One thing I find really interesting about the Kelly Criterion is that it exposes a very stealthy and fundamental "rich get richer" phenomenon. Most real-life r

One thing I find really interesting about the Kelly Criterion is that it exposes a very stealthy and fundamental "rich get richer" phenomenon. Most real-life risks have a minimum and maximum investment amounts, meaning that you can't just size the bet exactly as Kelly says. So if your wealth is low, you cannot rationally participate in many risky but positive-expected-value investments. Simply put, the poor can't take many worthwhile risks (think college!) without rising ruin (and sub-optimal growth). Conversely, the rich can come closer to maximizing EV in many risky markets at once, increasing income and growth while even decreasing variance.