I've always believed that the same principles that work at the blackjack table can be applied to the stock market.
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.
View this figure's profile
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.
In the long run, the house always wins — unless you change the game.
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.
Related Quotes
Know what you own, and know why you own it.
-- Peter Lynch
Invest in what you know.
-- Peter Lynch
You can't predict. You can prepare.
-- Howard Marks
The most important thing is being attentive to cycles.
-- Howard Marks
The most important investment decision you will make is how to allocate your assets.
-- David F. Swensen
Investors should pay attention to what they own, not simply to the overall return of their portfolio.
-- David F. Swensen