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gjm comments on Great Books of Failure - Less Wrong
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When genius failed: the rise and fall of Long-Term Capital Management by Roger Lowenstein.
Subject: How a hedge fund with two Nobel-calibre alleged experts in the mathematical modelling of asset pricing won big in the short term and imploded disastrously in the slightly longer term.
Lessons: Sophisticated but semi-detached mathematical models can lead to overconfidence and get you absolutely destroyed. (This applies no matter how clever they are.) A strategy that notionally wins on average, in the long term, may still lead to disaster in the shorter term. Markets are anti-inductive.
See also: The smartest guys in the room, recommended by Eliezer.
Missing word or link: "Markets are ???"
Whoa, thanks. I missed out the aitch tee tee pee colon slash slash from the URL part of the link, and the result is that the whole thing didn't show at all.