Exploring the Kelly Criterion and Edward Thorp's Investing Strategies

The chapter covers the Kelly criterion in investing, advocating for risk reduction, and discusses investment approaches of legendary investor Edward Thorp. It emphasizes the importance of risk management, position sizing, and mathematical strategies in investing.

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IN THIS EPISODE, YOU’LL LEARN:

How to beat Blackjack from the person that literally wrote the book on it.
How you should size your positions in the market.
Why Ed Thorp made 20% annually on his portfolio over 30 years.
Why Ed Thorp suddenly found himself playing bridge with Buffett.
How to look young when you are 84 (seriously!).

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Ed Thorp’s book, A Man for all Markets – Read reviews of this book.
Ed Thorp’s book, Beat the Dealer – Read reviews of this book.
Daniel Gardner’s book, Superforecasting – Read reviews of this book.
Paul Cootner’s book, The random character of stock prices – Read reviews of this book.
Preston and Stig’s episode with Jack Schwager about Ed Thorpe.

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