109: Edward Thorp The Man Who Beat the Dealer, and Later, Beat the Market

Published: Jan. 26, 2017, 5:50 a.m.

b'I\\u2019m not sure how to best say this, but Edward Thorp, is kind of a big deal\\u2026\\nNot only in the world of financial markets, but he\\u2019s also a household name amongst the gambling scene. He\\u2019s the man who beat the dealer, and later, beat the market.\\nIt was during the late-50\\u2019s and early-60\\u2019s, when Ed, a math genius and professor at MIT, took on the challenge of discovering a way to get an edge playing gambling games such as blackjack, roulette and baccarat. Long story short; Ed won\\u2014and he\\u2019s now considered the father of card counting.\\nFrom there, the next obvious move for Ed was to take on financial markets\\u2014which he also did with a great degree of success. His first hedge fund, Princeton Newport Partners, achieved an annualized return of 19.1% (before fees) over a 19-year period, with 227 of 230 months being profitable\\u2014the worst monthly loss being less than 1%.\\nEd\\u2019s most recent book, A Man For All Markets, is now available on Amazon.\\n--\\nSponsored by TradeStation.com \\u2013 The online broker for professional market monitoring tools, an award-winning platform and low trading costs.\\nLearn more about your ad choices. Visit megaphone.fm/adchoices'