Winning Poker Lessons From Warren Buffett

Dear Poker Player,

Warren Buffett is one smart dude. And RICH.

He’s the second richest man in the WORLD… right behind
Bill Gates. Forbes estimates that his net worth is $40
BILLION.

(How’s THAT for a bankroll?)

What’s interesting about Buffett is that he made his fortune
over a LONGGG period of time… by consistently beating the
stock market year after year after year.

He wasn’t one of those “overnight” dot-com billionaires.

He wasn’t “lucky” to be in the right place at the right
time.

He didn’t “invent” some new technology that changed the
world.

Nope… all he did was invest and “pick winners” over and
over. Since taking control of Berkshire 40 years ago,
Buffett has delivered a compound annual return of 22%.

AND JUST BY DOING THAT, he became the 2nd richest man alive.

OK– so why am I rambling on about 75-year old man who’s
good at investing?

The reason is because I’ve realized that there are DOZENS of
important parallels between the STOCK MARKET and POKER.

Here are just a few:

* The stock market is often considered “gambling”, due to
its unpredictable nature… just as POKER is often
considered gambling, even though it’s a SKILL game.

* The stock market has a heavy emphasis on odds and
mathematics… just like poker.

* The stock market is predominately a male-driven
industry… just like poker. idn poker

* The stock market has PLENTY of up’s and down’s, and
“streaks”… just like poker.

* And so on.

Of course, these are “surface” similarities.

Now think about the PSYCHOLOGY of poker and the stock
market… and how they’re often EXACTLY THE SAME:

* In the stock market, everyone dreams of buying that one
MIRACLE STOCK that will go from $2 to $200 and make them
rich…

In poker, everyone has their “pipe dream” of winning a huge
million-dollar tournament on ESPN.

* When a stock tanks, most investors FREAK OUT and
immediately make several bad investment decisions in a row.
It’s usually THESE decisions that hurt them the most.

In poker, this is known as “tilt”. Bad beats cause some
damage… but it’s usually the decisions you make AFTER the
bad beats that cause you to lose the game.