The Big Billionaire Gamblers (may be controversial)
 

There's a very interesting book called "How to be a billionaire." It analyzes the habits of several of America's billionaires.

One of the interesting observations of that book is that a lot of billionaires seem to enjoy gambling-style card games. Here's a snippet from the book.... Let me know what you think....

On the specific issue of risk, the billionaires' interest in card games, particularly poker, is striking. During the cotton-planting days, before entering the oil business, H. L. Hunt was compelled to support his family with his poker winnings after losing two consecutive crops to floods. As an undergraduate at Columbia University, John Kluge's obsession with the game attracted unwelcome attention from the administration. By graduation in 1937, Kluge had accumulated $7,000 in winnings, equivalent to $80,000 in 1999 purchasing power.

Bill Gates, too, devoted a great deal of his time at college to playing poker before dropping out of Harvard. Carl Icahn raised his first investment stake by clearing $4,000 playing poker during six months of active duty in the United States Army, a stint that followed his graduation from Princeton. Similarly, poker winnings helped to bankroll Kirk Kerkorian's launch of a charter airline that he ultimately parlayed into a billion-dollar fortune. Warren Buffett's fraternity brothers at the Wharton School of the University of Pennsylvania remember him chiefly for playing bridge. He became proficient enough to play on the Corporate America team, a group of chief executive officers that took on such opponents as a team composed of members of the British Parliament.

(From How To Be A Billionaire by Martin S. Fridson, p. 21, published by John Wiley and Sons, 2000.)

I'm not saying that everyone should start throwing their money at the poker tables. But I found this observation quite interesting.

Calculating the odds of "winning" from a business deal may have some of the similar skills as calculating the odds of getting a winning hand. But it goes beyond that....

It's also not JUST a game of odds, but also of psychology. The world's best poker players are also masters at observing the mannerisms of their opponents, and interpreting that as to whether they have a good hand, or if they're bluffing.

I don't know too much about bridge, but I assume the same observations apply as for poker.

Any thoughts regarding this? Anyone for a game of bridge? :)

Cheers,

Dien

Lay your cards on the table and prepare to loose
 

Interesting observation Dien.

Recently one of Australia's richest men, Kerry Packer was reported to have lost nearly 70 million in a Las Vegas Casino. He is also a Billionaire.

In my research into highly successful people I have always found they have an ability to "read the pack", forecast trends, and know their competitors next move before they make it. I don't think that it can be attributed to instinct, rather knowledge. A careful study of markets, watching patterns and forecasting.

All these things do have some value in gambling, and this could make the chase a bit more fun for people who can read others well - then again, it could just be that they are filthy rich and don't mind blowing a few million here and there - let's face it, if youve got the money, and can afford to loose it, gambling is a lot more exciting that monopoly!

But as for those billionaires that were gambling long before they made their money, it could just be that killer instinct that tells them they have to play to win.

Interesting subject though. As I was recently in Vegas, I was knocked over by the amount of people addicted to playing those one armed bandits - they all had a need to "play to win", but something tells me most were not winning

I'd love to hear some others thoughts on this.

Have a great day...
Jason van Hooft


Don't click here because it's a very boring website.

Snake Eyes
 

Every now and then I'll travel interstate for a get-together with old friends. During the trip a poker game is ALWAYS organised.

To really get into the spirit of the thing we all - 8 to 10 of us - bring cigars. And a special cap is brought along for the dealer to wear.

We all agree on winning hands and write this down - saves disagreement later.

Then play begins.

From the many games we've played over the years - starting at around 7 in the evening and going through to 4 in the morning - two hands stand out in my mind.

The first, when a good budy of mine and I bluffed everyone else out of the hand. I ended up winning the pot with a pair of twos. He had nothing.

It was so funny. People had folded with MUCH better hands. And they really let their feelings be known when they saw my pair of twos. HA!

The other memorably event was...

It was very late (or early, depending on your point of view). Most people had gone home and there were just three of us left. I'd had enough and the last hand of the night was being played.

To make it super fair I was the dealer even though I wasn't playing.

Some time during the night two jokers had been added to the pack as wild cards.

I delt both hands and both players drew new cards. I got to see both of their hands.

They placed their bets, upped each other until finally they both said "Stuff it" and put all the money they had on the table into the pot.

Both players thought they had a winning hand. And if I'd been in their shoes I would have too.

One player had four Jacks, and the wild card. The other, four Queens, and the wild card! Incredible.

