In Part 1, we took three of Poker theoretician Mike Caro's tips from Doyle Brunson's Super/System 2 and applied them to investing. In Part 2, we will take a look at three more tips from the Mike Caro University (MCU) and discuss the importance of valuation, being a forward-looking investor, and the idea that investors do not get bonuses for making tough choices.

MCU Tip No. 1: In the beginning, everything was even money.
The lesson: An investor's advantage comes from the ability to gauge valuation and expectations.

As Matt Damon said in the movie Rounders, "Get your chips in when you have the best of it; protect them when you don't." That's the key. The question: How do you know when you have the best of it?

The answer: By understanding valuation.

In poker, every player gets dealt the same cards over the long run. The fundamental difference between long-run winners and losers is an understanding of value -- the value of the cards you're dealt, the value of your position relative to the other players at the table, and how the value of your cards changes given the actions of the other players at the table.