invest in the very portfolio they enthusiastically recommend? Would a salesperson actually use the product they praise? Would the person giving advice be willing to do the same if they were in someone else's shoes?
According to Taleb, before believing someone's words, observe whether they are also part of the same group. Sharing the risks creates accountability for each person's words and actions.
"Skin in the game" is an idiom of unknown origin popularized by Warren Buffett. Source: hoibaonganhang .
Why do we still trust the wrong people?
If "Skin in the Game" is truly a test of trust, why do people still so easily place their trust in those who don't pay the price for what they say?
According to Taleb, the problem isn't that we need advice or guides. The worrying thing is that more and more people are able to influence the lives of others without facing the consequences of their decisions or recommendations.
When people don't have to pay the price for their mistakes, they also have fewer opportunities to learn from them. "The risk-shifting mechanism also hinders the learning process," Taleb writes. This is because, "you can't completely convince someone that they're wrong; only reality can do that."
Because they are detached from the consequences, these people tend to view complex issues in a one-dimensional way, think statically rather than dynamically, and fail to anticipate the ripple effects their actions may create.
Perhaps that is why Taleb made a thought-provoking observation about modern times: "The modern era is cursed with the fact that the world has more and more people who are better at presenting and explaining than at truly understanding the issues."
The message in * Don't Trust the Empty Talk* isn't about stopping trusting others or doubting all advice. What Taleb is reminding us of is being more cautious when entrusting our faith. He even wrote: "He who has no flesh and blood in the game is not worthy of following in his footsteps."
