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Sep 8, 2021Liked by Joachim Klement

I've always felt that concepts such as calculating 'fair value' are as useful as beating myself in the face with a dead fish (but less amusing and at the end of all the calculations I still don't have a fish). This article explains why in proper grown-up words rather than my exasperated tut-tuting and eye rolling.

...ok so should I use a haddock or a trout today?......

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Go for trout. They taste better :-)

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Am I naive or is the ending wealth problem based on a card trick? If we switch from 50% up and 50% down to $50 up and $50 down, the problem goes away, doesn't it? And doesn't the $ approach make more sense than the % approach?

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No it doesn’t. Read tomorrow’s post where I discuss exactly that.

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