THE UNTOLD STORY OF THE SCIENTIFIC BETTING SYSTEM

THAT BEAT THE CASINOS AND WALLSTREEET

William Poundstone

Fortune’s Formula

About the BookWilliam PoundstoneNon-fiction400 pagesPublished in 2005

What’s it about?Risk managementMobstersBlackjack, rouletteArbitrageHedge fundsMathematical modeling

OVERVIEW

Ed ThorpMIT mathematicianDeveloped “card counting” in blackjackSuccessful hedge fund manager

John KellyDeveloped the “Kelly formula”Quantifies economic advantages

Claude ShannonSuccessful investorFrom 1966-1986, produced returns of 28%

CHARACTERS

THE END