The Acquirers Podcast cover image

Value After Hours S06 E05 John Huber on deep value stocks, compounders, neversell and concentration

The Acquirers Podcast

NOTE

Time Horizons in Risk Management

The decision to take risks in betting on skiers heavily relies on the length of the championship. A riskier skier with an 18% expected chance of winning may be favored in a single race scenario, compared to a safer skier with a 15% expected win rate. However, in championships with more than five races, the safer skier becomes a more profitable choice due to the higher likelihood of the riskier skier getting injured and having to forfeit subsequent races. This demonstrates the importance of considering time horizons in risk management strategies, especially for professional money managers with specific timeframes for performance evaluation.

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