Certainly with any card game there's an element of chance. BUT, with some games, such as poker, there's also an element of skill.

I believe it's this skill factor which makes it attractive.

Not just skill with the cards though. Skill in things that aren't related to the cards, as shown by the bluffing element.

To out-smart the other player under totally equal conditions. And doing so under "game" conditions. Game conditions which reflect life in the business world to a degree - nerves of steel, bluffing, out-smarting competition, etc.

Of course, poker isn't the only other game that reflects (simulates) business.

The most well known one that springs to mind is Monopoly - the real estate trading game.

The basics of Monopoly are simple - buy land, build a house on it, upgrade to hotels, and charge people rent.

Sure there's some luck in Monopoly - the luck of the dice and the cards you draw. But there's also skill.

And I think by playing "simulation games" you learn by a kind of osmosis. You have fun while learning something useful.

More than that though, you do the learning without real financial risk.

AND, you can keep your skills in sharp form.

I mean, lets face it, Tiger Woods didn't get to where he is today because he didn't practice until he got good, and practice to stay good. He got to where he is today precisely because he practices.

I'm not telling you anything you don't know already.

But what gets me is, every day, all over the planet, people go into business WITHOUT practicing.

This is akin to a non-golfer going to Walmart, buying a set of clubs, joining the Pro tour and expecting to make a living.

Is it any wonder so many businesses flop?

But once they're in business, they stop doing what's necessary to keep sharp.

If Tiger stopped practicing his game would go off, he wouldn't win as much, if at all, and his earnings would reflect it.

So to stay at the top making a living he practices.

Business owners don't do this on the most part. They hang their sign and try to learn as they go. A very costly way to do it.

Some try to do the smart thing and seek outside assistance - books, videos, business coaches, etc. But still it COSTS them thousands to get the hands on learning.

I can pick up a golf book and read about how to improve my game. But nothing will happen until I get on the course and give it a go. And when I do, I find it doesn't cost me an arm or a leg, and certainly won't ever come close to costing me my house. I am able to "practice" with very little cost and no great risk.

Business isn't like that though. A book may be cheap, but to practice what the book says isn't cheap.

There should be games we can play that help us learn the business skills we need. And to help us keep sharp.

Then business owners wouldn't have to put their house on the line to acquire skills. They could just learn them by osmosis from a game. And they could easily and cheaply keep their new found skills up to scratch by repeatedly playing the game.

They could get their kids involved and their kids could learn the skills at an early age.

Want to learn the stock market? Buy a stock market simulation game (if there is one). Want to learn real estate trading? Try Monopoly for starters. Want to learn (insert what you want to learn)? Buy the simulation game. It's far cheaper than learning the basics in the real world.

Of course, the problem is, these real life simulation games are not too common. Oh sure there are simulation games, but so much about them is removed from reality their use as a learning tool is minimal, if it exists at all.

Games are a fun way to learn. It's how we did it as children and we learnt very fast.

Michael Ross.

Re: Snake Eyes
 

Excellent points, Michael.

Prior to visiting Las Vegas for a weeklong conference a couple years ago, I bought a Casino CD that simulated the major games played - craps, roulette, blackjack, etc. I learned the rules and odds against me through some fun practice, even testing a "surething" craps system - didn't try it for real as the simulation had me $5000 down before finally winning it back plus $20!!

Re investing games, Robert Kiyosaki (of Rich Dad/Poor Dad fame) has a couple of board games out called Cashflow I & II that teach basic and advanced investing, money management, options, etc. The commodity trader's coach Van Tharp uses them in his trader training programs.

Simulations are a great way to at least learn the framework of a situation so when the realworld unexpected situations hit, you can cover the basics without thinking and innovate from there to handle the unexpected.
Regards,
Bob

Re: Lay your cards on the table and prepare to loose
 

Hi Jason,

> Recently one of Australia's richest men,
> Kerry Packer was reported to have lost
> nearly 70 million in a Las Vegas Casino. He
> is also a Billionaire.

Yes, he's another example of a "big gambler" among the billionaires....

> In my research into highly successful people
> I have always found they have an ability to
> "read the pack", forecast trends,
> and know their competitors next move before
> they make it. I don't think that it can be
> attributed to instinct, rather knowledge. A
> careful study of markets, watching patterns
> and forecasting.

Jason, that sounds incredibly interesting! Could you tell me more? :)

Or if there's a section on your web site -- or some ebook or book or something you've written -- I'd be interested to look into it.... :)

[...]

