Kelly Criterion
topic on 2 shows · 2 statements across 2 episodes
Founders 
the Knowledge Project
2 statements about Kelly Criterion, every show
The Kelly criterion implies 100% portfolio concentration given complete certainty
“The common sense outcome of that equation is that if one is certain of being right, one should invest the entire portfolio in that idea.”
Davis: Max-betting every positive expectation edge guarantees ruin
“It was such an insane theory. To think that, you know, the theory would say bet it all every time that you have an advantage. And if everybody did that, you would get a better outcome net. But of course, it's an insane theory because you're certain to end up a…”