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| | Fortune s Formula : The Untold Story of the Scientific Betting System That Beat€ 8.50
Fortune s Formula is a fascinating study of the connections between such seemingly unrelated topics as gambling, information theory, stock investing, and applied mathematics.
As Poundstone ably demonstrates, the merits of Kelly s criterion are still hotly debated today.
Poundstone has a tendency to meander in his writing, but his asides are so revealing and interesting that they add, rather than detract, from the narrative.
In explaining the lasting impact of the work done by Shannon, Thorpe, and Kelly, Poundstone even explains Kelly s system for those wishing to follow his formula, offering readers both theoretical and practical lessons.
Later, they took it to Wall Street and cleaned up - Shannon made a personal fortune while Thorpe created the highly successful hedge firm Princeton - Newport Partners.
The book also includes a cast of fascinating and colorful characters as varied as Ivan Boesky, Warren Buffet, Rudolph Giuliani, and notorious mobsters such as Bugsy Siegel and Meyer Lansky.
The story involves the stunning brainpower of men such as MIT professor Claude Shannon, who single - handedly invented information theory, the science behind the Internet and all digital media; Ed Thorpe; and John Kelly of Bell Laboratories, who developed the "Kelly criterion, " a now - legendary investment strategy for maximizing growth while controlling risk. Initially, Shannon and Thorpe took Kelly s theory to Las Vegas and applied it to roulette and blackjack.
They both discovered that Kelly s system was particularly effective when applied to arbitrage (minute price differences that result from market inefficiencies).
Whether viewed as a how - to guide or straight scientific and financial history, Fortune s Formula proves an entertaining and illuminating analysis of "the most successful gambling system of all time." - Shawn Carkonen .
- 2 Bewertungen: 5.0
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Fortune s Formula : The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street
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| | | | On the role of probability as a theory in casino games, finance and information
This book is a chronicle about what information theorists, gangsters and politicians have in common, but not only. Among many other things, it introduces some non trivial concepts of ruin theory that are captivating. Personally, it has been my first encounter with the 'Kelly criterion'. The author has an incredible talent to decompose the most advanced ideas and to present them in a very accessible way. In fact, it is a very dense text with respect to the information it contains. And it is not information that is to be found commonly in other books on finance or randomness.
| | Inside Info on How the Market Got Beat
This is a fascinating book about the sociology of ideas and, specifically, about information theory. Author William Poundstone explores how Claude Shannon, the major developer of information theory, affected finance, investing and gambling. These activities seem disconnected, but they all rely on managing uncertainty. Like any great idea, information theory attracted major personalities: gamblers, mobsters, academics, economists, traders and people who just wanted to make money. The story weaves through a collection of memorable people (from seventeenth-century mathematicians to Ivan Boesky) to present pertinent mathematical and scientific theories, and to explore how people used them. At times, the connections between events seem strained, but they all come together. This book is encyclopedic, exceptionally informative, and packed with great stories and characters. We enthusiastically recommend it to anyone seriously interested in investing, the sociology of ideas, or gambling. Indeed, read it twice: once for its theories and practical investment advice, and the other to relish its personalities.
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