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Fortune’s Formula: The Untold Story of the Scientific Betting System that Beat the Casino and Wall Street – William Poundstone
Non-fiction / 18th May 2023

Introduction Fortune’s Formula is mainly about the Kelly criterion. This book was recommended in Richer, Wiser, Happier. The is my third book from its recommended book list. I would like to see what be can learned from this book to apply in the stock market. Author William Poundstone is an American author and columnist. Contents Fortune’s Formula has a prologue (The Wire Service) and 6 parts. As these 6 parts contain quite a lot of chapters, I am not going to list them here. Part One is Entropy. Part Two is Blackjack. Part Three is Arbitrage. Part Four is St. Petersburg Wager. Part Five is RICO. Part Six is Blowing Up. Part Seven is Signal and Noise. Review Fortune’s Formula is more like a biography, rather than an investment book. It features a lot of people, either directly or indirectly involved in the stock markets, including Claude Shannon, the father of information theory, and Edward O. Thorp. It reveals the backers of Edward O. Thorp in Beat the Dealer which Thorp concealed in his book. The main thing that is discussed in this book is the Kelly formula. According to the author, it is the best strategy for a gambler as…