Why do we speculate?
We will get a host of answers.
Lets try and list out some of the reasons
a) Get a kick out of it.
b) Higher returns.
c) Need for additional money.
d) Hooked to it and cannot get out of it.
e) Dont get rewarded for the quality/quantity of output at the workplace
f) Investment made has to be recovered with some profits
and so on and so forth......
There is a catch in all forms of speculation.
Lets Discuss some
a) Cards.....However intelligent you may be you have to outwit/out think the other players and have to be dealt cards which are winnable.
b) Shares.... After studying so much about the organisation the investment made can only give returns if the company does well inspite of the Competition involved,has market acceptability of its product, has Government Policy favourable & the costs for the company is within its budget to show decent returns after taxation.
C) Debentures.... The investment made is spread among many predetermined companies to minimise risk and so the returns are also minimised.
D) Horse Racing.... After making detailed analysis of horse past performance , current track, odds variation,trainer capabilities,Jockey Capabilities,Track & location suitability the investment made is not likely to give returns due to various vicarious factors.
E)Real Estate- With limited availability of land which is not going to increase the invetment madeis secure BUT if Goverment Policy is not favourable or Polictical Climate( eg A P) is unstable or if the the seller actually does not hold the title rights the investment is down the drain.
What do we do?
The fundamental is to endure that not a penny is lost.
Is it possible?
Most of us have lost in Horse Racing.we can ascribe our resons.
If every race is run as per merit and every handicapper worth his salt is able to correctly understand the merits/demerits of each runner then everyone will be able to point out the winner and everybody will be playing only that horse resulting in negligible returns.This will result in every bookie going out of business.
The net gainer will Only be the Government on account of taxes, & The club on account of the commission.
The owner cannot recover his money, the trainer will not get paid by the owner for his services and the jockey will have only the basic riding fees.
In effect therefore racing will always be fixed.
By fixing we dont mean that the results are fixed.We mean that whether a runner will be tried or not will be fixed and if tried at what odds will be tried.
Are we expecting that racing will be fair?
Logically it cannot?
This brings us to a point as to whether we should invest in speculative investment pertaining to horse racing.
We still feel yes but have to protect our investment.
How to do it?
There can be many theories.Many of you may have ideas.Lets Pool them and see what we get.
We would appreciate coments on both agreement and disagreement to our views along with some practical, useful suggestions.
We would continue with our views on this subject in our subsequent posts.
We would also be over a period of time discussing other forms of speculative investments.
Lets beat the system before it beats us, Together.
We will get a host of answers.
Lets try and list out some of the reasons
a) Get a kick out of it.
b) Higher returns.
c) Need for additional money.
d) Hooked to it and cannot get out of it.
e) Dont get rewarded for the quality/quantity of output at the workplace
f) Investment made has to be recovered with some profits
and so on and so forth......
There is a catch in all forms of speculation.
Lets Discuss some
a) Cards.....However intelligent you may be you have to outwit/out think the other players and have to be dealt cards which are winnable.
b) Shares.... After studying so much about the organisation the investment made can only give returns if the company does well inspite of the Competition involved,has market acceptability of its product, has Government Policy favourable & the costs for the company is within its budget to show decent returns after taxation.
C) Debentures.... The investment made is spread among many predetermined companies to minimise risk and so the returns are also minimised.
D) Horse Racing.... After making detailed analysis of horse past performance , current track, odds variation,trainer capabilities,Jockey Capabilities,Track & location suitability the investment made is not likely to give returns due to various vicarious factors.
E)Real Estate- With limited availability of land which is not going to increase the invetment madeis secure BUT if Goverment Policy is not favourable or Polictical Climate( eg A P) is unstable or if the the seller actually does not hold the title rights the investment is down the drain.
What do we do?
The fundamental is to endure that not a penny is lost.
Is it possible?
Most of us have lost in Horse Racing.we can ascribe our resons.
If every race is run as per merit and every handicapper worth his salt is able to correctly understand the merits/demerits of each runner then everyone will be able to point out the winner and everybody will be playing only that horse resulting in negligible returns.This will result in every bookie going out of business.
The net gainer will Only be the Government on account of taxes, & The club on account of the commission.
The owner cannot recover his money, the trainer will not get paid by the owner for his services and the jockey will have only the basic riding fees.
In effect therefore racing will always be fixed.
By fixing we dont mean that the results are fixed.We mean that whether a runner will be tried or not will be fixed and if tried at what odds will be tried.
Are we expecting that racing will be fair?
Logically it cannot?
This brings us to a point as to whether we should invest in speculative investment pertaining to horse racing.
We still feel yes but have to protect our investment.
How to do it?
There can be many theories.Many of you may have ideas.Lets Pool them and see what we get.
We would appreciate coments on both agreement and disagreement to our views along with some practical, useful suggestions.
We would continue with our views on this subject in our subsequent posts.
We would also be over a period of time discussing other forms of speculative investments.
Lets beat the system before it beats us, Together.
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