Buffettology and the Kelly Criterion: The Hidden Formula That Supercharges Compounding
Warren Buffett is famous for his quotes, his calm temperament, and his legendary long-term holdings. But what separates him from almost every other investor isn’t just what he buys—it’s how much he buys. Behind the scenes, Buffett’s approach to capital allocation mirrors a little-known mathematical formula used by gamblers and quantitative traders: the Kelly Criterion. […]
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