What Can We Learn From Expert Gamblers?

I always figured there was a connection between investing and gambling. The linked Ted Talk is about what we as investors can learn from successful gamblers. Kind of fun too.

What Can We Learn From Expert Gamblers?: Dylan Evans at TEDxWestlake

https://www.youtube.com/watch?v=7jyokhjUCyk

Denny Schlesinger

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Thanks for posting that Ted Talk Denny. That was interesting and definitely has application to investing. As I think about the statements of an expert gambler having a more long term perspective on progress, it is similar to someone worrying about a single day’s change in Stock price. I also think the relative weighting in my portfolio follows my confidence level of the opportunity each company offers.

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This is reminding me of the Kelly Criterion, which calculates what fraction of your chips you should use on your next bet, in order to minimize the chance of getting wiped out before your advantage lets you win big.

http://www.albionresearch.com/kelly/

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This is reminding me of the Kelly Criterion,

Mathematics applied to chance.

Denny Schlesinger