Posts Tagged ‘David Einhorn’

Vanessa Selbst discusses Link between Poker Players and Investors

Monday, October 28th, 2013

Thanks to the fact that she’s the women’s all-time leader in poker tournament winnings with $8 million and has a Yale Law School degree, Vanessa Selbst gets a lot of mainstream attention. So it was little surprise when Bloomberg TV interviewed her in a segment dedicated to the link between poker players and investors.

The reason for the sudden interest in poker on Bloomberg’s part is due to their new show, Poker Night on Wall Street. Rather than having pros compete against each other, this TV show pits successful hedge fund managers like Bill Perkins and David Einhorn against each other.

When asked why she thought these Wall Street guys could be good at poker, Selbst said, “Absolutely, there’s so many similarities, cross-overs between the two industries. You’re taking calculated risks, processing a world of information that’s at your disposal.”

Selbst also discussed how the math aspect of poker favors investors. “It’s a game of numbers, it’s a game of pushing small edges,” she said. “Another skill that is important is to take the downswings, and not go on tilt as we say, and really be OK with losing for a long time in a row. You know, just like investments that were maybe a good idea at the time, and they just went the wrong way.”

Moving away from the investors, the two-time WSOP poker champ also had some advice on what the average player does wrong. “I would say that they don’t play their hands aggressively enough. They kind of get scared that they don’t have the best hand, so they don’t capitalize – they don’t maximize their gains when they have the best hand.” She added that players really need to go after it when they think that they’ve got the top hand.

Vanessa Selbst has certainly never been afraid to go after a pot when she thinks that she’s in the lead. And the $8 million-plus that she’s earned certainly indicates this fact. Seeing as how Selbst has collected over $2.4 million in tournaments this year, you can count on seeing her in the winner’s circle plenty more in the future.

David Einhorn discusses Psyche of a Billionaire Poker Player

Saturday, July 7th, 2012

Following his recent third place finish in the Big One for One Drop, David Einhorn has become one of the hottest stories in the poker world. The Greenlight Capitol hedge fund manager earned $4,352,000 for taking third place, and he donated the entire amount to the One Drop foundation.

Seeing as how Einhorn is an investor, you might think that he’s just some random billionaire who luckboxed his way into a good finish. However, the truth is that the New Yorker has become very good at relating poker to his investing business. Einhorn explained this by saying the following:

There’s some information you know, there’s some information you surmise, and then there’s the future which is the unknown information and you have a range of possible outcomes.

If you think about a poker hand that way, you have your cards, you have what you can surmise about whatever your opponents might have and then you have whatever cards might come on the board that are uncertain. So there’s a range, and you’re calculating through those three pieces of information.

And when you invest, it’s really the same. There are the things you know about a company or the world or whatnot, and there are things that you surmise — you don’t know, but you kind of assume –and then there’s the future, which is the range of possible events in the future. And then you think about how do those three things put together affect an investment, which isn’t all that different from how something might affect a poker hand.

As you can see, David Einhorn definitely seems to know more about poker than one would think. He uses his knowledge of investing to profile players and consider their range of hands.

Now one thing that many people may not realize is that this isn’t Einhorn’s first time around the block on the poker tables. He’s cashed in three other live poker tournaments – including an 18th place finish in the 2006 WSOP Main Event ($699,730).

In all, Einhorn has collected $5,107,352 in live tournament winnings, which ranks him 73rd on the all-time money list. And this isn’t bad at all for a guy who spends most of his life trading stocks!