Investing is an Identity

We can only really invest in a way that is coherent to our story of self, our identity.

The best identity to have to maximize ultimate long term value is an immortal vampire that never gets bored.

For the rest of us, our identities change... a lt.

A bachelor's degree is 4 years. If you're part of an investing club are you really interested in strategies that take a decade to show progress? No, you want to impress your friends, your classmates, and potential dating partners. All who will change within 4 years upon graduation.

Same with a career. You have milestones to hit like buying a car, living without roommates, getting married, buying a house, starting a family etc...

Each of these milestones is a meaningful change in identity and they are measured in single digit years.

So for many people it makes sense to chase high volatility strategies because these are the only strategies that make sense when we want and need change.

Even if the volatility has negative expected return.

Many things that seem "irrational" like investing in memes, hail maries, off-meta strategies, voting for a crazy politician, etc... are actually rational within this context.