Edward Thorp is a Mathematician, professor, Scientist, Author, hedge fund manager, Gambler, and Teacher all rolled in one. He was born in Chicago, Illinois, on August 14, 1932. The 90-year-old thespian Edward Thorp has a net worth of $800 Million and has many inventions to his name, including the title of the father of the first wearable computer, which he perfected in 1961.
Edward Thorp – Pioneer Of Card Counting
Edward Thorp is better known for perfecting the modern applications of probability theory, including connecting minimal correlations for reliable financial gain. He was also the first scientist to use mathematics to turn the tables of house advantage in Blackjack by counting cards. His findings found widespread use of effective hedge fund techniques in the financial markets.
His academic career is scintillating, and he has many laurels. He obtained his Ph.D. in mathematics from the University of California, Los Angeles, in 1958 and worked at the Massachusetts Institute of Technology (MIT 1959-61). He briefly worked as a professor of mathematics from 1961-65 at New Mexico State University.
Edward Thorp used the IBM calculating machine
Subsequently, he worked at the University of California, Irvine, where he was a professor of mathematics from 1965-77 and mathematics and finance from 1977-82. Edward Thorp used the IBM calculating machine to calculate the probabilities of double down, stand, hit, or split actions. All the above steps are concluded when cards were already dealt; the dealer’s face-up card and the player’s cards.
In a nutshell, the theory was not to win every hand but to surge a bet if it is favorable towards the players and reduce the stake when the chances are not good. The legendary MIT Blackjack team widely employed the above theory and significantly increased its fortunes.
A lot of research and outstanding work found fruition in the form of the book Beat the Dealer (1962). It became a best seller and soon became one of the critical treatises on BlackJack.
Edward Thorp Must-Read Books
After carving a niche in Casino Games, Thorpe turned to the world of investment and finance and used his mathematical genius to sniff out price anomalies. With his partner, J. Regan developed simple and efficient methods of earning money on stocks. He perfected his theory and soon found utterance in the book “Beat the Market” (1967). His other notable books include:-
- “A Man for All Markets: Beating the Odds, from Las Vegas to Wall Street.”
- “Elementary Probability.
- “The Mathematics of Gambling”.
- “Beat the Market: A Scientific Stock Market System.”