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The name Daniel Bernoulli is not as celebrated in investment circles as it probably should be. A true ‘Renaissance Man’, Bernoulli was an 18th Century Swiss mathematician who was also, in the words of the Victorian statistician Francis Galton, “physician, botanist, and anatomist, writer on hydrodynamics; very precocious”. He also has a good claim to be one of the world’s first behavioural economists. Bernoulli’s (investment) thesis was that people ascribe different values to risk; crucially, we are not all the same. He then went on to observe, as Peter L. Bernstein tells us in his magisterial Against the Gods: the remarkable story of risk, that..

J'accuse