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

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.

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

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!

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....

Thanks for your reply Dein,

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

Your seat as my special guest is reserved Dein. We are currently planning a small 1 day seminar in Sydney for December and another 4 day Seminar for February 2001.

The smaller seminar will be with about 40 of my "Diamond Clients". These are clients of mine who are marketing managers, CEO's and business owners who are currently in my "Power Achievers Program".

The second seminar will be titled "THE MAIL ORDER MASTERS SEMINAR 2001"

This will be huge and probably held in either Sydney or at Surfers Paradise, Gold Coast. This one is still in the planning stage but I will be bringing in some of the most successful Mail Order Entrepreneurs in OZ (and hopefully one or two from the USA) to speak and run workshops. We will have about 200 people attending this.

I will be posting full details on my website in around a month.

> 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.... :)

Thanks for the plug! HA HA!

Have a great day...
Jason van Hooft

P.S. Dein we have to catch up for a coffee when I'm next in Sydney and swap some ideas around!

Jason,

Thanks for the invitation to your seminar(s) -- I'm flattered and pretty excited about it!

And catching up for a cup of coffee sounds great too.... Let me know when you're in Sydney and let's meet.... :)

(I also travel to Melbourne occasionally too.... I'm not sure where you're located....)

I've been reading through some of the very informative articles on your web site....

I also just downloaded your new 319-page "Business Start-Up Guide" ebook and have looked through it quickly.... It's full of some excellent ideas. I'm going to sit down and study several of the ideas more fully....

Thanks Jason.... :)

- Dien

P.S. Don't worry about the name thing.... I know I've got a weirdly-spelled name. It's pronounced like "Dean" by the way, for those who have been wondering.... :)


Jason van Hooft's web site -- membership is free for a limited time....

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.

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