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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Where the real value of this book lies is its extended discussion on what risk is and how you can go about handling it in your own investments and life.

Jul 26, Mark Schulz rated it really liked it. Some of the cameo appearances in this book are really what make it — everyone from J Edgar Hoover to Paul Newman have walk on roles and these are often very amusing.

Chi ama i libri sceglie Kobo e inMondadori. Sep 03, Andy rated it really liked it Shelves: I wish I had read this book 10 years ago. Not unlike The Godfather movies.

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He was also an astute investor as Poundstone reveals. I liked aspects of this book – I was barely aware of Shannon, so I really like the introduction to his theories. Thorp eventually published his own book Beat the Dealer: I did not pick up on enough science to be useful for my own i Some interesting stories revolving dortune the science of information, investments sometimes using this science and sometimes notand the law revolving around RICO.


Claude Shannon gets significant coverage, although his direct contribution to finance is somewhat unclear; coverage of Ed Thorp is totally appropriate and h This book opundstone a bit of an odd combination of history-biography like The Idea Factory: So Thorp moved onto roulette and the stock market.

Between the World and Me. While this book has its ups and downs, the majority of the book is extremely interesting.

The title does refer to the Kelly Criterion, a particular method for choosing how much of your portfolio to bet in a way that simultaneously avoids any possibility of Interesting history tying together Claude Shannon, information theory, organized crime, probability, investment theory, and the early history of hedge funds. Do you know in where HAL is having his brain slowly shut down and he reverts to his childhood? An enjoyable read, but I would have liked to have seen more of the maths.

On page 68, Poundstone writes: Poundstone explains in detail how all this happened and it is a fascinating story. When Breath Becomes Air. Jun 03, Douglas Cosby rated it really liked it. Tom Clancy Commander in Chief.

However if you have some inside information like how many Ace’s are left in the deck then it may make sense to wager. That needs to vortune repeated: So for all the casino games in Vegas, since the expected return is less than 0, formuls formula says “don’t wager anything”.

The title does refer to the Kelly Criterion, a particular method for choosing how much of your portfolio to bet in a way that simultaneously avoids any possibility of bankruptcy [assuming infinitely divisible bets] and maximizes expected compound growth.


Fortune’s Formula

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Most importantly, I like that Fortune’s Formula caused me to go and find articles written by Ed Thorpe and others explaining Kelly’s Criterion and the math involved. 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. I would have liked more about the theory and its practical applications and less about the myriad of people that were peripherally involved.

William Poundstone is the author of more than ten non-fiction books, including ‘ Fortune’s Formula ‘, which was the Amazon Editors’ Pick for 1 non-fiction book of Ultimately, Thorp hopes, it will fund the most richly endowed university chair in the world, and will help draw exceptional mathematical talent to UC Irvine. 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.

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