Money and Finance
- Ed Thorp Quote
From the book Hedge Fund Market Wizards: Jack Schwager: What do you think is the biggest mistake people make in the markets? Ed Thorp: Looking to outside sources for guidance in their positions. The belief that you can watch CNBC and get useful advice...
- Ed Thorp, Jack Schwager, And The Kelly Criterion
Excerpt from Jack Schwager’s interview with Ed Thorp in the book Hedge Fund Market Wizards: The Kelly criterion is the fraction of capital to wager to maximize compounded growth of capital. Even when there is an edge, beyond some threshold, larger bets...
- Ed Thorp On Npr (2010)
Thanks to Lincoln for passing this along. In 1962, Ed Thorp became every gambler's favorite mathematician when he published the first mathematically proven method for beating the dealer at blackjack. Thorp's work revolutionized the game. But he...
- Joel Greenblatt Quote (valuation)
“…generally, if you have done good valuation work, 98 percent of the time, two or three years is enough time for the market to agree with you. That is a very powerful concept. It gives you patience. Of course, if you do poor valuation work, you can...
- Seth Klarman Interview
Biggest mistakes?There are too many examples that we could say, “Ah, that was right in our sweet spot, and we should have had it.” All investors need to learn how to be at peace with their decisions. We as a firm are always going to buy too soon and...
Money and Finance
Ed Thorp quote
“If you have a really strong conviction about your edge, then the best thing to do is sit there and take your lumps. If, however, you believe there is a reasonable chance that you might not have an edge, then you better have a safety mechanism that constrains your losses on drawdowns.” –Ed Thorp, as quoted in Hedge Fund Market Wizards
- Ed Thorp Quote
From the book Hedge Fund Market Wizards: Jack Schwager: What do you think is the biggest mistake people make in the markets? Ed Thorp: Looking to outside sources for guidance in their positions. The belief that you can watch CNBC and get useful advice...
- Ed Thorp, Jack Schwager, And The Kelly Criterion
Excerpt from Jack Schwager’s interview with Ed Thorp in the book Hedge Fund Market Wizards: The Kelly criterion is the fraction of capital to wager to maximize compounded growth of capital. Even when there is an edge, beyond some threshold, larger bets...
- Ed Thorp On Npr (2010)
Thanks to Lincoln for passing this along. In 1962, Ed Thorp became every gambler's favorite mathematician when he published the first mathematically proven method for beating the dealer at blackjack. Thorp's work revolutionized the game. But he...
- Joel Greenblatt Quote (valuation)
“…generally, if you have done good valuation work, 98 percent of the time, two or three years is enough time for the market to agree with you. That is a very powerful concept. It gives you patience. Of course, if you do poor valuation work, you can...
- Seth Klarman Interview
Biggest mistakes?There are too many examples that we could say, “Ah, that was right in our sweet spot, and we should have had it.” All investors need to learn how to be at peace with their decisions. We as a firm are always going to buy too soon and...