Fortune’s Formula: Make Favorable Bets on the Stock Market w/ Shawn O’Malley (MI374)

Описание: Shawn O’Malley discusses a formula used by top investors to beat the market averages by maximizing wealth over time.

You’ll learn about the Kelly formula, its origins at Bell Labs, how Ed Thorpe used it in Las Vegas, successful investors who have used it, defining an "edge" in investing, controversies, and why it's not widely known.

IN THIS EPISODE, YOU’LL LEARN:
0:00:00 - Intro
0:03:47 - The origins of the esteemed Bell Labs and how its research led to the Kelly - formula’s creation
0:15:56 - How to define and use the Kelly formula
0:19:07 - Why the Kelly formula is helpful
0:19:45- Why there are limits to the Kelly formula
0:21:35 - How Ed Thorpe beat the dealer and the markets with the Kelly formula
0:34:14 - How Claude Shannon’s approach to beating the markets with the Kelly formula differed from Thorpe’s
0:35:12 - What it means to have an edge in markets
0:39:44 - Why the Kelly formula is controversial
0:39:31 - How to think about your own edge in markets
0:46:16 - Why the Kelly formula isn’t better known

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📖 BOOKS MENTIONED:
Fortune’s Formula by William Poundstone: https://amzn.to/407JLGL
Beat the Dealer by Ed Thorpe: https://amzn.to/3YvnEcm
The Outsiders by William Thorndike: https://amzn.to/3Ysx6Ny

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