Positive skew: lots of little losses but when you win you win big.

· Bits and Bobs 5/18/26
  • Positive skew: lots of little losses but when you win you win big.
    • Negative skew: make money consistently but when you lose you lose big.
    • The former is lottery tickets.
    • The latter is fire insurance.
    • In the latter, you don't know if your financial model actually works until the big fire.
    • You can think you're in the best business ever… until your business explodes.