In the long run, the house always wins — unless you change the game.
Investors
Edward O. Thorp
Born in 1932 in Chicago, Edward O. Thorp is a mathematician who first established the card-counting system for blackjack in his book Beat the Dealer, then applied probability theory to financial markets — co-developing the first wearable computer with Claude Shannon along the way. He created the prototype for quantitative investing, proving that 'mathematics can win' at both the casino and on Wall Street.
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Edward O. Thorp's Other Quotes
To succeed in the market, as in blackjack, you need an edge, you need to know how to size your bets, and you need the discipline to stick with the system.
The key to the Kelly criterion is that it tells you how much to bet, which is just as important as knowing what to bet on.
I've always believed that the same principles that work at the blackjack table can be applied to the stock market.