What does horse racing have to do with investing? Everything. The key is to think of “horses” as “stocks.”
Most gambling, like blackjack, roulette, or craps, involves betting against the House. Not so at the horse track. Instead, you bet against other bettors and your, and everyone else’s, bets on different horses (stocks) change the odds.
Not surprising, how people approach betting on horses is fairly similar to how people bet on stocks.
Steven Crist says as much in a chapter he wrote for Bet with the Best, as he explains how to bet on horses. But as I said at the top, swap out “horse” with “stock” and you’ll see the similarities with investing: Continue Reading…