Kelly was aware that there is one type of favorable bet available to everyone; the stock market.
William PoundstoneThe best paradoxes raise questions about what kinds of contradictions can occur-what species of impossibilities are possible.
William PoundstoneBernoulli's real contribution was to coin a word. The word has been translated into English as "utility". It describes this subjective value people place on money.
William PoundstoneThere is a deep connection between Bernoulli's dictum and John Kelly's 1956 publication. It turns out that Kelly's prescription can be restated as this simple rule: When faced with a choice of wagers or investments, choose the one with the highest geometric means of outcomes.
William Poundstone