Should you Invest in Sports or Stocks?

Traditionally, those who wanted to invest their money in a potentially lucrative field would turn to the stock market. Seeing the value of shares grow at remarkable rates (check Apple, Microsoft, Amazon amongst others) has given the stock market a reputation of being a place where fortunes can be made. However, just as easily, fortunes can be lost. For example, extremely successful billionaire Warren Buffett has recently lost $750,000,000 after investing in Tesco, only to see share prices plummet. Nothing is guaranteed, which begs the question “is there an alternative?”.

We think that there is – invest in sports betting. Firstly though, we should address the differences between an experienced gambler (investor) and a traditional punter. An experienced gambler is someone who knows the fundamentals of money management, finding an edge and realistic long term goals. A traditional punter is one who bets on impulse, ‘gut feeling’ and without the long term goals or strategies. To be successful, you need to know how to gain an advantage over the market, and have a solid understanding of how to remain disciplined.7 Golden Rules

Here are a few reasons why sports betting can be a solid investment if approached correctly.

1.       Easy to manage – The availability of obtaining multiple sportsbook accounts makes sports betting easy to manage. You can easily get the best odds simply by owning a few accounts. The growth of the ‘e-wallet’ industry makes managing funds even easier too. Deposit from your bank in to an e-wallet, and you can instantly transfer money between bookmakers to ensure you get the best odds, best value and therefore maximise profits. Doing this used to be almost impossible, but technology has helped make this become easy, even for beginners.

2.       Publicly Available Information – Finding out information about a company on the stock exchange can be very difficult. Any information in the public eye could be a smokescreen for things going on behind closed doors, making it difficult to trust publicly available information on the stock exchange. Finding the ‘edge’ is therefore very tricky. With sports betting, it becomes much easier. Team news is almost always available if you look in the right places, and there are so many statistics online that you can get a good picture about how teams are performing.

3.       Lower commissions/fees – Financial investment advisors are expensive. Getting sound advice regarding the stock exchange is priced for serious investors (with serious funds) only. They will charge either a commission, or a flat rate. Commissions can be very high and can make turning a good profit more difficult (as you first need to gain the costs accrued for the initial portfolio advice). These kind of fees put a lot of people off. Sports betting on the other hand is more affordable. If you have the time, it is possible to generate the analysis and advice yourself; but many don’t have the time, so instead must pay experts to do it on their behalf. This is the most time efficient and logical way to approach serious sports betting. Pay experienced experts a small fee and you have your edge over the market. This edge can help make a small investment go a long way.

4.       Cheaper Bankroll – Bankroll is arguably the biggest benefit of choosing sports betting over the stock market. Typically, a sports bettor with good money management and a solid strategy will place a maximum of around 3% of their bankroll on any given match. This would imply that every 40-50 bets would see the bankroll bet once. So a £5,000 bankroll could easily by bet to the tune of anything up to 15-20x a year (£75k-£100k). A small return on investment would therefore results in large profits – for example, an ROI of 5% would see the bankroll double annually. This kind of return on capital is what can make sports betting become a very viable option.

To conclude, sports betting is a realistic alternative to investing on the stock exchange – providing you know how it works and can keep disciplined. Use expert knowledge from those whose careers are centred around the industry. With so much information available, it is almost impossible to be absorbed by one person, so using experts and specialists is an invaluable technique to remain diverse and impartial. Add the fact that sports betting investments can’t be impacted during an economic downturn, and you can see there are many advantages to invest in sports betting strategies.

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