Poker is a zero-sum game, yet David Einhorn finds a way to win in poker. He finished 18th among 8773 players in 2006, winning more than $650 K in the biggest poker event ever. In this year’s event Einhorn already showed that he is better than most players. Einhorn more than tripled his chip count in day 1 and is among the remaining 3481 players left in the competition. Here is how David Einhorn wins in poker:
“Both poker and investing are games of incomplete information. You have a certain set of facts and you are looking for situations where you have an edge, whether the edge is psychological or statistical.” Einhorn told NYT in 2006.
Most investors and poker players don’t have the discipline to be successful. David Einhorn is patient enough to wait for the opportunities where the odds are stacked in favor of him. As simple as that. Warren Buffett has a similar strategy too.
Btw, if you wonder how David Einhorn wins in investing, read our interview with him. “We try to find things that are misunderstood. And then if we think something is misunderstood then we figure out if it’s misvalued. And if we figure out that it’s misunderstood and misvalued, then we tend to invest. ” Einhorn told us.