Ed Thorp on How to Think for Yourself, How to Be Inner-Directed, and The Dangers of Investing Fads

[@timferriss]

This episode is brought to you by Wealthfront automated investing wealthfront.com/tim, Vuori comfortable and durable performance apparel vuoriclothing.com/tim, and Eight Sleep’s Pod Pro Cover sleeping solution for dynamic cooling and heating eightsleep.com/Tim.

[@chtomlin]

Most can't really think for themselves on an appreciable level (just a sad fact of the bell curve of intelligence), so it would be better to teach them how to select role models to follow. Effort and Attitude can then be the best guide of your success.

[@zengineer1010]

The card counting trick by Ed Thorp : kzbin.infoLZUQvYK1TpA?feature=share

[@whateverwhy]

You have interviewed a lot of people over the last number of years but I have enjoyed your conversations with Edward Thorp more than anyone else. I remember reading his blackjack book back in the 80s and even put the information to good use. Honestly, I didn't realize he was still living and, of course, am very glad he is. I hope you have him back many more times.... he has much to offer us.

[@pauldacus4590]

Holy Crap! This guy looks incredible for how old he actually is! And Thorp looks pretty good too 😁

[@pab77777]

Mr. Throp, I remember in the eighties I learned to count cards with your book. My proudest moment in college was when I sent in a few lines of basic computer language code to a computer magazine that was published. The code allowed a blackjack program they printed to count cards. I remember I gave you credit in the submission for the technique I learned from you. Great podcast. Live long and prosper.🙂

[@tradingpoker1324]

Great podcast. As an interviewer, you're a true professional and expert. You don't interrupt, you let them speak, and you ask the follow up questions to guests that we are thinking. So many interviewers usually self-centeredly dominate the conversation themselves and speak way too much.

[@JohnHobitakis]

Part 2 with Ed Thorp - wow what a treat!!

[@mistersir]

Unbelievable!!! I got a notification about a podcast with Ed, but thought it was the first one.. I just right now realized it's the sequel! I'm so happy, thank you both, Tim and Ed for sharing your time and knowledge with us.

[@kay030303]

Thank you for posting this great interview! Ed Thorp is an amazing man and I learned so much. Love his smile

[@timandersen8030]

Always a pleasure to listen to Ed Thorp. He's brilliant. Thanks for another interview!

[@chtomlin]

not so brilliant... bought into climate hoax and also the DNC BS about Democracy being under attack because we dared to question a shady election with loads of sketchy mail-in ballots. Seems more like the typical Democrat who wants to edit history to make themselves look good.

[@chtomlin]

Please someone explain why this guy is supposed to be so brilliant

[@DavidMM255]

This two videos with Ed O Thorpe have been really fantastic. Could you please get some more interviews with people alike? Old, wise, keen to learn individuals that have mastered the art of living? That would be much appreciated.

[@friarnewborg9213]

GREAT to see the legend, Ed Thorpe BACK!

[@LeandroDaRosaMarques]

Edward, you are an inspiration. I was really impressed when you both talked recently and looking forward to listen to this one. Tim: he is the real Superman isn't he?

[@youcanknowanything8489]

Sucha delight to hear this gentle brilliant man. If any of u who like investing have not read his book...nows the time to find it " Man for All Market'. It is full of his personality and inventiveness and common sensical genius. Thankyou Tim for putting Mr. Thorpe on your podcast 👍

[@joepaquet4332]

I wish there was a list of all the books referenced in the info page. Brilliant podcaster interviewing a brilliant man.

[@bruceh8005]

Thanks - Ed has a lot of real wisdom that can help the average person in their daily life, and he doesn't have anything to gain from offering it

[@SpecialKatz]

Thank you, Tim. That was fantastic (which is obviously an understatement).

[@barissious]

Hope is not strategy - love it!

[@birgirkarl]

I'd like a weekly session with that man! Love his thinking... maybe because of me being an INTP in everlasting search for systems & rational thinking.

