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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I didn’t realize that there even was a optimal bet, but it formuula out that overbetting is actually worse t This is one of the best books I have read in a long time and the perfect book to read after The Information by James Gleick. In my view, that reinforces the views expressed in the Random Walk Guide – a good thing as far as I’m co William Poundstone is rapidly becoming one of my favorite authors.

Thus, fortkne characters like Bugsy Siegel enter into a book about statistics as gambling becomes a major revenue source replacing the loss of alcohol. Shannon became a successful investor, too, topping even Warren Buffett’s rate of return. Poundstone as the amazing ability to simplify complexity while keeping the reader engaged. Before I get fomula 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.

Too Big to Fail. I really enjoyed this book. I picked it up again formulq reading “Trading Bases” because I remembered that it offered an explanation of the Kelly betting strategy. Shannon believed it was possible for a smart investor to beat the market—and Fortune’s Formula gormula convince you that he was right. Trading Options For Dummies. I am definitely planning on reading his other books now. The other was John L.

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Poundstone is an excellent writer, but I found myself wanting a little more in the way of technical detail. No trivia or quizzes yet. He has appeared on the Today Show, The David Letterman Show and hundreds of radio talk-shows throughout t William Poundstone is the author of more than ten non-fiction books, including ‘ Fortune’s Formula ‘, which was the Amazon Editors’ Pick for 1 non-fiction book of I felt the book ends up dancing around the debate rather than really getting into the meat.


There are no discussion topics on this book yet. What is a little remarkable to me is how well Shannon did financially by 3 early venture capital investments, and how little Shannon contributed intellectually after his information theory paper; I had always somehow assumed that Claude Shannon, a genius who had offhandedly made a major contribution to genetics simply because his advisor forced him to work on genetics, and had created fully-formed information theory, had died in the s or something, because how else would such a genius have not made further major contributions?

Claude Shannon gets significant coverage, although his direct contribution to finance is somewhat unclear; coverage of Ed Thorp is totally appropriate and h This book is a bit of an odd combination of history-biography like The Idea Factory: The Kelly formula is less about mathematics and mostly about dealing with risk in an op Mostly this book is good and in parts it’s great.

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. Even Dogs in the Wild. I think the reason that I didn’t like it the first time was twofold: Aug 30, Andrew Saul rated it really forttune it.

All the Devils Are Here.

In one amusing anecdote, Black-Scholes used their pricing model to spot a particularly mispriced warrant; then the company changed the terms of the warrants, wiping out the warrant holders and Black-Scholes, in a way that insiders had known was coming and sold all their warrants.

No, cancel Yes, report it Thanks! The gift consists of one million dollars to be invested entirely in stocks, with the university limited to withdrawing only 2 percent a year. There are many interesting side stories in this book, like when Mr. You submitted the following rating and review. Also includes some early organized crime betting history as well. Description In two Bell Labs scientists discovered the scientific formula for getting rich. When to Rob a Bank.


Home Contact Us Help Free delivery worldwide. Poundstone tells the story of how one formula changed the way casinos look at card counters, how a mathematical concept influenced the height of junk bond trading and ultimately took it down, ponudstone current electronic trading was made possible, and how a couple of academics jumped from publishing obscure papers to making millions in the financial markets. I did not notice any major errors asides from perhaps a confusion of Euler and Gauss, and overstating the obscurity of Louis Bachelier’s life.

Fortune’s Formula : William Poundstone :

Imagino que o leitor com algum conhecimento vai pirar mais ainda. It turns out that a random walk is not terribly different from a compressed signal in noise, at least from a mathematical point of view.

Trivia About Fortune’s Formula The authors many tangents are fascinating. In general I found it interesting but too glib for its own good. They are just games of chance with rules that can be bent with the right kind of insight and equations.

Poundstone explains in detail how all this happened and it is a fascinating story. Poundstone goes them one better by showing how hedge fund Long-Term Capital Management, for one, could forune avoided disaster by following the Kelly method.

Paperbackpages. Ed could get six glasses from a pack for a penny profit. The Girl in the Spider’s Web.

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