Wall Street Practice Leans on Poker Theory

In his book Beating the Street, Peter Lynch draws comparisons to playing the markets on Wall Street with playing poker - not the first to do so. If you bet without looking at your cards you can't expect to do well, and the same is true if you buy stocks for a company that you know nothing about. Poker players attempt to get every edge possible, stacking the odds in their favor, and good investors should do the same. There are many similarities between poker and investing, and many of the best in either business has taken the time to study both.