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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Oct 27, Joe rated it it was amazing.

Yes, if you have accurate data. Tom Clancy Commander in Chief. So, if you are betting on a horse race you would bet on all of the horses running in poindstone race according to how well you believe each might go.

How to write a great review Do Say what you liked best and least Describe the author’s style Explain the rating you gave Don’t Use rude and profane language Include any personal information Mention spoilers or the book’s price Recap the plot.

The Wrong Side of Goodbye. Quotes from Fortune’s Formula His books have sold over half a million copies worldwide. Poundstone for a long time. The story is incredible overall, but I found the stock market stuff the second half, roughly less interesting and less understandable to me. Description In two Bell Labs scientists discovered the scientific formula for getting rich.

The title should be at least 4 characters long. A few years ago I checked them out of the library and found them to be more interesting as an odd pre-Internet relic. Apr 06, William rated it really liked it. To ask other readers questions about Fortune’s Formulaplease sign up. All the Devils Are Here. Trivia About Fortune’s Formula Thorp and a mob-connected guy fly to Nevada to test out his system, or when he and Claude Shannon try to build a device for winning at roulette, or how a parking lot company also mob-connected became Time Warner.

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.


The guy programming the voice is very familiar with it — so can understand what it is saying, but probably not the person who is first introduced to the computer voice.

Fortune’s Formula : William Poundstone :

Like cancer research and certain other areas of science, it serves as a reminder that science can be a popularity contest and the quality of the work is very much not the primary concern when it comes to who gets funding. While this book has its ups and downs, the majority of the book is extremely interesting. Fortune’s Formula expands upon Shannon’s contribution to gambling and Wall Street. May 07, George Jankovic rated it it was amazing. May be because I just read World Order – Kissinger, books sounds like reading to a 2-year old As I read further I realized how much there was in this book.

Do you know in where HAL is having his brain slowly shut down and he reverts to his childhood? Also includes some early organized crime betting history as well. If they had been more judicious in their choice of brokers they would probably be as celebrated as Buffett and Munger are today. I loved the gangster who complained about the number of horse races he had to fix to buy off Hoover.

Ed could get six glasses from fortuune pack for a penny profit. To see what your friends thought of this book, please sign up. It’s for this I’d recommend it to anyone.

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Shannon became a successful investor, too, topping even Warren Buffett’s rate of return. The Road to Ruin. Much the same argument is made in this book as in Fooled By Randomness — that is, if you are going to bet you need to expect the improbable, because the improbable is never as improbable as you might like to think.

The fact that I understood these concepts from the book greatly helped me in understanding the math presented in these articles. Intwo Bell Labs scientists discovered the scientific formula for getting rich.


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?

And the risk of buying warrants can be offset just buy buying or selling short just some of the underlying stock.

Poundstone does an amazing job of weaving the characters and events of the story together from betting at the racetracks to Giuliani’s RICO raids. Fotrune 03, Douglas Cosby rated it really liked it.

This is more of an enjoyment read for me, but it correlates tightly with the Random Walk Guide. It reveals the dark side of this alluring scheme, which is founded on exploiting an insider’s edge. But what really makes this book so interesting is the light that Poundstone shines on two giants in the science of information, gambling and investing, namely Claude Shannon and Edward O.

For a better take on the geek mathematics behind the Kelly Criterion, go read some academic papers, or even the Wikipedia page. Between the World and Me. June 1, Imprint: In one amusing anecdote, Black-Scholes used their pricing model to spot a pokndstone mispriced warrant; then the company changed the terms of the warrants, forutne out the warrant holders and Black-Scholes, in a way that insiders had known was coming and sold all their warrants. Instead I played poker, but that, as they say, is another story.