Beat the Market: A Scientific Stock Market System

Summary

Edward O. Thorp and Sheen T. Kassouf set out their historical method for comparing convertible securities with the shares into which they can convert. They explain warrants, short sales and hedged positions, then examine worked trades and past records.

Later chapters cover account statements, portfolio management and failures such as short squeezes or changes in a warrant’s terms. This is the 1967 Random House work, written before modern trading infrastructure. Its reported results and claims describe the authors’ period and methods, rather than a promise about present markets.

• SourceBeat the Market — original book hosted by UC Irvine Economics · Title/copyright pages; contents pp. v–vii; Introduction pp. 3–6; ch. 9, Can Anything Go Wrong?, pp. 127–140. Exact original credits and 1967 publication; no ISBN printed on inspected original pages.Checked 2026-11-03

Why read it Our view

Study how the authors move from a model to a working process: choose candidates, size positions, check records and name failure conditions. For a business built on a quantitative method, the useful comparison is between the model’s assumptions and the controls needed to operate it.