[im3w1l]

Maxmizing log returns is very good in many respects. It has nice mathematical properties. It's not too far off from what people subjectively value. But it is an approximation. For instance, how upset would you be if you woke up to find your bank account was $0? Pretty upset I'm sure. Infinitely? Doubt it. Now some one gives you a single cent out of pity. Feeling a lot better? Hardly.

The subjective satisfaction we get from a certain amount of money is something that would take a lot of experimental science to figure out, and subject to change as society changes. How high up Maslows hierarchy of needs can you climb, and how long can you stay there until age brings you low?

Now where log returns really shine is if you make a very large number of similar bets. Thats where the asymptotic behavior dominates. But if you make a big once in a lifetime decision of whether to bet the farm on a new business idea, that's where you have to figure out your own values.