| The subject of financial investment is such a | | | | the Securities Institute. They have paid the |
| wide and varied area. We all know (or should | | | | necessary price (both in time and money), to |
| know), that investing surplus funds is a | | | | obtain the required information to pursue a |
| sound idea; nothing new there. If you make | | | | career in their chosen field of endeavour. |
| the decision to invest, what investment | | | | |
| options do you have? | | | | The thing with sports/horse racing is that |
| | | | punters expect wealth and success to come to |
| 1. Property - unit, house, holiday house, | | | | them while they are doing nothing to improve |
| commercial property, a managed property | | | | their skills. I believe this is largely due |
| investment fund etc. | | | | to the fact that they do not understand what |
| | | | they are up against and how tough it is for |
| 2. Shares - stock options, different stock | | | | your average casual punter these days to turn |
| investment sectors such as small | | | | a profit. |
| capitalisation mining companies, | | | | |
| international or local share funds etc. | | | | Anyway, back to the purpose of this article. |
| | | | It is well and truly possible for anyone to |
| 3. Fixed Interest - bonds, convertible notes, | | | | become a successful and highly profitable |
| fixed deposits etc | | | | gambler. |
| | | | |
| The above are your major investments | | | | As we saw above, there are two choices that |
| categories in which you may be looking to | | | | you could make. One requires years of study |
| invest. | | | | to develop the required specialised knowledge |
| | | | to allow you to become successful; the second |
| These are the 'traditional' type of | | | | option can be thought of as being the easier |
| investments however there are other | | | | path. |
| investment areas which are just as, or more | | | | |
| profitable than your main 'stable' of | | | | Just as you may well pay a financial advisor |
| investment options. These alternative | | | | for their advice, you have the option to pay |
| investment options include tree crops, | | | | an expert in gambling for their betting |
| vintage cars, wines, art, other collectables | | | | advice. Doing so will leave you as purely a |
| and also sports betting and horse racing! | | | | manager of your investments. |
| | | | |
| As the majority of people do not understand | | | | If you have ever been to a financial advisor, |
| the betting industry, they generally scoff at | | | | you will realise that they love their pie |
| the idea of sports/horse race betting as a | | | | charts and love to talk about diversification |
| legitimate investment option. That is because | | | | and asset allocation. They split your total |
| they have only been exposed to one side of | | | | investment wealth up into different areas |
| the business, the entertainment side. Of | | | | with the aim of reducing risk. |
| course gambling is generally painted in an | | | | |
| ordinary light in the media where it is | | | | Well consider doing something similar with |
| linked to family break downs and suicides. | | | | gambling. There are a number of excellent |
| The perception among those who haven't been | | | | sports/racing services which show high |
| enlightened is that if you bet often, you | | | | returns and have been showing high returns |
| must have a gambling problem! | | | | for a good period. You may like to build a |
| | | | portfolio of gambling investment options |
| "If the truth be known many who play the | | | | based around the good services. How you |
| stockmarket are the biggest gamblers around." | | | | allocate your resources for the different |
| | | | services you may use is up to you. For |
| They are never labelled gamblers, nor do they | | | | example your gambling portfolio may comprise |
| believe that they are gambling because their | | | | of two horse racing approaches, two tennis |
| gambling vehicle is not horses but shares in | | | | approaches, one AFL, one NRL and one |
| companies. They like to think of their random | | | | Super12's for example. |
| and uneducated decisions as being an | | | | |
| 'investment' rather than a bet. In this | | | | After sourcing your betting information from |
| light, it is OK to lose money because 'it is | | | | a service, you have the task of managing your |
| an investment'. Many are simply betting on | | | | portfolio to maximise the rate of growth of |
| the price of a share just the same as an | | | | your bank and to minimise your risk. For |
| uneducated sports bettor who makes a decision | | | | those that take the time to look at the |
| on the likely outcome of a game. | | | | possibilities of sports betting investment, |
| | | | you can understand why it makes a lot of |
| The purpose of this article is to show that | | | | sense from an investment angle. You invest |
| gambling can be a serious and profitable | | | | your money for a whole year in say the |
| business as well as a fun pastime. I decided | | | | stockmarket hoping for a standard 10% return. |
| to write this article after speaking with a | | | | You can make that on every single dollar that |
| good mate of mine who happens to be financial | | | | you outlay in some sports! |
| advisor to 'high net worth' clients. You may | | | | |
| be surprised and interested to note that he | | | | Investing in a conservative manner can easily |
| sees sports betting as playing a very | | | | see you double your original investment |
| important role in his investment portfolio. | | | | capital within one year. Returns unheard of |
| He knows very little about sports but he sees | | | | in other 'traditional' methods of investment |
| it as a very serious business and he follows | | | | and yet contrary to what most believe it is |
| our selections 'to the letter'. (Not that he | | | | unbelievably safe if you find a reliable |
| would tell his clients that he invests in | | | | source to purchase your advice from. |
| sport as I am sure they just wouldn't 'get | | | | |
| it'.) | | | | In sports betting you can use mathematics to |
| | | | calculate very accurately worst case |
| The similarities between the more | | | | scenarios and no, that is not generally a |
