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Edward O. Thorp's Quotes

Overview

Applied mathematics and probability to gambling, arbitrage, and investing.

Style

Probability, arbitrage, position sizing, risk

Firm

Princeton/Newport Partners

Period

1932-

Edward O. Thorp

Quotes

Memorable ideas rewritten as practical investing lessons.

Memorable ideas

Instead of memorizing quotes, convert Edward O. Thorp's ideas into concrete actions. A memorable line only matters if it improves decisions.

Without understanding probability, expected value, and position sizing, even a good strategy can fail from tail risk.

Understand expected value before placing a bet.

Position sizing determines survival.

Look for testable mispricings.

Do not let leverage destroy a statistical edge.