05_never_again
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We actually think of money and risk the same way. I think anybody in Acuna's position would.If you think of it as a math problem where the goal is to assign percentages of risk and draw a curve to express expected total incomes, then yeah, he's probably leaving a lot of money on the table. If you think of money as a guarantor of security where the additional utility of each extra dollar curves down after the first few million until it nears zero after, say, $100 million, then you take the guarantee now.
I think where we differ is that I believe Acuna has a guarantor of security, for all intents and purposes, no matter what. You think his chances of ending up with effectively zero is much higher than I do. Of course there's the possibility of something happening to him that is career ending, and he has a higher probability of a career ending injury than say, an accountant, but that's what insurance is for.
Having said all of this, I don't blame him a bit for doing a deal now. I mean, he's a kid from Venezuela and a MLB team just said "here's $100m." Can't really argue that it is a mistake for him to do that.
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