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

By William Poundstone
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"Fortune's Formula" by William Poundstone is a captivating exploration into the world of mathematics and finance. Drawing upon the life and work of mathematician Claude Shannon, Poundstone reveals the hidden formula behind successful gambling and investing.

In this thought-provoking book, Poundstone takes readers through the development and application of the Kelly Criterion, a mathematical strategy that can be used to optimize investment decisions. He provides insights into the history of gambling and the stock market, showing how the Kelly Criterion has been successfully employed by renowned gamblers and investors.

Poundstone delves into the risks and rewards of using the Kelly Criterion, demonstrating its potential to achieve remarkable returns, as well as its inherent dangers if misused. He underscores the importance of managing risk and applying the formula with discipline and diligence.

With engaging storytelling and well-researched examples, "Fortune's Formula" offers a unique perspective on the relationship between mathematics and investing. It invites readers to contemplate the potential for applying mathematical principles to enhance their own financial decision-making.

Through his exploration of the Kelly Criterion and its real-world applications, Poundstone reveals a formula that challenges conventional wisdom and provides a fresh perspective on achieving success in the world of finance. "Fortune's Formula" is a must-read for anyone interested in the intersection of mathematics and investment strategy.
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