40+ Edward O. Thorp Quotes Unveiling the Mind of a Mathematical Genius

Edward O. Thorp is a renowned mathematician, author, and hedge fund manager. He is best known for his work in the field of quantitative finance and his contributions to the development of modern card counting techniques in blackjack. Thorp's specialty lies in applying mathematical principles to gain an edge in gambling and investment strategies. His groundbreaking research and innovative thinking have revolutionized the way we approach risk and probability in financial markets. Following is our collection on famous quotes by Edward O. Thorp on education, mathematics, finance.

Top 10 Edward O. Thorp Quotes

1. One of my great pleasures from the study of investing, finance, and economics is the discovery of insights about people and society.
2. Do not assume that what investors call momentum, a long streak of either rising or falling prices, will continue unless you can make a sound case that it will.
3. Understanding and dealing correctly with the trade-off between risk and return is a fundamental, but poorly understood, challenge faced by all gamblers and investors.
4. With time, lucky managers tend to fade.
5. Thousand-dollar-an-hour New York professionals who pay $50 an hour for a car and driver so they can work while they commute understand clearly the monetary value of their time.
6. To beat the market, focus on investments well within your knowledge and ability to evaluate, your 'circle of competence'.
7. Write down everything you spend. The waste in your daily spending should soon become apparent.
8. It doesn’t pay to push the other party to their absolute limit. A small extra gain is generally not worth the substantial risk the deal will break up.
9. Be aware that information flows down a 'food chain', with those who get it first 'eating' and those who get it late being eaten.
10. True success is exiting some rat race to modulate one’s activities for peace of mind.

Edward O. Thorp Short Quotes

• Simplify rules, regulations, and laws. Get government out of the business of micromanaging.
• I also learned the value of withholding judgement until I could make a decision based on evidence.
• Education builds software for your brain.
• Check the evidence. Check the basis of conventional beliefs.

Edward O. Thorp Quotes About Investing

A small extra gain is generally not worth the substantial risk the deal will break up. — Edward O. Thorp

I find that retirement savings is individual specific. There’s not one cookie-cutter answer for everybody. — Edward O. Thorp

There are inefficiencies in the market, but they’re not easy to demonstrate, and I think that needs to be done before one shifts money in that direction. — Edward O. Thorp

Do not assume that what investors call momentum… will continue unless you can make a sound case that it will. — Edward O. Thorp

Casino gambling with a system where you have the edge is a wonderful teacher for elementary money management. — Edward O. Thorp

Edward O. Thorp Famous Quotes And Sayings

When the interests of the salesmen and promoters differ from those of the client, the client had better look out for himself. This is the well-known agency problem in economics, where the interest of the agents or managers don’t coincide with those of the principals, or owners. — Edward O. Thorp

To get an idea of what your time is worth, take a moment now to think about how much you work and the income you get from your effort. Once you know your hourly rate you can identify situations where buying back some of your time is a bargain and other situations where you want to be selling more of your time. As you get used to thinking this way, I predict that you will often be surprised at how much you can gain. — Edward O. Thorp

Our corporate executives speculate with their shareholders’ assets because they get big personal rewards when they win—and even if they lose, they are often bailed out with public funds by obedient politicians. We privatize profit and socialize risk. — Edward O. Thorp

In its simplest form, investors sell losing stocks before the end of the current year, realizing losses that reduce the year’s income taxes. This behavior contributes to the so-called January effect where selling pressure in December further depresses the stock prices of the year’s losers, followed by a rebound and excessive performance in January. — Edward O. Thorp

Simple probability and statistics should be taught in grades kindergarten through twelve and that analyzing games of chance such as coin matching, dice, and roulette is one way we can learn enough to think through such issues. — Edward O. Thorp

In the abstract, life is a mixture of chance and choice. Chance can be thought of as the cards you are dealt in life. Choice is how you play them. I chose to investigate blackjack. As a result, chance offered me a new set of unexpected opportunities. — Edward O. Thorp

The classic view of the correct price of a common stock is that it is derived from the value of all the future earnings. These earnings are uncertain and subject to unknowable factors. — Edward O. Thorp

You need to do some independent thinking, especially about the important things, and try to work them out for yourself. — Edward O. Thorp

In the abstract, life is a mixture of chance and choice. Chance can be thought of as the cards you are dealt in life. Choice is how you play them. — Edward O. Thorp

Shortsighted things that people sometimes do for their individual self-interest don’t tend to work out well in the long run. — Edward O. Thorp

I don’t object to some people being richer, even much richer, than others. I object to gain of wealth through political connections rather than earning it by merit. — Edward O. Thorp

Life is like reading a novel or running a marathon. It’s not so much about reaching a goal but rather about the journey itself and the experiences along the way. — Edward O. Thorp

You can trade money for time by working less and buying goods and services that save time. Hire household help, a personal assistant, and pay other people to do things you don’t want to do. — Edward O. Thorp

I don’t object to some people being richer… I object to gain of wealth through political connections rather than earning it by merit. — Edward O. Thorp

Chose young smart people just out of university because they were not set in their ways from previous jobs. Better to teach a young athlete who comes fresh to his sport than to retrain one who has learned bad form. — Edward O. Thorp

Just because a lot of people say something is true, that doesn’t carry any particular weight with me. — Edward O. Thorp

Nassim Taleb asked why, after a driver crashes his school bus, killing and injuring his passengers, he should be put in charge of another bus and asked to set up new safety rules. — Edward O. Thorp

The lesson of leverage is this: Assume that the worst imaginable outcome will occur and ask whether you can tolerate it. If the answer is no, then reduce your borrowing. — Edward O. Thorp

If a basketball franchise pays my neighbor Kobe Bryant $20 million a year because it takes that much to get him, fine. But if hedge fund managers bribe politicians to put a clause in the laws cutting the tax rate on much of their income to a fraction of the percentage the average worker pays, I object. — Edward O. Thorp

If you are like me and want better health, you can invest time and money on medical care, diagnostic and preventive measures, and exercise and fitness. For decades I have spent six to eight hours a week running, hiking, walking, playing tennis, and working out in a gym. I think of each hour spent on fitness as one day less that I’ll spend in a hospital. — Edward O. Thorp

In order to attract and keep superior staff, I paid wages and bonuses well above the market rate. This actually saved money because my employees were far more productive than average. — Edward O. Thorp

Life Lessons by Edward O. Thorp

1. Embrace the power of mathematics: Thorp's career exemplifies the importance of mathematics in understanding and navigating complex systems. He teaches us that by harnessing mathematical principles, we can gain a deeper understanding of the world around us and make more informed decisions in our work and studies.
2. Think outside the box: Thorp's ability to think creatively and challenge conventional wisdom has been instrumental in his success. He encourages us to question established norms and explore new possibilities, as this can lead to groundbreaking discoveries and innovative solutions.
3. Take calculated risks: Thorp's work in gambling and finance has taught him the value of taking calculated risks. He emphasizes the importance of thorough analysis and careful planning before making decisions, reminding us that calculated risks can often yield the greatest rewards.