Mohnish Pabrai Lecture at Boston College (Carroll School of Mgmt) - October 8, 2020
Chai with Pabrai
00:00
The Role of the Kelly Criteria in Capital Asset Allocation Decisions
In many cases, micro will trump macro. At some price, your risk levels go down. The main issue with the Kelly criteria is that it works really well if we get to make a bunch of similar bets,. If you do 100 coin tosses, where heads is 51% and tails is 49%. And I keep betting heads. You can use that formula to figure out if you have $100 how much you should put on each bet. So I don't use the Kelly and it was a mistake to put in the book.
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