Arguably the greatest investor of our lifetimes, Warren Buffett has another passion (apart from investing). And that is – the card game of Bridge. And from what is known in public domain, he engages in the game at least four times a week.
As per a Washington Post article, Buffett recalled a 1995 trip to China organized by his Bridge partner and billionaire Bill Gates and his wife, Melinda. About seven couples participated. Gates showed up with a handful of bridge books. The billionaires (Buffett & Gates) proceeded to play throughout the journey. It is said that while everyone was looking at the scenery, Buffett & Gates were playing Bridge most of the time.
So why is it that these billionaires love Bridge?
When asked about why he likes the game, the Oracle of Omaha said he enjoys the game for the intellectual stimulation. For him, it’s neither relaxing nor tension-filled and in fact, just a good mind exercise. And Buffett is not alone. Many in the investing world like the game and there’s a good reason for it. Ben Graham, an influential investor, and mentor to Warren Buffett, noted that both bridge and investing require a solid, well-considered strategy. Although setbacks can happen, those who are disciplined and follow a clever plan tend to find success in the end.
So, can playing Bridge really make one a better investor?
Let’s try to answer this.
Bridge is a lot like investing, but the stakes are much lower.
Buffett once elaborated between the two as – “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 behavior 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.”
And mind you, it is not easy to master and requires patience initially. For example – the bidding process, which is the first part of a bridge game, has so many complex rules that it can be overwhelming for a beginner. Additionally, because bridge involves two teams of partners competing against each other, good communication is crucial.
Bridge has many similarities with business. In the game, a player must either form the best possible contract with their partner using the dealt cards or decide to defend against the contract made by the opposing team. Successful bidding in bridge demands excellent communication skills to win hands. Players need considerable mental agility to choose the most effective strategy, which involves analyzing known information and making educated guesses about the opponents’ cards. Concentration is crucial when playing each card, and despite skill levels, luck still plays a part in the outcome.
If you are tempted by the idea of this game, then it is worth noting that nowadays, you don’t need to sit in front of other players physically.
The remarkable rise of gaming platforms for Indian players, as seen with sectors like fantasy sports and online poker, extends into other games of skill, including Bridge. Notably, playing Bridge online harnesses cognitive skills such as strategic thinking, probability assessment, and risk management—capabilities that are directly transferable to investing.
Just as gaming platforms have evolved from niche to mainstream, attracting both players and investors, the skills developed in online Bridge could similarly benefit individuals in the financial markets. This intersection of gaming and investment acumen demonstrates a unique, symbiotic relationship: as users sharpen their analytical and decision-making skills on platforms like those offering Bridge, they simultaneously equip themselves with the psychological and strategic prowess necessary for successful investing.
Coming back to the main topic, while playing bridge won’t directly make someone a savvy investor, it’s intriguing to see how many aspects of the game mirror those in investing.
One of the best practices of the game, as emphasized by Ben Graham, the mentor of Warren Buffett, is built around giving importance to proper play. He said once – “I recall to those of you who are bridge players the emphasis that bridge experts place on playing a hand right rather than on playing it successfully. Because, as you know, if you play it right you are going to make money and if you play it wrong you lose money – in the long run. There is a beautiful little story about the man who was the weaker bridge player of the husband-and-wife team. It seems he bid a grand slam, and at the end he said very triumphantly to his wife ‘I saw you making faces at me all the time, but you notice I not only bid this grand slam but I made it. What can you say about that?’ And his wife replied very dourly, ‘If you had played it right you would have lost it.’”
As per opinion piece in NYT, is still early days and while computers can now routinely beat all but a handful of chess grandmasters, they can’t come close to outplaying the world’s finest bridge players. Why is this? Because computers can understand math, but they can’t understand people – at least not yet.