> But as for those billionaires that were
> gambling long before they made their money,
> it could just be that killer instinct that
> tells them they have to play to win.

I agree, the "killer instinct" I'm sure is quite important for the "high stakes" in most endeavours....

> Interesting subject though. As I was
> recently in Vegas, I was knocked over by the
> amount of people addicted to playing those
> one armed bandits - they all had a need to
> "play to win", but something tells
> me most were not winning

Yes, the problem with the "one-armed bandits" is that there's absolutely no skill whatsoever. I think that's where poker -- and bridge (though do people gamble in bridge? I'm not sure) -- are quite different.

> I'd love to hear some others thoughts on
> this.

Me too.... I hope more people respond.... :)

Cheers,

Dien

My brief blackjack career.... and business simulation games....
 

Hi Bob,

Thanks Bob, Michael, and Jason -- all very interesting stuff! :)

Several years ago, I was getting low on money.... so I figured I knew how to make money. I'd make it at the casino.

I consulted with a friend of mine who has a lot of experience gambling, and he loaned me a book about blackjack.

The book was full of tables which told you pretty much what action you should take (hit, pass, split, etc.) depending on the cards you had, and the dealer's card that was showing, to give you the best possible chance of winning.

However, even using this method, about the best odds you had was something like 49.5 % chance of winning -- still less than 50%. The (only) way to get OVER 50% is by card-counting -- though of course, the casinos don't like that.

Anyway, I thought I'd start with just this method first (without the card counting). I memorized the table in the book, and practiced first by using it with a blackjack computer program I downloaded from somewhere.

Then, ready to roll, I headed for the casino. (All Australian cities seem to have fully-fledged casinos nowadays....)

Actually, I did pretty well. I didn't bet very high, and over about a month I built my winnings up to around $500. That's nice for a university student. :)

But then, my luck began to change, and I lost it all -- plus an extra $50 -- in one night. That's when I decided to quit.

I figured that there must be better ways to make money.... The problem with casinos is that if you really do know how to win (like by card-counting at blackjack) -- even if they don't catch you explicitly card-counting, if you keep winning large amounts consistently they'll still ban you. The casino always wins in the end.

Seeing the movie "Casino" with Robert de Niro also didn't encourage me! I like my bones intact, thanks.... :)

(By the way, after saying all that, some people really do have a serious addiction to gambling.... It's important to know the serious down-side to casinos.... I haven't played blackjack for several years....)

> Re investing games, Robert Kiyosaki (of Rich
> Dad/Poor Dad fame) has a couple of board
> games out called Cashflow I & II that
> teach basic and advanced investing, money
> management, options, etc. The commodity
> trader's coach Van Tharp uses them in his
> trader training programs.

I have Cashflow 101 (the first one) -- it's pretty good. It mainly teaches you about real estate investment.... Stocks also appear in the game, but the game is not sophisticated enough to really teach you much about stocks (in my opinion). But for real estate -- from what I can tell -- it's great. :)

I think simulation games will probably become bigger and more popular -- both the "board" kind (like Cashflow 101 or Monopoly) and the "computer" kind....

They are a *fantastic* way to learn without losing "real" money. I found that playing Cashflow 101 really starts to change the way you think, and the way you view things. That's something you don't get from just reading....

> Simulations are a great way to at least
> learn the framework of a situation so when
> the realworld unexpected situations hit, you
> can cover the basics without thinking and
> innovate from there to handle the
> unexpected.

Yes, good point....

By the way, does anyone else recommend any other business or investment games they know of? I'd be very happy to learn about more.... :)

Thanks,

Dien

Re: Lay your cards on the table and prepare to loose
 

Hi Dien,

> Jason, that sounds incredibly interesting!
> Could you tell me more? :)

> Or if there's a section on your web site --
> or some ebook or book or something you've
> written -- I'd be interested to look into
> it.... :)

About 3 years ago I was the headline speaker in a series of seminars held in OZ (Sydney, Brisbane & Melboure) titled - PLAYING TO WIN! In these series of seminars I invited some of the most successful business people I new to be interviewed live in fornt of an audience and I learn't that there are some very common traits amoungst successful, wealthy people.

In my few years "playing" in the busines world, one thing I have learn't is there are some basic critera that set's a true business winner apart from the rest . . .

1 - Your own knowledge on a subject.

2 - The people you mix amd surround yourself with.

