Curious Worldview Luca Dellanna | It's Ergodicity All The Way Down
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Sep 12, 2023 Luca Dellanna, a successful author of nine books and consultant specializing in risk and behavioral psychology, dives deep into the concept of ergodicity and its significance in decision-making. He explains how understanding ergodicity can impact investment strategies and personal health. The discussion covers the challenges consultants face in aligning pay with results and the implications of fat tails in risk assessment. Luca also highlights the importance of serendipity in achieving success and the need for a long-term perspective in business and creativity.
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Ergodicity and Time Horizons
- Ergodicity studies how time horizons affect decisions and strategies.
- The optimal strategy always depends on the time horizon.
Repeated Actions and Outcomes
- Doing an action once may have different outcomes than repeating it multiple times.
- Ergodicity examines this difference and identifies actions that yield consistent returns.
Investing and Gambling
- In investing, consider survival and avoid bankruptcy, especially with long-term investments.
- High-risk, high-reward strategies may work once but are dangerous when repeated.
