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Learnings Mental Models

The Kelly Criterion: Optimizing Decision-Making for Success

Introduction In the realm of decision-making, understanding the mental models that shape our choices is invaluable. One such powerful model is the Kelly Criterion. This concept provides a systematic approach to managing risk and maximizing long-term growth. Anchored in human psychology, the Kelly Criterion influences our day-to-day lives, from personal decisions to business strategies and […]

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Learnings Mental Models

The Arbitrage Mental Model: Unveiling the Illusion of Risk-Free Gains

Introduction Within the intricate realm of decision-making, the Arbitrage mental model stands as a captivating concept that explores the pursuit of risk-free gains through exploiting price discrepancies. Anchored in human psychology, this model reveals our innate desire for profit and the tendency to make irrational decisions when faced with opportunities that seem too good to […]