The thesis, if I can call it that but I’m probably using it incorrectly, is that there exists certain events in history in which an individual took a gamble and it paid off spectacularly. He defines a gambling event as any event in which the standard deviation is large relative to the absolute value of the expectation. I take issues with this definition because it’s overly simplistic and mathematically does not make sense to me, but whatever, I’ll take it.
He defines many interactions in the book in terms of what he calls “non self weighting strategy.” It is one of the core ideas of the book, is that successful gamblers in history have utilized a non self weighting strategy to win. Honestly the part that explains it left me completely in the dark and I had to go to a 2p2 article to figure out what the fuck it meant. Basically, it means that your bet size is not constant, and changes depending on what your expectation is. Ok I can buy that.
A classic example he just threw in to the last paragraph of the intro is the election of Donald Trump. I read the chapter, and his claim is that because Hillary dismissed the “blue wall” states such as Wisconsin and Pennsylvania (was pennsylvania ever considered by democrats to be unloseable??) and didn’t visit them, that she was utilizing a self weighting strategy. Donald trump, however, visited far more states than she did, and thus, used a non self weighting strategy, which I’m just gonna refer to as NSWS from now on.
I honestly don’t see how Trump used a NSWS in his victory. The chapter just says he used a superior NSWS and that’s why he won, with little explanation given other than Trump visited more states than the “over-confident” Hillary did.
To me, it seems like Hillary took the more calculated gamble. She realized certain states were -EV, so she did not waste time and finite resources on them. She focused on states where there was variance. It seems to me that Hillary took the smarter gamble. Trump, however, visited states he had no chance of ever winning, had no ground game whatsoever, and (self admitted) had very little strategy. His strategy had massive variance relative to his expectation, so I can see the argument of why that was a gambling event, but I absolutely cannot see how it fits in with the theme of this book, that expert gamblers use a NSWS. Trump, to me, hit a 1 outer on the river and won.