Peter Kaufman’s three-bucket framework, to arrive at universal principles that have high utility …

Peter Kaufman’s three-bucket framework, to arrive at universal principles that have high utility …

From East Coast Asset Management 2014 3rd qtr Letter

Every statistician knows that a large, relevant sample size is their best friend. What are the three largest, most relevant sample sizes for identifying universal principals? Bucket number one is inorganic systems, which are 13.7 billion years in size. It’s all the laws of math and physics, the entire physical universe. Bucket number two is organic systems, 3.5 billion years of biology on Earth. And bucket number three is human history, you can pick your own number, I picked 20,000 years of recorded human behavior. Those are the three largest sample sizes we can access and the most relevant.

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