Edward Thorp is a pretty well known in the gambling scene as well as in the financial markets. Think of him as the mean who not only beat the dealers, but a person who also beat the markets.
Thorp, a professor at MIT in the late 50s, wanted to find a way to get an edge of gambling games like blackjack, baccarat and even roulette. Obviously he won and is now thought of as the father of card counting.
In this Edward Thorp interview, we talk about Edward’s path from his gambling roots to what he does as a trader today. He has a lot of insightful things to say and I wish I had more than 60 minutes with him, though having I’m grateful for the opportunity to speak with him at all.
He has a new book out called “A Man For All Markets” out now.
What’s Covered in This Interview:
- Edward’s story of his childhood all the way to the Great Depression.
- Edward’s first job where his interest in math and science started, including learning how to build bombs.
- How as a math professor at MIT, he became interested in beating the dealer (in games such as blackjack, baccarat and roulette). He also explains why it was never about the money
- How Edward ended up partnering up with Manny Kimmel, an infamous underworld figure and how they were able to more than double a pretty hefty bankroll when they stayed in Las Vegas
- Edward’s story on how casinos during the 60s dealt with card counters and different ways they tried to stop him even though he shared his strategies publicly.
- How Edward attempted to beat the market, his edge in gambling and trading as well as how he utilized Kelly Criterion for money management.
Links and Resources:
- A Man For All Markets – Edward’s book available now
- The Kelly Capital Growth Investment Criterion – A book Edward helped to edit
- Beat the Dealer – Edward’s strategies on card counting
- Casino, 1995