The idea is that the average return is not all that counts, it matters whether you can continue to play. But somehow that's sometimes just too hard to remember,. So try to remember it, folks. It's a very deep idea that actually I use, I use all the time when I think about my own risks"
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.