Who was the first to advocate using the geometric return in investing? Both Mark Spitznagel and I agree it was Daniel Bernoulli.
Most investors would benefit from understanding the true message from his brilliant 300 year old paper on measuring risk.
breakingthemarket.com/the-earliest-a…
The thread from last December where I first approached the topic.
A few sections from Spitznagel's book:
Risk aversion is not necessary with Bernoulli's framework
Academics missed the point
mapping to the geometric average
The big idea, hidden by a slick function.
Bernoulli was first, and his findings change everything.
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