Fortune's Formula

[imported_Chuck Weinstock]

I have just finished reading Fortune's Formula by William Poundstone. This is a terrific book that is essentially about the Kelly Criterion and those who believe in it and those (like Paul Samuelson) who don't. The book is more about the stock market and hedge funds than about gambling, but of course they are the same thing.

The book starts with the value of information and the private race wires and moves on to the mob and the Kinney Parking -> Time Warner connection. AT&T labs, with Claude Shannon and John Kelly are there, as is Ed Thorp and (eventually) Long Term Capital Management, Michael Milken, Ivan Boesky, Rudy Gulliani, etc.

I'll be adding it to the ConJelCo catalog but whether you buy it there or not, I highly recommend this book.

Chuck