61 reputation
2
bio website
location
age
visits member for 2 years, 1 month
seen Nov 22 '13 at 20:37

Aug
29
comment Long-term vs short-term strategies \ investing
Yes, sorry, I don't have much formal training in finance. The loss of benefits is pretty clear; the question is about an optimal \ reasonable way to trade short-term quality parameters for long-term quality parameters.
Aug
29
comment Long-term vs short-term strategies \ investing
Well, yes, in a sense. I would like to know if there is any model that describes such a trade-off.
Aug
29
asked Long-term vs short-term strategies \ investing
Aug
29
comment St Petersburg lottery pricing & short investing horizons
This is useful, but I seek understanding on a somewhat higher level. My formulation was not exactly what I wanted to ask. I will try to reformulate in a separate question.
Aug
29
comment St Petersburg lottery pricing & short investing horizons
Thanks for your thoughtful answers, guys. Now, let us replace "stock" with "asset" or "strategy" and consider Nassim Taleb's strategy of constantly buying puts on the whole market. The strategy has about the same profile of bleeding money almost all the time, except rare market crashes when it profits a lot. Taleb's logic (I guess) is that the market "pays" for the psychological discomfort brought by such a strategy and by the long horizon. It seem logical, but how can we quantify it? Is this particular strategy's risk diversifiable or not?
Aug
29
comment St Petersburg lottery pricing & short investing horizons
Thank you! Will read the papers.
Aug
29
comment St Petersburg lottery pricing & short investing horizons
Thanks a lot! I will have to read the papers; the main problem to me is understanding the logic of valuation \ risk, and your excellent answer helps a lot.
Aug
29
awarded  Supporter
Aug
28
awarded  Student
Aug
28
asked St Petersburg lottery pricing & short investing horizons