3 - The ability to follow trends and predict future market movements (this requires sound financial knowledge - it's vital if you want to be a success in big business that you can read the economy and try to predict some of its movements - no matter what market your in)

4 - The ability to understand human buying nature - what makes people buy!

5 - Sales ablility - this ones got me through when most others fail!

6 - And the final one I like to call - GRUNT! It's that deep down feeling that gets you through when most others fail - like a diesel engine! Sometimes you just need to throw caution to the wind, roll up your sleeves, and as the say in Australia ... Have A GO!, make a bet, hold your poker face, stick to your guns, and roll over whatever gets in the way.

And that final point is what most people cannot do - and for what it's worth, it's also the hardest thing to teach someone - I think in most cases it's the reason why people dont succeed.

They don't fail, they just don't make it to the line whens it's needed.

Sum that up in one sentence and it could be said - "Its the ability to make a decision and stick to it - if it looks like failing, you MAKE IT WORK".

Just a few thoughts, I'm sure some will disagree, but nobody can deny that tenacity is a common trait in most highly successful people.

Have a great day . . .
Jason van Hooft




Will you make it in mail order - have you got the GRUNT!

Where are they now? Gabe Kaplan from Welcome Back Kotter....
 

In the late 1970s, a television phenomenon was born. "Welcome Back Kotter" with Gabe Kaplan playing "Mr. Kotter," and the team of "sweathogs" - Vinny "I'm so confused" Barbarino (played by John Travolta), Arnold Horschack, Freddie "Hi there!" Washington, and Juan Epstein.

It was based on some of Gabe Kaplan's stand-up comedy. After "Welcome Back Kotter" ended in 1979, Gabe Kaplan did a few films, then disappeared from the entertainment scene. But that's because he had another card up his sleeve.

Gabe Kaplan is also a master poker player. In 1980, he won the first prize of $190,000 in the annual Super Bowl of Poker Tournament held in Lake Tahoe, which he also won a second time later.

In 1986, he won the Knights of The Round Table Champion's Tournament the only time it was held.

While he's never won the World Series of Poker, he's placed 2nd and 3rd many times.

I've read that his poker really made him a rich man (more than even his comedy).

So if you want to be a good poker player.... uh, become a comedian? That doesn't sound right.... :)

- Dien


Click here to relive those Sweathog days....

That's Golden Information about the Traits of Success....
 

G'day Jason.... :)

This is really golden information you've shared.... Thanks!

> In my few years "playing" in the
> busines world, one thing I have learn't is
> there are some basic critera that set's a
> true business winner apart from the rest ...

> 1 - Your own knowledge on a subject.

> 2 - The people you mix amd surround yourself
> with.

> 3 - The ability to follow trends and predict
> future market movements (this requires sound
> financial knowledge - it's vital if you want
> to be a success in big business that you can
> read the economy and try to predict some of
> its movements - no matter what market your
> in)

> 4 - The ability to understand human buying
> nature - what makes people buy!

> 5 - Sales ablility - this ones got me
> through when most others fail!

> 6 - And the final one I like to call -
> GRUNT! It's that deep down feeling that gets
> you through when most others fail - like a
> diesel engine! Sometimes you just need to
> throw caution to the wind, roll up your
> sleeves, and as the say in Australia ...
> Have A GO!, make a bet, hold your poker
> face, stick to your guns, and roll over
> whatever gets in the way.

> And that final point is what most people
> cannot do - and for what it's worth, it's
> also the hardest thing to teach someone - I
> think in most cases it's the reason why
> people dont succeed.

> They don't fail, they just don't make it to
> the line whens it's needed.

Thanks... I never really thought of this, what you say about point number 6.

Perhaps if you have the GRUNT as you say, then having it could get you stages 1-5 in time.... because you'll stick with it until you figure out HOW to make it work....

Thank you for sharing those very useful observations!

> Sum that up in one sentence and it could be
> said - "Its the ability to make a
> decision and stick to it - if it looks like
> failing, you MAKE IT WORK".

> Just a few thoughts, I'm sure some will
> disagree, but nobody can deny that tenacity
> is a common trait in most highly successful
> people.

Thanks Jason.... That's golden information. I'm going to print out those 6 points and stick 'em up on a wall somewhere (right next to the two mirrors).... :)

Jason, please let me know next time you're giving a seminar. I'd definitely like to try to go.... :)

Cheers :)

Dien

P.S. Jason, I just joined your private web site (joining is free for a limited time), I'm looking forward to checking it all out.... :)


Find more incredible wisdom at Jason's web site....

