Wednesday, August 5, 2009

fourth seeks three

I may have to retract my dismissal of bridge as a game with relevance to the world of finance. Warren Buffett apparently thinks otherwise.

On one occasion [Buffett] is reported to have said: "I wouldn’t mind going to jail if I had three cellmates who played bridge".

[know the feeling - thought it would depend how well they played bridge]

Buffett himself says about bridge: "It’s got to be the best intellectual exercise out there. You’re seeing through new situations every ten minutes…In the stock market you don’t base your decisions on what the market is doing, but on what you think is rational….Bridge is about weighing gain/loss ratios. You’re doing calculations all the time."( Forbes June 2,1997)

On another occasion he described the similarities between bridge and investment as follows: "The approach and strategies are very similar in that you gather all the information you can and then keep adding to that base of information as things develop. You do whatever the probabilities indicated based on the knowledge that you have at that time, but you are always willing to modify your behaviour or your approach as you get new information. In bridge, you behave in a way that gets the best from your partner. And in business, you behave in the way that gets the best from your managers and your employees."

Commenting on the new challenge match in June, Buffett said: "I spend twelve hours a week - a little over 10% of my waking hours - playing the game. Now I am trying to figure out how to get by on less sleep in order to fit in a few more hands.

2006 interview quoted by Jonathan Davis at

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