At a bare minimum, understanding entails being able to detect an internal contradiction: a paradox. William Poundstone More Quotes by William Poundstone More Quotes From William Poundstone A bit is worth 10,000 basis points. William Poundstone bases bits The story of the Kelly system is a story of secrets - or if you prefer, a story of entropy. William Poundstone entropy secret stories 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 choices simple mean 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 misunderstood law numbers The ultimate compound return rate is acutely sensitive to fat tails. William Poundstone sensitive return tails
