How to Alt-Invest like a Poker Champion.

We put together a shortlist of our favorite terminology we picked up studying David Sklansky’s ‘The Theory of Poker’
May 1, 2023

Simple poker principles = Alt-Invesment principles.

Crazy right?

While mastering the art of alt-investments can seem like juggling knives at first, with a bit of time, effort, and an understanding of how poker works both on and off the felt, anyone can take their financial future into their own hands. (And hopefully, with all fingers still intact.) 

If you’ve ever played a game of poker before, you're probably familiar with the concept of reading your opponents, bluffing, and evaluating the risk versus reward of each move. 

Well, the funny thing here is… 

These same skills can come in handy when it comes to alt investing and acquisitions!  

We put together a shortlist of our favorite terminology we picked up studying David Sklansky’s ‘The Theory of Poker’

For instance, in poker, a "big blind" is a forced bet that players must make before any cards are dealt. In the world of alt investing, a similar concept exists called a "deal fee," which is a fee paid to a broker or intermediary for facilitating the transaction. Both are required costs that must be factored into one's overall strategy.

"blocker" in poker. A blocker is a card that makes it less likely that an opponent has a certain hand. Similarly, in alt investing, a "strategic asset" can serve as a blocker, making it more difficult for competitors to enter a market or industry.

In poker, a "pot odds" calculation is used to determine whether it's profitable to make a particular bet. In alt investing, a similar calculation can be made to determine whether an acquisition is likely to generate a positive return on investment.

One of the most important skills in poker is the ability to read your opponents, and in alt investing, a similar skill is required to assess the value and potential of a target company. Due diligence is crucial, and just like in poker, it's important to have a good understanding of the strengths and weaknesses of your opponent, or in this case, the target company.

Finally, just as poker players can use strategies like bluffing and parlaying to increase their winnings, alternative asset investors can use similar tactics to create "economic parlays." By strategically combining different assets, such as using cryptocurrency to purchase real estate, investors can maximize their returns and create a synergy that's greater than the sum of its parts.

Who knew a little bit of gambling could be so educational?


David Sklansky
David Sklansky

Expert players don't rely on luck. They're at war with luck. They use their skill to eliminate as much luck as possible.