Pareto Principle Tag Archive

Connect through your superfriends

(Extracted from Barking Up the Wrong Tree by Eric Barker) … there’s an 80/20 rule of sorts in networking. You probably met the vast majority of your friends through a handful of “superfriends”—the...

Life, Nonlinearity Read More

Ed Thorp on Kelly Criterion

(Excerpt from A Man for All Markets by Ed Thorp) Kelly’s criterion is not limited to two-value payoffs but applies generally to any gambling or investing situation in which the probabilities are known or can be...

Investing, Kelly Criterion, Nonlinearity Read More

Size of wins matters, not frequency of wins

(Extracted from Fooled by Randomness by Nassim Taleb) The best description of my lifelong business in the market is “skewed bets,” that is, I try to benefit from rare events, events that do not tend to repeat...

Investing, Nonlinearity Read More

How much you win or lose, not how often you win

“It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.” George Soros...

Investing, Nonlinearity Read More