Beyer and Warren Buffet

[karlskorner]

Good article about investing at the race track.

http://www.fool.com/news/foth/2001/foth010803.htm?ref=em_fwcm1

Karl

[karlskorner]

small mistake

http:www.fool.com/news/foth/2001/foth010803.htm?ref=em_fwcm1

[PaceAdvantage]

Good link Karl....thanks...


==PA

I would say there are more similarities between handicapping and the investing world than these guys would admit.

Both are looking at the stock and the price(odds)
to decide if we want to invest(bet)

We may make a decision based on what an adviser ,investment company,(tip sheet) or what some guy on the TV said about a particular stock(horse)

And what scares me is that the stock market can be influenced by factors that have nothing to do with the stock directly.The president can fart funny and the Dow Jones index drops 100 points.

Try saying ," you know,the horse that beat Cigar in his last race dropped dead yesterday,so I think I will bet on the #5 horse today" and you will be doing the same type of bad rationalization exercise.

[so.cal.fan]

Investing on horse races is much more conservative and safe than the stock market!
If I bet horses for the next hundred years, I can't possible lose as much as I lost in 2000! <sigh>

[Rick Ransom]

Yeah, and investing in stocks is pretty much limited to about 25-30% per year no matter how good you are. Horse racing can be 100-300% or more depending on how much you know and how hard you're willing to work.

[tanda]

Unfortunately, the crowd in stocks does 8-10% profit a year. The crowd at handicapping does -20% per bet. You can match the crowd and do ok in stocks. You can beat the crowd by 19% and still lose money in handicapping.

[Rick Ransom]

tanda,

You're absolutely right. It's harder to win at horse racing, but it is possible, and if you do, the % profit is higher. If you have a large bankroll though, it wouldn't be possible to bet enough at horse racing without affecting your odds, so someone with millions would be better off in the stock market. Unfortunately, I'm not in this category.

[anotherdave]

Also when you make 10% on your money at the track, that isn't an annual return. The same money is used. I'm up about $3000 this year when the most I had at stake was $1000. My profit is only about 7%, but I've quadrupled my money.

[Rick Ransom]

anotherdave,

I look at return on bankroll per year rather than ROI based on $ bet. You really need to take into account the risk you're taking. Some of these guys making 2-3% might be better off in other investments for the same level of risk. I'm pretty conservative, so my assumptions would be lower than most but horse racing (and sports betting I might add) seems like a better investment to me for someone with a moderate amount of money to risk.

[tanda]

I agree that are edge is the ability to invest our bankroll many times a year. It allows tremondous compounding.