A story is a lie and a story is true
Kurt Vonnegut's theory that stories have shapes was validated by researchers analyzing 1,327 famous stories through machine learning.
- Vonnegut proposed stories follow common patterns like 'man in a hole' and 'boy meets girl', which researchers confirmed by classifying 1,327 Project Gutenberg stories.
- Stock prices follow narrative shapes too, as shown when Match.com dropped 22% after Facebook's dating announcement despite unchanged fundamentals.
- Investment pitches are essentially stories about stocks, where competing narratives like 'icarus' versus 'boy meets girl' shape market reactions before business changes occur.
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