It has been a long time

It has been ages since I last posted anything in this blog.....

Well, a conversation I had with my colleague 2 weeks ago prompted this entry.

This colleague of mine was a serious stock investor (which personally i think should be called as a stock speculator instead). He was sharing with me the terms such as ROI, PE, NAV, etc.... He was delighted to share with me that he made a 5% gain in 3 months time, using an initial capital of $10,000. This works out to be $500?

I was impressed initially.

Seriously, I was!

Then suddenly a thought came to my mind.

What if he uses this $10,000 in Horse Racing?

Could he achieved a higher ROI?

Could he achieved more than 5% return with lower risk punts?


Let's switch back to the Horse Racer mentality.

3 months.

Wednesdays, Fridays, Saturdays and Sundays.

16 race meets in a month.

48 race meets in 3 months.

Take an average of 8 races per meet, that works out to be 384 races.

What if he will to place $5 PLACE bet on the 8/5 favourite for each race.

The total outlay would be $1,920 on the bet amount.

Let assume the probability of the race goes his way at 75%.

The returns will be at $8 * 384 * 75% = $2,150.

The ROI will be 11.97%!

Did i rediscovered something here?