[@grizzlydynamics]

40:44 I was listening casually until that moment. That blew my mind. He literally looks 25 years younger at least. Wow!

[@claudiutopoliceanu12]

Wisdom, balance, life experience. All- in Ed Thorpe

[@samfortune589]

This man is completely captivating, what a mind.

[@tung1095]

This is the first video I watch from this channel. Thanks, Tim. You asked a lot of great questions. Learn a ton

[@ashleylemmer8016]

I know of Ed through my years of looking at the markets and Tim from your books the 4-hour Work Week and the 4-hour Body. Thank you to both of you for the interview, thoroughly enjoyed it and learnt a few things.

[@timourkh]

Brilliant. You need to have him on a few more times

[@collingafar1638]

Great listening skills and patience by Tim Ferriss!

[@AuditorInvestor]

Wow I can't believe he is 89. What a varied intellectual life. Thanks.

[@WhiteNorthStar1]

wow... insights from a smart, ethical man with a lot of experience.

[@chrisdillon2641]

This is definitely a conversation full of gold nuggets. I found myself smiling often and contemplated the laughing Buddha's story (in this case, contagious joy). I'll definitely listen to this again but next time with pen and paper. Also, I appreciate the questions you ask. It was slightly creepy because as a question arose in my mind, you asked it. For a second I thought - dang, surely we haven't advanced to this point already! :) Namaste'

[@tradingpoker1324]

Question, there's also a book called "the wisdom of crowds" which my finance class covered in college. The premise is opposite that of "the Madness of crowds". Any thought on why contrary conclusions?

[@k.stat.9414]

How to spell the Hair Growth drug name mentioned in 1:11:15?

[@youcanknowanything8489]

Mr Thorpe is a great teacher.

[@marcopolotoledo4574]

Fabulous interview!

[@Mmmolina101]

First! Huge fan of your show, Tim. Eager to listen to Mr. Thorp's insights

[@dcamnc1]

My fav of your interviews.

[@iwannatake6270]

Thanks Tim!

[@interstik]

Been waiting for this one. Another great interview

[@David-jb5dv]

Thanks for once again enriching me Tim.

[@coultercapitalmanagement]

Absolute Legend ... (Jim Simmons & Thorp are 1 & 2)

[@kptrzk9398]

Thorp on top!

[@moh6410]

Edward Oakley Thorp (born August 14, 1932) is an American mathematics professor, author, hedge fund manager, and blackjack researcher. He pioneered the modern applications of probability theory, including the harnessing of very small correlations for reliable financial gain. Thorp is the author of Beat the Dealer, which mathematically proved that the house advantage in blackjack could be overcome by card counting. He also developed and applied effective hedge fund techniques in the financial markets, and collaborated with Claude Shannon in creating the first wearable computer. Thorp received his Ph.D. in mathematics from the University of California, Los Angeles in 1958, and worked at the Massachusetts Institute of Technology (MIT) from 1959 to 1961. He was a professor of mathematics from 1961 to 1965 at New Mexico State University, and then joined the University of California, Irvine where he was a professor of mathematics from 1965 to 1977 and a professor of mathematics and finance from 1977 to 1982. [wikipedia]

[@10KRotator]

this is effin brilliant!

[@cala9765]

I’m an INTJ as well 🙂

[@wtpwtp]

What specific index fund(s) does Thorp recommend being in?

[@terrycaroll2110]

Tim next time when you talk to him could you please ask him to put more emphasis on his "Rainman" story. That is a very powerful metaphoric story which can be generalized as this: Using a methodology can mimic the success of the genius. That way despite not being a genius - your performance can match the performance of a genius. Rainman does not use the technique you use to determine the dates- it pops and flashes into his mind due to the unique calculations possible in his mind. We can not mimic that. But we can mimic his sucess using some methodology (thinking tool). I feel like - in the coming up age- being a genious will not be as important anymore- because algorithms will enable us to deliver the same success. There is a very popular seamstress in my home country- he takes pride in being able to sew clothes just to the right size by just looking at his customer- that is his unique capability and it is not easily replicated- but measuring tools enabled us to replicate his accuracy. So a seamstress without his accuracy can still sew the perfect fitting clothes using the measuring tape.

