Positive skew and investor preference. As far as I know, investors prefer to invest in an asset class the distribution of whose returns follows a positive skew pattern. The rationale is investors might not want to be trapped in a few but large negative returns (losses) which happens in a negative skew case. But I have just learned that [Mean of negative skew distribution > Mean of a normal distribution > Mean of a positive skew distribution]. Doesn’t this look a bit obvious that investors are better off on an average by investing in negative skew distribution because despite a few large losses, their more frequent small positive returns will wash out the negative returns over time and they are better off getting a smoothed higher mean return than it is possible with other distribution cases?
I think the opposite is true. Investors prefer positive return distribution not so because they do not want to be 'trapped in in a few but large negative returns" but because even after considering those few big losses they are still on average better off than in the case of normal or negative ditstribution.
The preference for negative distribution means that an investor prefers less to more which is at odds with general assumptions.
I am sure there is miscommunication here. Skewness and mean are just different moments of distribution. In general it would be incorrect to say that the mean grows as skewness becomes more negative. If you share the source of your information and the context, it would be easier to give feedback.