Summary
Ergodic systems have outcomes that are consistent over time for individuals and groups, while non-ergodic systems do not guarantee the same results for individuals as for the group. This difference can lead to significant risks, especially in finance, where assumptions about consistent returns can result in losses. To navigate non-ergodic situations better, individuals can diversify their investments and make their liabilities more flexible.
Highlights & Notes
Curated annotations from Readwise.