Many Happy Returns cover image

Pessimists sound smart. Optimists make money.

Many Happy Returns

00:00

Investing

There's an ace symmetry between gains and losses. The utility function is weighted towards losses. People think about crashes, but crashes play a very small part in investing. If there is huge pay off with a low probability, people love that. That's what you get with things like private equity or call options on single stocks.

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