I'm Risk Averse

"Said of an investor who, given the same return and different risk alternatives, will choose the security with the least amount of risk." From some site found by a Google search.

My definition is winning is not as important as not losing. This is probably not a formula for success in life.

Were I to win a thousand dollars, I'd be pleased; but, that pleasure is outweighed by the unhappiness I'd feel if I lost a thousand dollars. Winning or losing the money would make no difference in my life; but, I "value" one more than the other, seeing it as having greater utility.

I almost always look for the outcome in any situation that is "acceptable." Not a big score; but, not a big loss.

Given my personality, it's interesting that I play a form of "table stakes" poker for a living. Litigating and negotiating for large sums of money, not mine, my clients. There, the goal is usually to gain the best result under the circumstances. The best result can be losing, but losing less than could be possible in the circumstances. In practice, my personality is often a plus. I don't give advice that I think carries great risk (or better put, I include that advise and make clear the risks it involves).

Clients often want to hit a home run, until they understand the cost of hitting it. "Sue the bastards!" "What do you mean the fees are $X and chances are we can't get $Y?" "So what are the other alternatives?"

This weekend I'm going to Biloxi, the low rent Vegas. It has its pluses: one hour plane flight, no recovering from the three hour time difference experienced in Vegas.

With my personality, what am I going to do, you ask. Nothing that requires much thinking. No blackjack or poker (other than video which doesn't require counting or people reading and which actually has the worst house advantage). Some slots and roulette. The latter is a great way to win or lose slowly while being served "free" drinks. I know, it has one of the worst rates of return in the casino. But, I don't have to think. Five bucks on red, black or odd or even. Five bucks on one of the "third" bets - 1 - 12, 13 - 24, 25 - 36. It pays even money on the first five bucks and two to one on the second five bucks, though the odds are a bit worse than that because of the green 0 and 00, hence the house advantage. Or, eight single chip bets on interior numbers with two bucks split between 0 and 00. Pays 35 to 1 against odds of 38 to 1. Which is 35 to 10 or 3 1/2 to 1 given my bet, a little better than the 3 to 2 payoff on my, a bit safer, outside bets. Slow but sure losses are the probable outcome, with the chance of keeping some of the casino's money.

If I win, I'll let you know. I suppose that means that if you don't hear what happens, you'll know anyway.