Kelly's Law

Kelly's Law states that the best way to invest resources—like time or money—is to allocate them proportionally to the expected benefit or probability of success. In practical terms, it advises balancing risk and reward by investing more where the chances of success are higher and less where the chances are lower. This approach aims to maximize long-term growth while minimizing the risk of overcommitting to unlikely outcomes. Originally developed for gambling and investments, Kelly's Law can also be applied to personal decisions and resource management, helping to optimize outcomes through strategic, data-driven allocation.