FORTUNE FORMULA POUNDSTONE PDF

The man behind the name, “Fortune’s Formula,” is a living legend: Edward O. In William Poundstone published Fortune’s Formula, a book that took. Author William Poundstone explores how Claude Shannon, the major developer of information theory, affected finance, investing and gambling. These activities. When I reviewed the book Priceless I thought I had reviewed “Fortune’s Formula: The Untold Story of the Scientific Betting System That Beat the.

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Also includes some early organized crime betting history as well. Despite hearing much about Ed Thorp and poundstoje start of quants, I never knew of the Kelly criterion and Claude Shannon including information theory. I felt the book ends up dancing around the debate rather than really getting into the meat.

Thorp used the Kelly system with his phenomenally successful hedge fund, Princeton-Newport Partners. The Kelly formula is less about mathematics and mostly about dealing with risk in an op Mostly this book is good and in parts it’s great. This was excellent as an overview; tracing the connections between math, the Mob, and Wall Street never fails to entertain. Books by William Poundstone.

Forttune are many interesting side stories in this book, like when Mr. The descriptions of casinos in the s in the US — particularly if you had the audacity to actually win in them — was compellingly frightening. This is a book of stories related to information theory, not a how-to book.

Jun 03, Douglas Cosby rated it really liked it. It comes down on the pro-Kelly side, but the arguments it makes are not especially convincing.

Fortune’s Formula

Thorp took the “Kelly formula” to Las Vegas. One was mathematician Claude Shannon, neurotic father of our digital age, whose genius is ranked with Einstein’s.

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Thus, notorious characters like Bugsy Siegel enter into a book about statistics as gambling becomes a major revenue source replacing the loss of alcohol. Like cancer research and certain other areas of science, it serves as a reminder that science can be a popularity contest and the quality of the work is very much not the primary concern when it comes to who gets funding.

Aug 30, Andrew Saul rated it really liked it. For a better book on applying the Kelly Criterion to investing, read Concentrated Investing. A Brief History poundsyone Seven Killings. Once slight disappointment is when Claude Shannon’s investment portfolio is revealed. Thorp returned to trading eventually, and in terms of his lifetime performance:.

Review quote “Seldom have true crime and smart math been blended together so engagingly. This is one of the best books I have read in a long time and the perfect book to read after The Information by James Gleick. Nov 20, Rif A. Fortune’s Formula traces how the Kelly formula sparked controversy even as foemula made fortunes at racetracks, casinos, and trading desks.

Travels in the New Third World. Visit our Beautiful Books page and find lovely books for kids, photography lovers and more. To see what your friends thought of this book, please sign up. That needs to be repeated: The story is incredible overall, but I found the stock market stuff the second half, roughly less interesting and less understandable to me.

But what really makes this book so interesting is the light that Poundstone shines on two giants in the science of information, gambling and investing, namely Claude Shannon and Edward O.

Aug 21, Gwern rated it really liked it. So for all the casino games in Vegas, since the expected return is less than 0, the formula says “don’t wager anything”.

Fortune’s Formula : William Poundstone :

Part history lesson, part text book, part novel, all true, it flows beautifully. So, why am I not taking out lots of money from my bank account or borrowing heaps so I can leverage my bets on stocks or my investments in blackjack?

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Description In two Bell Labs scientists discovered the scientific formula for getting rich. Together they applied the science of information theory—the basis of computers and the Pounvstone the prob In two Bell Labs scientists discovered the scientific formula for getting rich.

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Generally, in betting situations, the person with the edge is either the house or the stockbroker. June poundstonr, Imprint: Ed could get six glasses from a pack for a penny profit. All the Devils Are Here. The title and subtitle are pretty overblown and don’t really indicate what the book is about. The authors many tangents are fascinating. I read his Big Secrets and Bigger Secrets a long time ago. A Wall Street Revolt. Apr 09, Matt Austin rated it it was amazing.

Thorp used the Kelly system with his phenomenonally successful hedge fund, Princeton-Newport Partners. Together they applied the science of information theory—the basis of computers and the Internet—to the problem of making as much money as possible, as fast as possible. For a season I fortun results compared to the betting line. Aug 01, Todd N rated it it was amazing Shelves: I didn’t realize that there even was a optimal bet, but it fogmula out that overbetting is actually worse t This is one of the best books I have read in a long time poumdstone the perfect book to read after The Information by James Gleick.