Fortune's Formula
The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street
in:
Investing
Summary:
The book delves into the history and application of the Kelly criterion, a mathematical formula developed by Bell Labs scientist John Kelly to determine the optimal size of a series of bets. It explores how this formula was used by gamblers and investors, including Ed Thorp and Warren Buffett, to maximize wealth while minimizing risk in both casino gambling and the stock market.
Key points:
1. Kelly Criterion: A formula by John Kelly for determining optimal bet sizes to maximize wealth growth, used in gambling and investing.
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