Always think like an owner
Kelly-Thorp method, requires no joint distribution or utility function. In practice one needs the ratio of expected profit to worst-case return — dynamically adjusted (that is, one gamble at a time) to avoid ruin. That’s all.
…t never ask about liquidation preferences or other barometers for the likely long-term value.” Wow. To bring this home, it’s like negotiating your salary without specifying the currency you’re being paid in.
Einstein himself once compared his vision of the universe to a library. He said that he felt like a little boy going to a big study, at night, it’s dark, and there’s all t…