Founders

What I learned from reading Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street by William Poundstone.----Come see a live show with me and Patrick O'Shaughnessy from Invest Like The Best on October 19th in New York City. Get your tickets here! ----Subscribe to listen to Founders Premium — Subscribers can listen to Ask Me Anything (AMA) episodes and every bonus episode. ---Claude Shannon was as close to a sure thing as existed [2:53]The beginning of information theory [7:11]Project X [9:09]introduction to Ed Thorpe [15:05]using math and physics to beat Las Vegas [18:03]Ed Thorp and Claude Shannon meet [20:45]testing Thorpe’s Blackjack theory [26:00]The core of John Kelly’s philosophy of risk can be stated without math. It is that even unlikely events must come to pass eventually. Therefore, anyone who accepts small risks of losing everything will lose everything, sooner or later. The ultimate compound return rate is acutely sensitive to fat tails. [28:23]I