4 ms·
Being wealthy enough to cover it yourself doesn't mean it's stupid to buy the option to avoid the downside if it's priced properly.
by sailfast 2y ago
Being wealthy enough to cover it yourself doesn't mean it's stupid to buy the option to avoid the downside if it's priced properly.
- andoando 2y agoInsurance companies are always going to give you unfavorable odds, unless you think for some reason youre more likely than average to have an accident. I don't understand why car/home insurance isnt nationalized
- cmrdporcupine 2y agoCar insurance is nationalized in a few Canadian provinces. https://en.wikipedia.org/wiki/Public_auto_insurance https://en.wikipedia.org/wiki/Public_auto_insurance
- 4death4 2y agoReducing variance in a random outcome still has value. For instance, you might have the money to cover an adverse outcome, but if you could guarantee you wouldn't need the money, then you could park it in an illiquid asset (e.g. some type of investment).