[@Gary_Reid_Backing_Tracks]

1:01:54 : How to think for yourself...

[@chill6594]

Great content. Just a thought, Long term investing goes hand in hand with living below your means. This allows you to weather the long downturns. One without the other likely will not work.

[@wtpwtp]

Wish you asked what specific bone supplement Thorp takes.

[@FinancialFreedomMadeSimple]

Glad I subbed to your channel, so many take away from your vids.

[@method341]

In the next video can you ask him about the book Fortune's Formula and Claude Shannon, one of the greatest minds of the 20th century?

[@benjaminandersson2572]

57:55 That´s a lot if you don´t have much money

[@Alan-jp6pv]

I would love to know what Ed and Tim think about the inability or next-to-impossibility of US citizens to trade volatile crypto positions with leverage, margin or options. I'm not an experienced trader, but the lack of regulatory permissions is astonishing for someone who even dreams of creating their own positions on an asset.

[@BedrockLeadership]

Just as I started feeling as if I were listening to Rain Man, the guest brought up Rain Man.

[@DJGelbart]

Somthing clicked for me when they both proffesed to being INTJ. I am as well. I have long suspected that Warren Buffett is as well. Anyways, I have always wondered if my admeration of people is because they show a simillarity to me, but in a better verssion... Lots of other great stuff here. Thank you!

[@MrZola1234]

Hedge fund managers since 2010 do not have the issue Thorpe explains at the 34:00 point in the video. Hedge fund managers are taxed at 20% capital gains rather than normal income tax rates for their personal income.

[@method341]

he's talking about the investors, not the managers right?

[@MrZola1234]

​@method341 i relistened, and it is hard to follow. He is talking about himself in his fund, which he is the manager.... So, the special hedge fund manager tax rates should apply. Also, it is odd when he speaks of tax rates of 50%. Long term capital gains as an investor is taxed at 0-20%. Short term caps out at 37%... but it almost unthinkable he was being taxed that high. He would have tax professionals helping him fet long term capital gains at worst. I would say as the fund manager he gets 15 - 20% tax rate on his money in the fund... but even if not. . It would be 20% tops... TODAY.

[@method341]

@@MrZola1234 at the end of the day though, isn't it telling that one of the smartest and richest people in the world today has basically all of his money in index funds. He could be invested in basically any hedge fund but he decided to go with something that is available to anyone who has a brokerage account.

[@dudea3378]

​@@MrZola1234 California, man. Those cali taxes 😢

[@MrZola1234]

@ the rich folks don’t pay a big % in taxes in California, just W2 employees

[@dogcard664]

I wished you would've talk to thorp about the book he coauthor about position sizing in investing called The Kelly Criterion

[@huangjiang64]

That's a pro book for pro, I'm learning it too

[@veritasimmigration]

AWESOME

[@sandywitch]

Thinking for ourselves is hard when we are being conditioned constantly through social media and the news to think a specific way.

[@drmedwuast]

turn off the news, get off social media. solved.

[@bmejia220]

Don’t make excuses ;)

[@michaelwangCH]

If the distribution is symmetric, e.g gaussian, the measurement of average is meaningful.

[@zengineer1010]

The card counting trick by Ed Thorp : kzbin.infoLZUQvYK1TpA?feature=share

[@azis-dr3ij8ci6u]

Penjelasannya sangat detail👍🤝

[@davenchop]

thats what she said

[@newtalking3]

Vaccine efficacy was given as relative so if you have 100 people in a room and one wore a yellow hat Thats one out of 100 If an additional person wore a yellow hat you can say using relative that the efficacy of people wearing yellow hats increased by 90% when in absolute is was 1%

[@sebfox2194]

No, you can't. Your numbers just don't make sense. If the number of people wearing yellow hats increases from 1 to 2, then the relative increase in yellow hats in percentage terms is a 100% increase. If one person is wearing a yellow hat, then the only was to get a 90% relative increase in the people wearing yellow hats is to have 90% of a person wearing a yellow hat.

