William Poundstone - Kelly Quotes

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There is a deep connection between Bernoulli's dictum and John Kelly's 1956 publication. It turns out that Kelly's prescription can be restated as this simple rule: When faced with a choice of wagers or investments, choose the one with the highest geometric means of outcomes.

William Poundstone

The engine driving the Kelly system is the "law of large numbers." In a 1713 treatise on probability, Swiss mathematician Jakob Bernoulli propounded a law that has been misunderstood by gamblers (and investors) ever since.

William Poundstone

Kelly was aware that there is one type of favorable bet available to everyone; the stock market.

William Poundstone

The story of the Kelly system is a story of secrets - or if you prefer, a story of entropy.

William Poundstone