ROI Investing is the Key

Tue, Oct 3, 2017

Ask any professional money manager about winning percentages and they will likely tell you they don't worry about it. That is because the only thing that counts is that you make more money than you lose. Very simple, really.

It is possible to have a winning method that only wins 1% of the time and a losing method that wins 99% of the time. Is it true?

Take a look:

If someone bets $100 on 100 games. She loses 99 bets or $9900! But the one she wins pays 110-1 or an $11,000 payout. Folks, she is a profitable investor. She laid out $10,000 and returned $11,000. That is an ROI od 10%.

I'm not saying I would feel comfortable with this type of system because I would not. I was simply trying to make a point.

If you are betting the spread, in which you lay -110 tp win 100 (most of the time), you simply have to beat the spread about 53% of the time to show a positive ROI. This is a fairly well known fact. 

On the moneyline, you need win when you think you have found and edge. Taking a team that is +150 means the line is saying that they have a 40% chance of winning. If you feel that long term you pick will win more than 40% of the time, you have found an edge. Your job is to find these type of edges everyday. If you do you will win and you will win big!

Let's say you make one hundred $100  bets at +150 and win 45. This means 55 losses. You lose $5500 on your losses and you win $6750 on your wins. That is a 12.5% ROI.

My advice to people looking to invest in sports rather than gamble is to focus on finding an edge.


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