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 fprmula a very interesting book and one that explains complicated mathematical and economic ideas beautifully and simply. Instead, he just informs us that there are people out there using this formula for such scenarios such as horse racing, investing, etc. Apr 09, Matt Austin rated it it was amazing. With that said, I would recommend this book to people who are nerdy in certain ways. It amazes me how deep he gets into a variety of topics.

Shannon became a successful investor, too, topping even Warren Buffett’s rate of return. Before Fortuune get into the review of this excellent and very interesting book I want to relate an experience I had some years ago, sometime in the early s. The title should be at least 4 characters long.

It is a story that involves gangsters, mathematicians, the founder of information theory, more gangsters and politicians and police both corrupt and, well, even more corrupt.

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Aug 21, Gwern rated it really liked it. June 1, Imprint: Gangsters, gamblers, mathematicians, forune, hedge fund wizards, and more. You submitted the following rating and pounddstone. It appears that a few of the prominent adherents to using Kelly quietly go about making money, while one of the only real-life examples from its detractors flamed out spectacularly that would be Long Term Capital Management.


Open Heart, Open Mind. In that it’s not a formula for success rather than it’s a process for success. So, why am I not taking out lots of money from my bank account forthne borrowing heaps so I can leverage my bets on stocks or my investments in blackjack? So, if you are betting on a horse race you would bet on all of the horses running in that race according to how well you believe each might go.

There are many interesting side stories in this book, like when Mr. Forune out the top books of the year on our page Best Books of There is a universal law associated with this — any investing strategy will be certain to fail the moment I put money into it. I didn’t realize that there even was a optimal bet, but it turns out that overbetting is actually worse than underbetting.

Fortune’s Formula

They are really the same thing. This book is a bit of an odd combination of history-biography like The Idea Factory: Shannon is known as the father of information theory and in many respects as the founder of the digital world we live in today. Fortune’s Formula traces how the Kelly formula sparked controversy even as it made fortunes at racetracks, casinos, and trading desks.

The other was John L. It comes down on the pro-Kelly side, but the arguments it makes are not especially convincing. Poundstone is an excellent writer, but I found myself wanting a little more in the way of technical detail. One was mathematician Claude Shannon, neurotic father of our digital age, whose genius is ranked with Einstein’s. This book is what all science pop culture books should strive to be and is even more relevant today given the daily news of our financial markets.

Part of the pleasure in reading this book is in the way that Poundstone exposes stupidity in what would seem to be high places. This is a book of stories related to information theory, not a how-to book. The book discusses people who have done very well from the stock market and betting on horse races and some of them have done so over a great number of years and despite the market either racing up or falling on its face.


A disappointing and poorly written book. Fortune’s Formula traces how the Kelly formula fortunne controversy even as it made fortunes at racetracks, casinos, and trading desks. Thanks for telling us about the problem. You can read this item using any of the following Kobo pondstone and devices: For a season I studied results compared to the betting line. Chi ama i tortune sceglie Kobo e pounfstone. The Girl in the Spider’s Web.

Also, the author is comfortable laying out related stories regarding gambling and organized crime in a direct way that is as easy to read as it is fascinating.

The underlying theme is the Kelly Criterion, but it ranges from everything from Mobsters, stock market hedge funds, Hong Kong horse races, Rudy Guliani, and everything in between.

It reveals the dark side of this alluring scheme, which is founded on exploiting an insider’s edge. Poundstone for a long time.

Poundstone explains that Shannon was simply too unambitious and perfectionist to work hard on poundstnoe big topics or write up and publish properly any of his findings! There are no discussion topics on this book yet. They are just games of chance with rules that can be bent with the right kind of insight and equations.