Episode 15: Riding with the Kelly Gang - This is how to attain your ultimate wealth goal safely

We discuss the Kelly Criterion and the psychology of maximising your long-term wealth…and how to approach your wealth goal safely. Some of the points we cover in this episode include: -The prince and the pauper: diminishing marginal utility -Why we should become more risk averse as we approach our wealth goal -Arithmetic versus logarithmic returns -Compounded returns: Buffett versus the S&P 500 1965-2019 -Exponential returns and why the rich get richer -Objective versus subjective approaches to Kelly investing -Betting what you’re emotionally comfortable with Books and research mentioned Daniel Bernoulli – expected utility hypothesis (diminishing marginal utility) Thanks for listening! Download a free chapter from our book ’Low Rates, High Returns’ https://www.lowrateshighreturns.com/book Pete Wargent https://www.petewargent.com/ https://www.linkedin.com/in/pete-wargent-37228322/ Stephen Moriarty https://twitter.com/SGM63