Tuesday, June 24, 2008

Ed Thorp & Paul Newman

"In the early 1970s, Thorp got a lead that actor Paul Newman might be interested in investing [in Thorp's hedge fund]. Newman had just done The Sting. Thorp had a beer with Newman on the Twentieth Century Fox lot. Newman asked how much Thorp could make at blackjack if he did it full-time. Thorp answered $300,000 a year.

"Why aren't you out there doing it?" Newman asked.

"Would you do it?" Thorp asked.

Thorp estimated that Newman made about $6 million that year.

Thorp was making about the same."

(Source: Fortune's Formula (Hill and Wang, 2005), Author: William Poundstone)

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