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The Most Underrated Book On Investment

  • David Sklansky's The Theory of Poker is the most underrated book on investment.
  • Risk and reward matter more in poker than "winning" or "losing" individual hands; the same logic holds true in investing.
  • Learning to deal with uncertainty is vital in both poker and investment.

This article appears in the February 2015 edition of The Contrarian Value Newsletter.

If you asked me to recommend one book on investing, my answer would be different than most investment managers. In fact, my favorite book on investment isn't technically a book on investment at all. Rather, David Sklansky's The Theory of Poker is my top recommendation.

It might seem strange to pick out a poker book to learn about investment, but poker and investing have a lot in common. With both, you have to make decisions on selection and price, whether a hand is worth playing or a stock is a good buy. With both, you have to deal with portfolio management. In poker, going all-in pre-flop with low suited connectors is generally not good "portfolio management," while in investment, putting 100% of your portfolio into any single idea is often foolhardy. Read More Here!