Luca: Some strategies are one is redistribution, which means every now and then you take some of the investment that went very well or that look the most promising, and you reinvest them somewhere else. Another thing that you want to do is to never go all in on a bed. Luca: There's no such thing as sure bet, there's just like this stock that you think is going to be a big success but it could be something that will make your life great.
Author and consultant Luca Dellanna talks with EconTalk host Russ Roberts about the importance of avoiding ruin when facing risk. Along the way Dellanna makes understandable the arcane concept of ergodicity and shows the importance of avoiding ruin in every day life.