[@periklisspanos7185]

Listening to this I feel rich, the problem is I am still poor

[@L1amTill]

I think there was a missed opportunity to discuss how the poor and people living paycheck to paycheck might be able to do some things to help get out of that cycle. In my view it's pointless discussing how the people on the board or the 45yo with income already. Y'all ready wealthy. How does the average person start building

[@ui4391]

Make more money?

[@MajorasMaskMailman]

24:43

[@MeBee-fl2ow]

I dont get the introduction. That means he should have sold, shouldnt have been that greedy and reinvest it in the stock market in order to get a great return. but it says "a great example of how short-term thinking can cost investors millions."... so what do I miss here?

[@10wn1]

He does look good for his age. All the healthy foods he can afford ;)

[@DontNeedToKnow84]

1:11:06 “stumbled” into it? Lmfao. Ok.

[@marksoberay2318]

Let me summarize...live poor die rich!

[@lamprost]

That guy is 90 years old!

[@drewa1999]

Impressive, yet a bit surprised this wizard couldn't swiftly compute 2022-1974 but.......

[@ryanbaileyboxing]

👏🏾👏🏾👏🏾👏🏾

[@benjaminandersson2572]

13:37 Doomsday rule

[@nahmevibestudio]

He is 89?

[@apoorvsingh_ASR]

Here is the video for day of any date --> kzbin.info/www/bejne/gZiymZadbpd5msU

[@mrbartuss1]

15:30

[@tonebalone9203]

In other words, why people r the the way they r, high school: no intro to finance, human modern psyche is immediate gratification

[@mchangun]

Did he just say he wished there was a vaccine for COVID?

[@1232bluejays]

Should have asked him what he eats

[@chtomlin]

You guys realize that male pattern baldness is passed thru the mom by her father, right?

[@davenchop]

wrong

[@chtomlin]

This is more like advice from the common sense Almanac instead of "how to think".

[@josepereira2759]

Impossible this guy is 89!!!!??? Wtf

[@mulatto2776]

Ironically this video is titled How do you think for yourself. It should be titled, How to let propagandists do your thinking for you.

[@silverjedi3529]

He hasn't thought about What if his risk analysis is based on incorrect information ? He's guaranteed to take the incorrect action. Assuming information you receive is correct is a HUGE mistake. People have hidden agendas. WAKE UP ❗ 51 minutes clueless

[@mulatto2776]

This guy may have done some good stuff with math and blackjack, but now he's just a massive consumer and regurgitator of government manufactured fear statistics and propaganda. It's hard to believe someone who used to be so intuitive has resorted to such obviously manipulated data. I guess the older and richer you get, the easier you are to scare.

[@harrisburghawk315]

Lost me at climate change

[@Jaysonbc1234]

Oh... you're Scared of oxygen. I guess I'm the wealthiest by not being scared of something that has a 99.9% survival rate.

[@Murphator]

yuuup

[@stratovation1474]

That's not what he said. He plays the odds. The best poker players are just 5% better than the next level down. Over time that 5% is big. He's a math guy. Not many people are. Awareness analysis action.

[@christinamariehicks1078]

wouldnt waste my breath helping none of u..

[@panashejmombeshora4021]

No this is impossible. How can this guy be 90 years old? He forged is Birth Certificate 🤣🤣🤣 I've got notes to take from this guy to make it to the next century ...

[@ElementaryWatson-123]

You mean like Obama? He doesn't need to.

[@panashejmombeshora4021]

@ElementaryWatson-123 Yikes 🤣

[@variancejunky]

Being intelligent means thinking and being yourself so you can bear the consequences of your actions. Not doing what other people do will save your ass!

[@1Bridem]

Everyone like finasteride?? We all know about that!!