Against the Gods

[justrading]

http://www.bloomberg.com/news/artic...ry-wall-street-intern-should-read-this-summer

 

[globalarbtrader]

If you have to read just one book, I'd suggest Fortunes Formula by william poundstone. Much more entertaining than Bernstein's book as well.

 

[loyek590]

If you have to read just one book, I'd suggest Fortunes Formula by william poundstone. Much more entertaining than Bernstein's book as well.

could you expand?

 

[globalarbtrader]

could you expand?

This is a fascinating book about the sociology of ideas and, specifically, about information theory. Author William Poundstone explores how Claude Shannon, the major developer of information theory, affected finance, investing and gambling. These activities seem disconnected, but they all rely on managing uncertainty. Like any great idea, information theory attracted major personalities: gamblers, mobsters, academics, economists, traders and people who just wanted to make money. The story weaves through a collection of memorable people (from seventeenth-century mathematicians to Ivan Boesky) to present pertinent mathematical and scientific theories, and to explore how people used them. At times, the connections between events seem strained, but they all come together. This book is encyclopedic, exceptionally informative, and packed with great stories and characters. We enthusiastically recommend it to anyone seriously interested in investing, the sociology of ideas, or gambling. Indeed, read it twice: once for its theories and practical investment advice, and the other to relish its personalities.

I stole this from an amazon review, but it's pretty close to how I feel about it.

 

[loyek590]

I stole this from an amazon review, but it's pretty close to how I feel about it.

thanks, I'll check it out

I read Against the Gods many years ago, great book, but nothing real new for those of us that spend every waking moment dealing with risk.

 

[globalarbtrader]

thanks, I'll check it out

I read Against the Gods many years ago, great book, but nothing real new for those of us that spend every waking moment dealing with risk.

I reread fortunes formula over the last few days. It's the kind of book where you find new stuff every time you read it. So for example there was some stuff about Kelly with leverage I hadn't really thought about before.