There is a deep connection between Bernoulli's dictum and John Kelly's 1956 publication. It turns out that Kelly's … - William Poundstone

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Every morning I walk like this around the pond, thinking: if the doors of my heart ever close, I am as good as dead.

William Poundstone

There is a deep connection between Bernoulli's dictum and John Kelly's 1956 publication. It turns out that Kelly's prescription can be restated as this simple rule: When faced with a choice of wagers or investments, choose the one with the highest geometric means of outcomes.

Choices, Dictum, Geometric, Mean, Restated, Simple

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The more improbable the message, the less "compressible" it is, and the more bandwidth it requires. This is Shannon's point: the essence is its improbability.

Essence, Improbability, Messages, Point, Requires, Shannon

Are there any mythical beasts which aren't simple pastiches of nature? Centaurs, minotaurs, unicorns, griffons, chimeras, sphinxes, manticores, and the like don't speak well for the human imagination. None is as novel as a kangaroo or starfish.

Chimeras, Griffons, Imagination, Kangaroos, Simple

People tend to be clueless about prices. Contrary to economic theory, we don't really decide between A and B by consulting our invisible price tags and purchasing the one that yields the higher utility, he says. We make do with guesstimates and a vague recollection of what things are “supposed to cost. ”

Clueless, Consulting, Invisible, Price Tag, Prices, Yield

Expectation is a statistical fiction, like having 2. 5 children.

Children, Expectations, Fiction, Having, Like

Samuelson, however, hedged his personal bets - by putting some of his own money in Berkshire Hathaway.

Bets, Hedged, Money, Personal, Putting, Samuelson