Some things are so important that they need to be gone over, and over and over.

The Kelly model, half Kelly compared to full Kelly.  So important to understand.

Then this C Munger concept...



this link has the material needed.

http://can-turtles-fly.blogspot.com/2009/08/charlie-munger-stock-market-as-pari.html


Everybody goes there [horse track using pari-mutuel betting system] and bets and the odds change based o­n what's bet. That's what happens in the stock market.

Any damn fool can see that a horse carrying a light weight with a wonderful win rate and a good post position etc., etc. is way more likely to win than a horse with a terrible record and extra weight and so o­n and so on. But if you look at the odds, the bad horse pays 100 to 1, whereas the good horse pays 3 to 2. Then it's not clear which is statistically the best bet using the mathematics of Fermat and Pascal. The prices have changed in such a way that it's very hard to beat the system.

And then the track is taking 17% off the top. So not only do you have to outwit all the other betters, but you've got to outwit them by such a big margin that on average, you can afford to take 17% of your gross bets off the top and give it to the house before the rest of your money can be put to work.

So this is a good time to consider the mispriced bet, especially those who may have read BoB West's recent longer item.  Its just so well done, and there are parts that speak to this very issue.

There is NO DOUBT that QUIK is in the Sensor Fusion Coffee house, where conversations of the most interesting nature, but all related to sensors, fusion, the algos and who has the talented algo chefs, the tiered intelligence are taking place.

Its a mispriced bet, is the bet I have made......