The subject of financial investment is such a wide and varied area. We all know (or should know), that investing surplus funds is a sound idea; nothing new there. If you make the decision to invest, what investment options do you have?
1. Property – unit,
house, holiday house, commercial property, a managed property investment fund etc.
2. Shares – stock options, different stock investment sectors such as small capitalisation mining companies, international or local share funds etc.
3. Fixed Interest – bonds, convertible notes, fixed deposits etc
The above are your major investments categories in which you may be looking to invest.
These are the ‘traditional’ type of investments however there are other investment areas which are just as, or more profitable than your main ‘stable’ of investment options. These alternative investment options include tree crops, vintage cars, wines, art, other collectables and also sports betting and horse racing!
As the majority of people do not understand the betting industry, they generally scoff at the idea of sports/horse race betting as a legitimate investment option. That is because they have only been exposed to one side of the business, the entertainment side. Of course gambling is generally painted in an ordinary light in the media where it is linked to family break downs and suicides. The perception among those who haven’t been enlightened is that if you bet often, you must have a gambling problem!
“If the truth be known many who play the stockmarket are the biggest gamblers around.”
They are never labelled gamblers, nor do they believe that they are gambling because their gambling vehicle is not horses but shares in companies. They like to think of their random and uneducated decisions as being an ‘investment’ rather than a bet. In this light, it is OK to lose money because ‘it is an investment’. Many are simply betting on the price of a share just the same as an uneducated sports bettor who makes a decision on the likely outcome of a game.
The purpose of this article is to show that gambling can be a serious and profitable business as well as a fun pastime. I decided to write this article after speaking with a good mate of mine who happens to be financial advisor to ‘high net worth’ clients. You may be surprised and interested to note that he sees sports betting as playing a very important role in his investment portfolio. He knows very little about sports but he sees it as a very serious business and he follows our selections ‘to the letter’. (Not that he would tell his clients that he invests in sport as I am sure they just wouldn’t ‘get it’.)
The similarities between the more ‘traditional’ type investments and gambling are many. We are all playing the same game, which is to . . .
beat the market and optimize our total wealth.
Financial markets such as the stockmarket are generally efficient and represent the general view of the aggregate of those that invest into the market. Investing in any financial market (including the sports betting market) raises financial questions involving decision making under uncertainty. Many of those that play such markets simply do not understand just what they are up against.
People go to financial advisors for advice on how to best invest their money. They are thought to be the experts. They have been to University and have completed courses through the Australian Securities Institute to become an advisor. It is the same with other specialised services, such as doctors and solicitors. People recognise the specialised knowledge that these guys have and understand the value of paying such experts for their opinions.
I believe the reason to why more aren’t successful in gambling is that the majority of punters have no idea what they are up against. They believe that they can beat the game with no specific specialised knowledge. There is a price you have to pay to gain the knowledge and experience required to become successful.
This is very similar for both traditional investment advisors and also in the gambling field. Some advisors are better than others, as are some investments and some investment funds are better than others. Some investment funds make excellent returns for their clients however, on the other hand, the majority can’t even beat the average based on the returns of the ‘All Ords’ index!
I can see myself starting to get off track here.
Professional gambling is not for everyone, however I truly believe that it is within reach of everyone. Now there are two ways in which you can make a living out of gambling.
1. You can spend years studying mathematics and learn the ins and the outs of your chosen betting field to hopefully build the skills necessary to make consistent profits
2. You can pay those that have trodden the path above for their specialised knowledge and skill and then focus your attention on becoming an astute gambling portfolio manager.
Both methods will provide very similar betting results. Gambling is like any other profession. You simply cannot become successful without truly applying yourself and spending the time (and the money), to learn and become proficient. (Contrary to what most ‘retail’ punters would suggest). It is no different to a financial advisor who studies commerce at university and then completes a Diploma of Financial Markets at the Securities Institute. They have paid the necessary price (both in time and money), to obtain the required information to pursue a career in their chosen field of endeavour.
The thing with sports/horse racing is that punters expect wealth and success to come to them while they are doing nothing to improve their skills. I believe this is largely due to the fact that they do not understand what they are up against and how tough it is for your average casual punter these days to turn a profit. closing times