Sports betting vs Investing
Article popped up today on newsletter from Schwab.
Briefly scanned it and in short took away that the author made a very large (and in my opinion wrong) assumption.
- All investors are well educated, disciplined and prepared to invest (numerous examples of posters who bet and meet these criteria here)
- all sports bettors are poorly educated, undisciplined and in general dart throwers who chase whatever the chalkiest and most publicly favored side is. (And a few posters who exemplify this here too)
The only “difference” between stocks and sports boils down to this - you can be a complete moron and chase whoever Joe public is buying and make money short term thanks to supply and demand. Even a poorly managed company can see a pop in their stock if people are buying shares and those who got in before a peak can show a paper profit during ownership and have a chance to sell at a real profit at anytime. Poorly managed companies don’t always fall out of favor and well managed companies don’t always attract the public support.
Sports it doesn’t matter who the public favors if you are buy and hold to close type. Yes, you’re getting a worse price going with the public - but long term it’s possible to get lucky and win of the public team wins. Long term it SHOULD cost you - but long term is measured in its smallest sample size in terms of 10,000 events. 10,000 bets is decades or longer for most. You CAN have a lucky streak that goes years by simply being luckier than most in either arena.
Disciplined bettors will outperform dart throwing investors chasing long term though - despite what the author here says.
Article popped up today on newsletter from Schwab.
Briefly scanned it and in short took away that the author made a very large (and in my opinion wrong) assumption.
- All investors are well educated, disciplined and prepared to invest (numerous examples of posters who bet and meet these criteria here)
- all sports bettors are poorly educated, undisciplined and in general dart throwers who chase whatever the chalkiest and most publicly favored side is. (And a few posters who exemplify this here too)
The only “difference” between stocks and sports boils down to this - you can be a complete moron and chase whoever Joe public is buying and make money short term thanks to supply and demand. Even a poorly managed company can see a pop in their stock if people are buying shares and those who got in before a peak can show a paper profit during ownership and have a chance to sell at a real profit at anytime. Poorly managed companies don’t always fall out of favor and well managed companies don’t always attract the public support.
Sports it doesn’t matter who the public favors if you are buy and hold to close type. Yes, you’re getting a worse price going with the public - but long term it’s possible to get lucky and win of the public team wins. Long term it SHOULD cost you - but long term is measured in its smallest sample size in terms of 10,000 events. 10,000 bets is decades or longer for most. You CAN have a lucky streak that goes years by simply being luckier than most in either arena.
Disciplined bettors will outperform dart throwing investors chasing long term though - despite what the author here says.
