"These differences in how we value risk help to explain why the derivatives and junk bond and future markets are worth trillions. Smart investors will buy risk

"These differences in how we value risk help to explain why the derivatives and junk bond and future markets are worth trillions. Smart investors will buy risk from people at a discount. Now that would just be interesting if it were not for something really fascinating that it suggest about how corporations could use behavioral psychology and the popularization of entrepreneurship to earn returns that venture capitalists would envy. The prime candidates for entrepreneurial ventures are actually people in their 30s and 40s. Their startups are less likely to fail and reasonably so. They have more experience than people in their 20s and more drive than people in their 50s. They learned about processes and products and people. But they have one major disadvantage in comparison to the twenty-something crowd: they have so much to lose." An insightful piece into Daniel Kahneman's life work. I've always had a fascination with his books and what he writes about socio-economics and the paradoxes we see in the shops all around us. If anyone is ever interested in how money is really made, I'd highly recommend reading his books. Why else would his books be on the reading lists of so many intern / grad banking jobs.