ROI

[karlskorner]

Over on the Netcapper site this weeks quote from Steve Fierro The Four Quarters of Horse Investing

"ROI (Return on Investment) is fine, but how much money did I actually put in my pocket and keep ?"

Now that is a basic question I have asked numerous times. In my simple vocabulary, it is the differance between "walking in money" and "walking out money"

[andicap]

I

Do I need to subtract for the beers or can that go under "living expenses."?

:D


Seriously ROI means nothing if you're putting more money through the window at lower risks (ie. higher percentage bets, smaller losing streaks, greater conservation of bankroll, minimal risk of runouts and ruin.)

that doesn't necessarily mean betting just chalk -- it could mean betting several horses a race. I know a guy who has a 4-5% ROI betting all of his contenders to win as long as they are 6-1 and up (he's also made it work using a 5-1 ML at some tracks.).

right now 5% ROI looks pretty good in this economy. You won't get that in bonds or cash instruments and who knows what happens with the stock market after its run up.

a 20% ROI with a 12% hit rate and long losing streaks could be potentially negative if it causes you to lower your bet size during your streak so that when you finally win, your bet size is lower than it would have been a week ago.

Hitting more consistently by playing multiple horses will enable me to maintain a steady bankroll and operate with less fear of long losing streaks and gambler's ruin.

Everyone has a different plan, but ROI IMHO is not always the bottom line.

[cj]

The bottom line is...

Amount returned - amount bet = profit...I'll take $50,000 with a 5% ROI over $10,000 with a 20% ROI anyday.

[VetScratch]

My best TDC (track degenerate co-dependent) friend has been laboriously tracking a BRIS Trifecta system that shows a 5-year history of 150% ROI ($5Net per $2Bet).

On paper, it took him down $6k before rebounding but is now comfortably in the black. He plans to plunge if it is still working by Labor Day.

I told him that a hundred others are surely doing the same thing, and they will all collide on Labor Day, a traditional weekend for big Demolition Derbies! :)