"Moment of Zen" cover image

Should We Accelerate or Decelerate Tech Progress?

"Moment of Zen"

NOTE

Maximize Growth Rate with Kelly Criterion

The Kelly criterion defines the optimal level of risk-taking to maximize the growth rate of a bankroll. It is crucial to avoid betting the entire bankroll on a single opportunity to preserve the ability to recover from losses. By following the Kelly criterion, one can maximize the growth rate by making calculated risks instead of going all-in for maximum expected value. This approach ensures that even in the face of low risks, there is always an opportunity to bounce back if the bankroll is preserved, ultimately leading to sustained growth in the long term.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner