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

In 1956 two scientists, Claude Shannon; & John Kelly, Jr., discovered the scientific formula for getting rich. They applied the science of info. theory -- the basis of computers & the Internet -- to the problem of making as much money as possible. Shannon & Ed Thorp took the ¿Kelly formula¿ to the roulette & blackjack tables of Las Vegas. It worked. They realized that there was even more money to be made in the stock market, esp. in arbitrage. Thorp used the Kelly system with his successful hedge. This book traces how the Kelly formula sparked controversy even as it made fortunes at racetracks, casinos, & trading desks. The cast of characters includes: J. Edgar Hoover, Rudolph Giuliani, Michael Milken, & Warren Buffett.Poundstone, William is the author of 'Fortune's Formula : The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street', published 2007 under ISBN 9781422368107 and ISBN 1422368106.