Edward Thorp Net Worth (Updated 2025).

Edward Thorp, a name synonymous with the intersection of mathematics and gambling, began his career in an unconventional manner. Born in 1932, Thorp graduated from UCLA with a degree in physics, but it was his fascination with probability and statistics that would ultimately shape his destiny. He initially worked as a physicist for the U.S. government, but his curiosity led him to explore the mathematical principles behind games of chance.

While working on his Ph.D. in mathematics at UCLA, Thorp became intrigued by the concept of beating the casino at blackjack. He spent countless hours analyzing the game’s mathematical probabilities, leading to the development of his famous “ten-count” system. This system, outlined in his 1962 book “Beat the Dealer,” revolutionized the way blackjack was played and brought Thorp fame. His methodical approach to gambling, backed by solid mathematics, challenged the conventional wisdom that casinos always held the advantage.

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Edward Thorp’s Current Net Worth (2025)

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As of 2025, Edward Thorp’s estimated net worth is around $800 million. This notable figure reflects his successful career as a mathematician, hedge fund manager, and author.

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Career

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Edward Thorp is renowned for his pioneering work in quantitative finance and investing. He began his career as a mathematics professor, later co-founding the Princeton-Newport Partners hedge fund in 1969. Thorp’s innovative strategies, including his blackjack card-counting system and the development of the first wearable computer, have significantly impacted the world of investing and gambling.

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Other Ventures

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Thorp has authored several books, including the influential “Beat the Market” and “Beat the Dealer,” which introduced his card-counting system. He also co-founded the hedge fund Rational Investment Management and served as its chairman until 2007. Additionally, Thorp has made significant philanthropic contributions, donating to various educational and medical institutions.

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Assets

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Thorp’s assets primarily consist of his stakes in various hedge funds and investment partnerships. He also owns properties in California and other states, as well as a collection of valuable art and rare books. Thorp’s intellectual property, including his patents and copyrights, also contributes significantly to his net worth.

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Annual Income

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Edward Thorp’s annual income is not publicly disclosed. However, as a successful hedge fund manager and author, his income likely consists of earnings from his investment management fees, book royalties, and any other ventures. Given his net worth, his annual income is likely substantial, though the exact figure remains unknown.

Frequently Asked Questions about  Edward Thorp

Frequently Asked Questions about Edward Thorp’s Net Worth

1. What is Edward Thorp’s net worth?

Edward Thorp’s net worth is estimated to be around $800 million.

2. How did Edward Thorp make his fortune?

Edward Thorp made his fortune through his successful career as a mathematician, hedge fund manager, and author. He is best known for his work in developing the first wearable computer for sports betting and for his innovative investment strategies.

3. What is Edward Thorp’s background?

Edward Thorp was born in Chicago, Illinois, and received his Ph.D. in mathematics from the University of California, Los Angeles. He is a former professor of mathematics and a renowned blackjack player.

4. What are some of Edward Thorp’s books?

Some of Edward Thorp’s books include “Beat the Dealer,” “Beat the Market,” “The Money Machine,” and “A Man for All Markets: Further Adventures of a Lifelong gambler.”

5. What is the “Kelly Criterion”?

The “Kelly Criterion” is a formula developed by John L. Kelly Jr. for optimal allocation of capital to maximize growth rate. Edward Thorp popularized this concept in his book “Beat the Market.”

6. How old is Edward Thorp?

Edward Thorp was born on August 14, 1932, making him 90 years old as of 2022.

7. What is Edward Thorp’s investment strategy?

Edward Thorp’s investment strategy is based on quantitative analysis and value investing. He is known for his use of the Kelly Criterion and other mathematical models to make investment decisions.

8. What is Edward Thorp’s relationship with Warren Buffett?

Edward Thorp and Warren Buffett have a long-standing friendship and mutual respect. Thorp has influenced Buffett’s investment strategies, and Buffett has praised Thorp’s work.

9. What is Edward Thorp’s involvement in sports betting?

Edward Thorp is known for his work in developing the first wearable computer for sports betting, which he used to predict basketball games. He also wrote a book called “The Sports Book: Life Lessons and the Pursuit of Wealth and Happiness.”

10. What is Edward Thorp’s philanthropic work?

Edward Thorp has been involved in various philanthropic activities, including donating to educational institutions and supporting scientific research. He has also been a vocal advocate for the responsible use of mathematics and statistics in decision-making.