Life Imitates Poker
Yesterday I read a poker tip from a brilliant psychologist and professional poker player named Mike Caro. The tip was: "What you already have invested in the pot... doesn't matter."
In poker it is the concept that you should fold, call, or bet based on the size of the pot, what cards you have, what you think your opponents have, and the chances of improving your hand, not based on how much money you personally put into the pot.
Think about that for a second.
If you don't play poker, it doesn't matter, I'm much more interested in the concept's application in life.
The author went on to give the example of buying a collector's item for $300,000. Later the item depreciates and is only worth $75,000. A collector comes along and offers $150,000 for the item. Do you take the money? Obviously the smart choice is to take the money and realize you got a good deal. Your initial investment shouldn't even be a factor in the decision.
How many times do we fight battles we know we can't win because we feel we've already invested so much we feel like we can't give up? Instead we should consider what we have to invest or risk now in comparison to the desired outcome.
Amy gets it at work a lot. I told her I was going to have this quote framed for her. Her clients will be in the middle of a nasty divorce and incapable of compromise. Amy can explain that the client will refuse to take a reasonable compromise, even if it means they will pay Amy more money to settle the case than they will get if they win. And that's if they win.
Sometimes choosing not to put anymore time, money, or emotion into a bad relationship, a losing, fight, or an unprofitable venture is the most profitable choice you can make.
In poker it is the concept that you should fold, call, or bet based on the size of the pot, what cards you have, what you think your opponents have, and the chances of improving your hand, not based on how much money you personally put into the pot.
Think about that for a second.
If you don't play poker, it doesn't matter, I'm much more interested in the concept's application in life.
The author went on to give the example of buying a collector's item for $300,000. Later the item depreciates and is only worth $75,000. A collector comes along and offers $150,000 for the item. Do you take the money? Obviously the smart choice is to take the money and realize you got a good deal. Your initial investment shouldn't even be a factor in the decision.
How many times do we fight battles we know we can't win because we feel we've already invested so much we feel like we can't give up? Instead we should consider what we have to invest or risk now in comparison to the desired outcome.
Amy gets it at work a lot. I told her I was going to have this quote framed for her. Her clients will be in the middle of a nasty divorce and incapable of compromise. Amy can explain that the client will refuse to take a reasonable compromise, even if it means they will pay Amy more money to settle the case than they will get if they win. And that's if they win.
Sometimes choosing not to put anymore time, money, or emotion into a bad relationship, a losing, fight, or an unprofitable venture is the most profitable choice you can make.
posted by Exvestigator at 1:56 PM
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