Brief Description
In 1961, MIT mathematics professor Ed Thorp made a small Vegas fortune by "counting cards"; his 1962 bestseller, "Beat the Dealer," made the phrase a household word. With Claude Shannon, the father of information theory, Thorp next conquered the roulette tables. In this prosaic but fascinating cultural history, the author tells not only what they did but how they did it.
Learn More about the Book
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.
"
About the Author
William Poundstone is the bestselling author of more than a dozen nonfiction books, including Fortune's Formula, Gaming the Vote and Priceless. His books Labyrinths of Reason and The Recursive Universe were both nominated for the Pulitzer Prize.
Review Quotes
1. Praise for "Fortune's Formula": "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 "(four stars)
"'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"
2. Praise for "Fortune's Formula": " 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 "(four stars)
" ' 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"
3. " 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 (four stars)
" ' 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
4. “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 "(four stars)
“’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 lectu
5. "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 "(four stars)
"'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"
6.
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 (four stars)"
'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""
7.
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 (four stars)
'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
"
