David Einhorn & Jim Chanos on Similarities Between Poker & Investing

http://www.marketfolly.com/2013/08/david-einhorn-jim-chanos-on.html Bloomberg recently highlighted a poker tournament featuring hedge fund managers David Einhorn and Jim Chanos.  In it, they asked the hedgies to compare poker to investing. 

Einhorn said that, “Over time, as you invest in lots and lots of stocks over a long period of time, skill I think dominates.  And the same is true in poker.  If you play lots and lots of hands and lots and lots of tournaments, eventually the better players are going to come out on top.” 

Chanos added that, “Like in investing, poker you deal with incomplete information.”

This comparison is by no means new.  A few years ago, we highlighted the link between hedge fund managers and poker as many hedgies have played the game and commented on the similarities.

Embedded below is the Bloomberg video:

H/T Santangel’s Review

via market folly http://www.marketfolly.com/