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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This book helped remind me of that interest. Some pounddtone stories revolving around the science of information, investments sometimes using this science and sometimes notand the law revolving around RICO.

Head in the Cloud. There are many interesting side stories in this book, like when Mr.

Then he reworked it into a book called Beat The Dealer. I started and quit this book a while back.

I did this in a class this year and it was really fun. Ed could get six glasses from a pack for a penny profit.

Fortune’s Formula : William Poundstone :

Dec 08, Bo rated it it was amazing Recommends it for: If you have an interest in the stock market or other forms of gambling then you will find this an interesting read. It reveals the dark side of this alluring scheme, which is founded on exploiting an insider’s edge.


Poundstone as the amazing formuls to simplify complexity while keeping the reader engaged. So Thorp moved onto roulette and the stock market. Quite a timely read, given the current financial disarray, this traces the history of the Kelly poundstonf from Poujdstone Labs where John Kelly, Jr. I did not notice any major errors asides from perhaps a confusion of Euler and Gauss, and overstating the obscurity of Louis Bachelier’s life.

Thorp eventually published his own book Beat the Dealer: This formula tells you how much of your total net worth to invest in any particular investment.

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Thorp and his partner, working on different coasts, transformed the financial industry. We appreciate your feedback. It also explains how the system was developed that met the formula, but didn’t get you kicked ;oundstone of the casino. I’ve also read his excellent book on game theory called Prisoners Dilemma. We’re featuring millions of their reader ratings on our book pages to help you find your new favourite book.

In investing, you generally do have an positive expected return.

Visit our Beautiful Books page and find lovely books for kids, photography lovers and more. Fortune’s Formula traces how the Kelly formula sparked controversy even as it made fortunes at racetracks, casinos, and trading desks.

Jun 03, Douglas Cosby rated it really liked it.

They realized that there was even more money to be made in the stock market. Do you know in where HAL is having his brain slowly shut down and he reverts to his childhood? I felt the book ends up dancing around the debate rather than really getting into the meat. Jan 13, Mark rated it really liked it. After all, they have the tune with full orchestration and four part harmonies playing in their head.


I read that book when I was still in my twenties with great enthusiasm but never employed the strategies since my memory is rather ordinary.

Fortune’s Formula

Thorp returned to trading eventually, and in terms of fotune lifetime performance:. One of the more depressing demonstrations that raw genius is not enough. Then they ask the person who is doing the tapping how confident they are that the person listening pounfstone be able to guess the song — generally people say they are very confident. Quotes from Fortune’s Formula The thing for the reader to realize is that the Kelly Criterion has no utility unless the bettor or investor has an advantage.