a pari-mutuel system, all bets are pooled together and the payout is determined by the share of the pool held by winning tickets — minus the house take. The odds aren't fixed...
The core idea
a pari-mutuel system, all bets are pooled together and the payout is determined by the share of the pool held by winning tickets — minus the house take. The odds aren't fixed...
Connected
Barbell Strategy
at extremes of safety and risk, avoid the mediocre middle.
Circle of Competence
have an edge in some domains and not others — and the boundary between the two i
Discounted Cash Flow
equals future cash flows discounted to present value.
Margin of Safety
below intrinsic value to protect against errors and the unforeseen.
Arbitrage
is profiting from a price difference for the same or equivalent asset across mar
Asymmetric Upside
upside is a payoff structure where the best-case gain is large relative to the w