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Born in 1932, Thorp's genius manifested early, but it was his doctoral work in mathematics at the University of California, Los Angeles, that set the stage for his legendary career. His doctoral dissertation, "Fortune's Formula," was not just an academic exercise; it was the blueprint for what would become known as the Kelly Criterion, a mathematical formula for determining the optimal size of a series of bets to maximize the logarithm of wealth. This principle, developed in the late 1950s, became the cornerstone of his investment philosophy. Thorp understood that in games of uncertainty, the goal was not simply to win, but to win efficiently, balancing potential gains against the ever-present risk of ruin. This intellectual framework, born from the pages of his dissertation, provided the theoretical underpinning for his future exploits, whether at the blackjack tables of Las Vegas or the trading floors of New York.
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