As you know, David Einhorn is a sick poker player — so we picked up a few tips on the game from him after watching him play last week on Bloomberg TV’s ‘Poker Night On Wall Street special.
David Einhorn (Greenlight Capital), Steve Kuhn (Pine River Investments), John Rogers (Ariel Investments), Jim Chanos (Kynikos Associates), Mario Gabelli (Gabelli Asset Management), and Bill Perkins (Skylar Capital) participated in ‘Poker Night On Wall Street‘, which had a minimum buy-in of $US50,000.
Greenlight Capital’s David Einhorn, who finished in third place in the World Series of Poker in 2012, shares his tips on how to become a better poker player (you can watch the video here).
Tip #1: Practice Makes Perfect.
Einhorn began playing poker in 2004, had a great time, practiced with a friend for a year and then went on to the world series in 2006, which was his first big tournament. Six years later, he was a world series winner.
Tip 2: Think On Your Feet
Some poker situations are just simple maths problems. Think of the payout in terms of the amount of money you have, the cards you have and the probability of getting the cards you need.
Tip #3: Play The Long Game
Anything can happen in one tournament, it’s like what could happen to one stock over quarter. But over time, the better stocks prevail. Similarly, in poker, over time, skill is more important than luck.
Tip #4: Don’t Take Poker Too Seriously
At the end of the day, relax and treat poker like any other game, a way to decompress from the stress of day-to-day life on Wall Street. “Frankly, I’m feeling a lot more pressure over some coming earnings releases over the next few days,” Einhorn says.