The Motley Fool (www.fool.com) recently did a three part feature where they applied 10 tips from the Mike Caro University of poker to show how many of these concepts apply to successful investing.
To summarize some of the lessons:
MCU Tip No. 2: Money you don't lose buys just as many things as money you win.
The lesson: Save money by lowering risk and avoiding overpriced stocks.
MCU Tip No. 7: If one pro plays twice as many hands as another, both might earn the same profit.
The lesson: It's better to have a few superior stocks in your portfolio than to diversify by adding marginal companies.
MCU Tip No. 4: You don't get paid to win pots; you get paid to make the right decisions.
The lesson: Ignore short-term results, and focus on how you played the game.
MCU Tip No. 1: In the beginning, everything was even money.
The lesson: An investor's advantage comes from the ability to gauge valuation and expectations.
MCU Tip No. 11: Poker's stupidest question: "Why didn't you quit when you were $17,000 ahead?"
The lesson: Always look ahead. If the business quality and valuation favor a hold, then the correct decision is to hold on to the stock.
MCU Tip No. 14: Beating strong foes wins much respect and little money; beating weak foes wins little respect and much money.
The lesson: Investing is about what makes the money in the long run.
MCU Tip No. 3: What you already have invested in the pot doesn't matter.
The lesson: Always look ahead
MCU Tip No. 9: Never stay in a poker game hoping to get even.
The lesson: If your only consideration for holding onto a stock is to get even, then it is time to sell and move on.
MCU Tip No. 6: Don't treat your bankroll like a tournament buy-in.
The lesson: When you're down, don't play for broke. Be prepared to walk away.
MCU Tip No. 10: Don't manufacture a winning streak.
The lesson: Pick your spots and maintain discipline. Wait for that fat pitch.
In all, it's a very good series of articles and worth your time to read.
http://www.fool.com/news/commentary/2005/commentary05041903.htm
