Edward O. Thorp

Edward O. Thorp is one of the most influential authors in the field of mathematics and gambling. He is most famous for his book Beat the Dealer, which revolutionized the way people looked at gambling and blackjack. He was an applied mathematician and professor of mathematics at the University of California, Irvine, and has written several books on mathematics, gambling, and investment theory.

Thorp's career began in the early 1950s, when he was still a graduate student at the University of California, Los Angeles. After discovering an article in the Journal of American Association of Individual Investors that proposed a simplified version of the Kelly criterion, Thorp began to explore the world of gambling and financial investments in earnest.

He developed a system for card counting in blackjack, and in 1961 used the system to win at Las Vegas casinos and win tens of thousands of dollars in the process. He published his card counting system in the book Beat the Dealer, which became an instant bestseller and the gold standard for gambling strategies. His technique earned him adoration from fellow gamblers, yet it was controversial because it threatened to undermine the economics of gambling in casinos. Nevertheless, Beat the Dealer set in motion the wave of books, websites, and seminars dedicated to blackjack and other casino-style games.

In addition to Beat the Dealer, Thorp has written several influential books on mathematics, finance, and investing, such as The Mathematics of Gambling and Fortune’s Formula. His books discuss the investment strategies of using Kelly criterion and expected utility, and their applications to gambling, investing in stocks, and hedge fund management. He has also developed a number of mathematical algorithms to help with decision-making and hedge fund management.

Throughout his career, Thorp has been a teacher and mentor to mathematicians, students, and investors alike. One of his most famous students includes Bill Gross, the founder of the PIMCO Total Return Fund. Thorp has also consulted for investors and Wall Street firms, including SAC Capital and D.E. Shaw.

Today, Thorp is retired from teaching but is still active in the world of investing and gambling. He sits on the board of directors of a number of venture capital firms and remains a popular speaker at seminars and conventions. His original book Beat the Dealer continues to be the gold standard for blackjack strategy and his body of work stands as one of the most influential in the field of mathematics and gambling.