Lambda Calculus

I encountered Lambda Calculus when researching how computations can be simplified into some extreme forms. Lambda Calculus expresses computation “based on function abstraction and application using variable binding and substitution” (Wikipedia). It’s Turing Complete (and personally I think it’s a more elegant model compared to the Turing Machine, from the way it abstract computation), and some people view it as the very minimal functional programming language (it definitely inspired some, like Lisp).

Geometric Returns

If you’ve heard about Shannon’s Demon, you might knew the magical experiment that turns a seemingly breakeven game into a profitable one by “rebalancing” after each game. This shows the power of rebalancing – it allows us to approach arithmetic return from geometric return over the long run (since arithmetic returns is always higher than or equal to geometric returns). It has significant implication for investing, since what we care ultimately is the geometric growth rate of the wealth.

There’re a great series of articles studying on this topic:

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