Simulation. Oh Baby. yes Yes YES!
 

With casinos, the best odds will still always work out in the casino's favour in the end.

Take Roulette. I can bet on Red or Black for odds that double my money - I bet $10 I win $10. Sounds good, right? Problem is, the Zero is green. So the chances of getting Red or Black are not quite 50/50.

If I bet on a single number I get paid from odds of 36 to 1. But there are 37 spots on the wheel. There's that darn zero again. And there's that small percentage which places the odds in the hands of the casino.

What this means is, if I play and play and play, the averages will have me see my money go into the hands of the casino, eventually.

Your story of the cards was a good example. You never had a chance to win anything. Eventually your money was going to leave you.

Onwards.

Simulation... it's not really a game you know. It's serious.

The defense department uses simulation a great deal. First with virtual equipment to train - basics and combat situations - and then with "war games" to add an extra bit of realism.

Pilots and flight simulators.

Fire and rescue crews simulate disasters and carry out procedures all the time.

The CPR dummy to simulate a person who needs mouth to mouth.

All of these things are simulations. All teach and help keep skills nice and sharp.

Jason wrote in his post,


GRUNT! It's that deep down feeling that gets you through when most others fail - like a diesel engine! Sometimes you just need to throw caution to the wind, roll up your sleeves, and as the say in Australia ... Have A GO!, make a bet, hold your poker face, stick to your guns, and roll over whatever gets in the way.

And that final point is what most people cannot do - and for what it's worth, it's also the hardest thing to teach someone - I think in most cases it's the reason why people dont succeed.

They don't fail, they just don't make it to the line whens it's needed.


I agree with it inasmuch as it being a reason for failing. But where I disagree is with the "it's also the hardest thing to teach someone" part.

I believe it can be taught. By simulating it.

To me, the hardest thing in the world to do would be to shoot another human being.

The army knows this is a hard thing for a person to do. So they simulate shooting a human. Soldiers learn to shoot human shapes. After a while it then becomes easier for them to shoot the enemy.

Now, if you can make it easy for a person to shoot another person by having them run through a simulation, you can surely have someone "Have a Go" by running them through a no-risk simulation.

Because it all depends on WHY they won't have a go.

Mostly it's money.

A lot of people bought the Chattel Report. Now even though it's a great product, not everyone who bought it will even try it. Why? Because it means risking money on doing something they've never done before.

I'm sure if a game existed which simulated the Chattel Report more people would "Have a go".

They'd play and play and play. All the while they'd be learning and gaining a certain level of experience and CONFIDENCE. And they'd be more willing to "Have a go". Why? Because as you said Dien, "they will view things differently".

They'll see it's not so hard after all. Oh sure not everyone will go out and "Have a go" but far more will.

I don't have CASHFLOW, but from what I understand from what I've heard, it teaches about investing. Which is good. BUT, does it teach you how to get hold of the money you're going to use to do this investing? Does it allow you to practice basic business - buy low and sell high, stock keeping and cash records, etc.? Do the other players come into the game as competition and thus simulate a real "market"?

Now about other types of simulation...

With regards to business simulation... I'm not aware of anything that's on the market currently which is anything more than a game of chance. Though, there are whispers in the wind about something coming.

I do know there's a game which teaches Australian's how Parliament works. It's called Parliament and was created after a guy took his kids to Parliament to show them how it worked and discovered that even there the answer couldn't be found.

So he created a game which explained it. And it's endorsed by Government too. And, since he developed it I believe he also created a similar game for Canadians to learn how their Parliament works. (perhaps he could create a game to teach Australians the words of our national anthem :o))

A while back I mentioned an idea of turning the Square One Workshops into a game. As I think of it again now, I think a good starting game could be one which teaches the POA.

As each exit is approached and delt with a certain CONFIDENCE and BELIEF of ability would grow. Sure people'd know it's a game. But it'd still work because the game would be a simulation and imprint on the subconscious to a degree.

Personally I'd like to see more educational games out there. They'd help keep our skills sharp when not in use. And would make it easier for our children to learn skills without the time and finances it's taken most of us. And both of those kinds of investment - self and kids - are the best kinds of investments.

Michael (Game Boy) Ross.

P.S. Imagine a public company whose revenue comes soley from sales of a "How to invest in the stock market" game. HA!