Anti-Fragile systems not only withstand shocks but improve as a result. They learn from adversity, adapt to changing circumstances, and evolve to be more robust. For example:

• Exercise builds. Exertion burns.
• Vaccines and some exposure to diseases improves overall immunity.
• Regular bubble bursts overall weeds out the weakness in the economy

In contrast: Most systems are either fragile or at best resilient.

• Fragile things and systems are vulnerable to shocks and disruptions. For example, glass, weak minds, unprofitable businesses, etc.
• Resilient things and systems can withstand shock and return to their original state after being disrupted. For example, buildings that are designed to withstand earthquakes.

How to build anti-fragility:

• Mindset: See uncertainty and volatility as opportunities to learn.
• Prepare: Actively do things that enhance margin of safety (resilience)
  • Buy your way in Owned Network
  • Build Profitable business in a high-margin industries.
  • Avoid centralized dependencies. Build multiple entry and exit options.
  • Short term pessimism and long term optimism helps you stay focused.
  • Most importantly, be prudent because It is easier to de-grow than to grow.
• Take risks, but within your margin of safety, i.e., avoid making bets that, if unsuccessful, could lead to the Risk of Ruin.
  • Subject your system to controlled levels of stress (variety, volume or velocity) and pressure.
  • Do a pre-mortem, i.e., imagine what scenarios would lead to failure.
• Learn: Observe failures objectively to identify weaknesses and areas of improvements. Work on them.
  • Build feedback loops across the system to enable information flow.

Footnotes

• Nassim Nicholas Taleb