| 'traditional' type investments and gambling | | | | total loss of starting capital. We have a |
| are many. We are all playing the same game, | | | | simulation program available on the website |
| which is to . . .beat the market and optimize | | | | which you can access from the following link |
| our total wealth. | | | | Punting Ace Simulation Program which will |
| | | | give you an excellent idea of what you can |
| Financial markets such as the stockmarket are | | | | expect to achieve based on certain criteria. |
| generally efficient and represent the general | | | | |
| view of the aggregate of those that invest | | | | We also have programs which will simulate |
| into the market. Investing in any financial | | | | your projected performance based on certain |
| market (including the sports betting market) | | | | bankroll settings. To simulate a year of our |
| raises financial questions involving decision | | | | tennis package, select the following link |
| making under uncertainty. Many of those that | | | | Punting Ace Tennis Simulation or to simulate |
| play such markets simply do not understand | | | | a year of our AFL betting package, select the |
| just what they are up against. | | | | following link Punting Ace AFL Simulation. |
| | | | |
| People go to financial advisors for advice on | | | | Summary |
| how to best invest their money. They are | | | | |
| thought to be the experts. They have been to | | | | If you are not happy "putting all your eggs |
| University and have completed courses through | | | | in one basket", why not consider sports |
| the Australian Securities Institute to become | | | | betting as an "alternative investment" |
| an advisor. It is the same with other | | | | similar to tree crop investments or hedge |
| specialised services, such as doctors and | | | | funds. Any prudent financial planner will |
| solicitors. People recognise the specialised | | | | explain to you the benefits of diversifying |
| knowledge that these guys have and understand | | | | across a number of different markets and |
| the value of paying such experts for their | | | | investment products. Indeed, investment |
| opinions. | | | | products such as options and instalment |
| | | | warrants (and to some extent margin lending), |
| I believe the reason to why more aren't | | | | are designed to "enhance" your overall |
| successful in gambling is that the majority | | | | portfolio returns and as such, traditional |
| of punters have no idea what they are up | | | | investment advisers may allocate a |
| against. They believe that they can beat the | | | | "percentage" of your overall portfolio to |
| game with no specific specialised knowledge. | | | | these products. |
| There is a price you have to pay to gain the | | | | |
| knowledge and experience required to become | | | | With risk adjusted returns far in excess of |
| successful. | | | | "main stream" investment products, why |
| | | | wouldn't you apply a percentage of your |
| This is very similar for both traditional | | | | portfolio to sports betting? As your |
| investment advisors and also in the gambling | | | | financial adviser will agree, sports betting |
| field. Some advisors are better than others, | | | | is not correlated with any main stream |
| as are some investments and some investment | | | | investment markets, and indeed given the |
| funds are better than others. Some investment | | | | disappointing recent performance of the stock |
| funds make excellent returns for their | | | | market (with the exception of last years |
| clients however, on the other hand, the | | | | return of approx 25%) the current investment |
| majority can't even beat the average based on | | | | markets are awash with products that are |
| the returns of the 'All Ords' index! | | | | non-correlated to the stockmarket. For |
| | | | example, hedge funds, tree investments, |
| I can see myself starting to get off track | | | | caravan park property trusts and chicken |
| here. | | | | farms (yes that last one is actually true). |
| | | | Therefore sports betting should at least be |
| Professional gambling is not for everyone, | | | | considered as part of a prudent "diversified" |
| however I truly believe that it is within | | | | investment portfolio. |
| reach of everyone. Now there are two ways in | | | | |
| which you can make a living out of gambling. | | | | Sport Betting Investment Steps |
| | | | |
| 1. You can spend years studying mathematics | | | | 1. Decide from day one that you have the |
| and learn the ins and the outs of your chosen | | | | discipline to follow your plan through and |
| betting field to hopefully build the skills | | | | that you will operate in a business like |
| necessary to make consistent profits | | | | fashion and will keep records and the like. |
| | | | |
| 2. You can pay those that have trodden the | | | | 2. Find a reputable information provider for |
| path above for their specialised knowledge | | | | your selections. Remember the goal is for you |
| and skill and then focus your attention on | | | | to be only the portfolio manager. You don't |
| becoming an astute gambling portfolio | | | | want to have to come up with the selections; |
| manager. | | | | leave that to those that have proven track |
| | | | records and are experts in their fields. You |
| Both methods will provide very similar | | | | may wish to start by looking at |
| betting results. Gambling is like any other | | | | |
| profession. You simply cannot become | | | | 3. Decide on how you will divide up your |
| successful without truly applying yourself | | | | total starting capital over the information |
| and spending the time (and the money), to | | | | provider(s)/sport(s) which you have gathered. |
| learn and become proficient. (Contrary to | | | | |
| what most 'retail' punters would suggest). It | | | | 4. Now follow through with your plan setting |
| is no different to a financial advisor who | | | | aside time for constant reflection and self |
| studies commerce at university and then | | | | evaluation in an attempt to maximise your |
| completes a Diploma of Financial Markets at | | | | returns whilst minimising your risk. |