Poker and Investing

Hitchhiker's Guide to...

This seems like heaven to me. Finally found the link between my research on investor psychology and poker!

Transcript here: http://www.leggmason.com/billmiller/conference/illustrations/nelson.asp

Video here:
http://www.leggmason.com/billmiller/conference/webcast/nelson.asp

It's quite long, about 25 minutes of a video, but very good stuff.

If any of the psychological terms don't make sense, or you want any of the background readings referred to in the text just ask!

P.S. despite the financial background of this speaker, i'm sure many of the people on this board could write a better article...

Culchie

Roundtower2 wrote:

This seems like heaven to me. Finally found the link between my research on investor psychology and poker!

Transcript here: http://www.leggmason.com/billmiller/conference/illustrations/nelson.asp

Video here:
http://www.leggmason.com/billmiller/conference/webcast/nelson.asp

It's quite long, about 25 minutes of a video, but very good stuff.

If any of the psychological terms don't make sense, or you want any of the background readings referred to in the text just ask!

P.S. despite the financial background of this speaker, i'm sure many of the people on this board could write a better article...

Hey Mike, was that you on the radio yesterday evening?

ollyk1

Roundtower2 wrote:

This seems like heaven to me. Finally found the link between my research on investor psychology and poker!

Transcript here: http://www.leggmason.com/billmiller/conference/illustrations/nelson.asp

Video here:
http://www.leggmason.com/billmiller/conference/webcast/nelson.asp

It's quite long, about 25 minutes of a video, but very good stuff.

If any of the psychological terms don't make sense, or you want any of the background readings referred to in the text just ask!

P.S. despite the financial background of this speaker, i'm sure many of the people on this board could write a better article...

Interesting read Mick, I've been telling them in work for ages that all those late nights should be billable as research!!

Hitchhiker's Guide to...

Culchie wrote:

Hey Mike, was that you on the radio yesterday evening?

No! Which is a bit worrying. Was someone talking about investor psychology? I hope not, i've made quite a bit of effort to be seen as 'the man' in this area!

If it wasn't a practitioner, then it was probably either Brian Lucey in TCD or Shane Whelan in UCD.

Hitchhiker's Guide to...

ollyk1 wrote:

Interesting read Mick, I've been telling them in work for ages that all those late nights should be billable as research!!

hopefully academia will be more accomodating!

have always thought it would be a good education for finance students to spend a class playing poker - so much implicit investor psychology and game theory...

Hitchhiker's Guide to...

oops ... double-post

ollyk1

Roundtower2 wrote:

hopefully academia will be more accomodating!

have always thought it would be a good education for finance students to spend a class playing poker - so much implicit investor psychology and game theory...

Well I've known of more then one job interview which included playing poker and discussing pot odds etc. for a siginificant portion of the interview with fellow workers.

To be honest I think the pschology of loss and chasing losses and limiting profits and walking away from a good poker table (investment opportunity) a modest winner and trying to win back losses at a poor poker table is the most important lesson anyone could learn from poker in respect of investing. However that important lesson isn't learnt by studying pot odds or discussing starting hands etc. and couldn't be trult "taught" in an hour. It is only truly learnt the hard way (imho) but it could be the most valauble lesson any investor ever learns.

Funnily enough I had some clients asking me should they move their investments into "safer" assets over the last few days and I almost had to slap them. Why weren't you ringing me to protect your assets when you were up 30% in 15 months two weeks ago? Now you are only up 24% you want to sell??:eek: