27 quotes
Use "entropy" and you can never lose a debate, von Neumann told Shannon - because no one really knows what "entropy" is.
Fortune's Formula (2005)
The ultimate compound return rate is acutely sensitive to fat tails.
Fortune's Formula (2005)
Your second ducat, like your second million, is never quite as sweet.
Fortune's Formula (2005)
In real conversations, we are always trying to outguess each other.
Fortune's Formula (2005)
For reasons mathematical, psychological, and sociological, it is a good idea to use a money management system that is relatively forgiving of estimation errors.
Fortune's Formula (2005)
Samuelson, however, hedged his personal bets - by putting some of his own money in Berkshire Hathaway.
Fortune's Formula (2005)
The best strategy is one that offers the highest compound return consistent with no risk of going broke.
Fortune's Formula (2005)
The story of the Kelly system is a story of secrets - or if you prefer, a story of entropy.
Fortune's Formula (2005)
The problem with winning at blackjack and sports betting is that sooner or later a big guy in a suit tells you to leave.
Fortune's Formula (2005)
Expectation is a statistical fiction, like having 2.5 children.
Fortune's Formula (2005)
Far from preventing gambler's ruin, martingale accelerates it.
Fortune's Formula (2005)
To hedge the bets he made every working day, Meriwether kept a set of rosary beads in his briefcase.
Fortune's Formula (2005)
Samuelson spotted a mistake in Bacheliers work. Bachelier's model had failed to consider that stock prices cannot fall below zero.
Fortune's Formula (2005)
The more improbable the message, the less "compressible" it is, and the more bandwidth it requires. This is Shannon's point: the essence is its improbability.
Fortune's Formula (2005)
Kelly was aware that there is one type of favorable bet available to everyone; the stock market.
Fortune's Formula (2005)
Shannon's most radical insight was that meaning was irrelevant.
Fortune's Formula (2005)
A bit is worth 10,000 basis points.
Fortune's Formula (2005)
Bernoulli's real contribution was to coin a word. The word has been translated into English as "utility". It describes this subjective value people place on money.
Fortune's Formula (2005)
The dealer now theorized that Thorp was memorizing the entire deck. He knew exactly which cards remained in the deck and bet accordingly.
Thorp said it was impossible for any one to do that.
Fortune's Formula (2005)
By the mid-1930s, Moe Annenburg was AT&T's fifth largest customer.
Fortune's Formula (2005)