Fortune's Formula: The Untold Story of the Scientific Betting System that Beat the Casinos and Wall Street

Frontcover
Macmillan, 2005 - 386 Seiten
31 Rezensionen
In 1956 two Bell Labs scientists discovered the scientific formula for getting rich. One was mathematician Claude Shannon, neurotic father of our digital age, whose genius is ranked with Einstein's. The other was John L. Kelly Jr., a Texas-born, gun-toting physicist. Together they applied the science of information theory--the basis of computers and the Internet--to the problem of making as much money as possible, as fast as possible.
Shannon and MIT mathematician Edward O. Thorp took the "Kelly formula" to Las Vegas. It worked. They realized that there was even more money to be made in the stock market. Thorp used the Kelly system with his phenomenonally successful hedge fund, Princeton-Newport Partners. Shannon became a successful investor, too, topping even Warren Buffett's rate of return. "Fortune's Formula "traces how the Kelly formula sparked controversy" "even as it made fortunes at racetracks, casinos, and trading" "desks. It reveals the dark side of this alluring scheme, which is" "founded on exploiting an insider's edge.
""
Shannon believed it was possible for a smart investor to beat" "the market--and "Fortune's Formula "will convince you that he was right. William Poundstone is the bestselling author of nine nonfiction books, including "Labyrinths of Reason "and "The Recursive Universe." In 1956 two Bell Labs scientists discovered the scientific formula for getting rich. One was mathematician Claude Shannon, neurotic father of our digital age, whose genius is ranked with Einstein's. The other was John L. Kelly Jr., a Texas-born, gun-toting physicist. Together they applied the science of information theory--the basis of computers and the Internet--to the problem of making as much money as possible, as fast as possible.
Shannon and MIT mathematician Edward O. Thorp took the "Kelly formula" to Las Vegas. It worked. They realized that there was even more money to be made in the stock market. Thorp used the Kelly system with his phenomenonally successful hedge fund, Princeton-Newport Partners. Shannon became a successful investor, too, topping even Warren Buffett's rate of return. "Fortune's Formula "traces how the Kelly formula sparked controversy" "even as it made fortunes at racetracks, casinos, and trading" "desks. It reveals the dark side of this alluring scheme, which is" "founded on exploiting an insider's edge.
""
Shannon believed it was possible for a smart investor to beat" "the market--and "Fortune's Formula "will convince you that he was right. ""Fortune's Formula "may be the world's first history book, gambling primer, mathematics text, economics manual, personal finance guide and joke book in a single volume. Poundstone comes across as the best college professor you ever hand, someone who can turn almost any technical topic into an entertaining and zesty lecture."--"The New York Times Book Review" ""Fortune's Formula "may be the world's first history book, gambling primer, mathematics text, economics manual, personal finance guide and joke book in a single volume. Poundstone comes across as the best college professor you ever hand, someone who can turn almost any technical topic into an entertaining and zesty lecture."--"The New York Times Book Review" "Seldom have true crime and smart math been blended together so engagingly"--"The Wall Street Journal"
"An amazing story that gives a big idea the needed star treatment . . . "Fortune's Formula" will appeal to readers of such books as Peter L. Bernstein's "Against the Gods," Nassim Nicholas Taleb's "Fooled by Randomness," and Roger Lowenstein's "When Genius Failed." All try to explain why smart people take stupid risks. Poundstone goes them one better by showing how hedge fund Long-Term Capital Management, for one, could have avoided disaster by following the Kelly method."--"Business Week" "Poundstone, a two-time Pulitzer Prize nominee, takes us from chalkboard to stock market and back as he explains the 'Kelly formula' for gambling through the lives of those who developed and exploited the system. It is a rollicking tale about money, mathematics and greed."--Bloomberg "A dazzling array of math geniuses, rogues, swindlers, Nobel Prize winners, gun-toting physicists--all massaging the formulas that give them an edge in creating fortunes."--George J. W. Goodman (aka "Adam Smith"), author of "The Money Game and Supermoney" "This is a wonderful tale of how mathematics got married to gambling and went off to honeymoon in Las Vegas, before finding ultimate happiness in the biggest casino of all--the world financial markets. Poundstone has produced a rogues' gallery of mobsters and mathematicians, kneecappers and handicappers, card sharps, professors, systems players, numbers runners, and number crunchers--the best 'investment advisers' you can find. Anyone interested in playing the markets should buy this book and read it immediately."--Thomas A. Bass, author of "The Eudaemonic Pie" and "The Predictors" "The true story of the intertwining lives of financial legends, mathematical geniuses and crooked mobsters. Who would you expect to win an intellectual battle between professional gamblers and Nobel Prize winners? This book confirms what I'd long suspected, that the successful gambler knows more about managing money than the most PhD-laden investment banker. Poundstone's book explains that knowledge, and you'll be surprised by its elegance and simplicity. A fascinating book, both a cracking good yarn and a practical guide for investment success."--Paul Wilmott, mathematician, bestselling author, and editor of "Wilmott" magazine "From bookies to billionaires, you'll meet a motley cast of characters in this highly original, 'outside the box' look at gambling and investing. Read it for the stories alone, and you'll be surprised at how much else you can learn without even trying." --Edward O. Thorp, author of "Beat the Dealer and Beat the Market" "What a fantabulous book! "Fortune's Formula "provides a deep but crystal-clear understanding of information theory, card-counting schemes, plunging necklines, mean-variance mapping, junk bonds sold short and gambler's ruin, all part of an epic suspense tale crowded with eccentric geniuses and cold-blooded killers. You'll never follow a horse race, push forward a casino chip or enter a market the same way again. Read this and weep for the edge you only "thought" that you had, then read it again for a real one."--James McManus, author of "Positively Fifth Street"
  

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Fascinating and educational. - Goodreads
IMHO the best popular mathematical writing ever. - Goodreads
Poundstone's prose is workmanlike at best. - Goodreads

Review: Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street

Nutzerbericht  - Richard - Goodreads

I didn't like this book at first, due to its more simplistic writing style. (May be because I just read World Order - Kissinger, books sounds like reading to a 2-year old) As I read further I realized ... Vollständige Rezension lesen

Review: Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street

Nutzerbericht  - Billy - Goodreads

A fascinating read that ropes in blackjack, horse racing, the Mafia, information theory and mathematics, all in the quest to find a way to beat the house, be it the casino or stock market. Poundstone ... Vollständige Rezension lesen

Inhalt

ENTROPY
13
BLACKJACK
79
ARBITRAGE
115
ST PETERSBURG WAGER
179
RICO
239
BLOWING UP
275
SIGNAL AND NOISE
305
Notes
331
Bibliography
357
Acknowledgments
369
Index
371
Urheberrecht

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Über den Autor (2005)

William Poundstone has been nominated twice for the Pulitzer Prize. Among his seven books are "The Recursive Universe," "Labyrinths of Reason," and "Big Secrets." He has also written extensively for network television and major magazines. He lives in Los Angeles.

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