This is a synonym for “if money compounds and you want more of it at lower risk”.
No it’s not. In the real world, money compounds and I want more of it at lower risk. Also, in the real world, “utility = log($)” is false: I do not have a utility function, and if I did it would not be purely a function of money.
I either think this is wrong or I don’t understand.
What do you mean by ‘maximising compounding money?’ Do you mean maximising expected wealth at some specific point in the future? Or median wealth? Are you assuming no time discounting? Or do you mean maximising the expected value of some sort of area under the curve of wealth over time?
No it’s not. In the real world, money compounds and I want more of it at lower risk. Also, in the real world, “utility = log($)” is false: I do not have a utility function, and if I did it would not be purely a function of money.
I agree—sorry about the sloppy wording.
What I tried to say wad that “if you act like someone who maximises compounding money you also act like someone with utility that is log-money.”
I still disagree with that.
I either think this is wrong or I don’t understand.
What do you mean by ‘maximising compounding money?’ Do you mean maximising expected wealth at some specific point in the future? Or median wealth? Are you assuming no time discounting? Or do you mean maximising the expected value of some sort of area under the curve of wealth over time?