Casino’s are always interesting places. People going to a casino are either trying out their luck or believe they have the skills to beat the casino. There is always a lot of excitement and activity going on for all gamers in the casino. Some people win big, some people lose big, some people have modest wins, but most people end up losing a modest amount before calling it a day.
An average gamer in a casino loses money – reason is that the odds are stacked in favor of the house (Casino). Typically odds are 55:45 in favor of the house. This many not seem like a big deal, but the Casino is making steady wins on a daily basis. There will be very few days when the casino either makes or loses a lot, on an average day they make a modest profit. The key is that they have a lot of these average days and these profits add up. Gaming part of the casino is a profitable business and they usually do very well. People betting with the house, i.e., betting that the casino will do well, can be reasonably expected to do well.
Lessons investors can learn from the casino business
- Bet when the long term odds are in your favor: Buy good companies that have decent earning potential this will keep the odds in your favor
- Look to win in a steady manner: Don’t look for quick or big wins, look to win on an averages, the chances of successfully doing this are much better
- Be patient and ride out the bad days: Have a long term perspective and take the short term large wins and large losses in the stride without getting too excited or dejected
Remember the house always wins…in the long run.