Betting Versus Investing

Relative Performance
Stock Betting

The definition of betting is “the act of gambling money on the outcome of an event”.

The definition of investing is “the purchase of an asset in the expectation of receiving income and/or an increase in the value of the asset”.

Investing and betting both involve risking capital in the hope of making a profit. In betting on securities, the magnitude of gain or loss is likely to be greater, and in a shorter period, than in traditional investing.

The decision reached regarding the future value of an asset is a bet. The bet can be the result of confidential information, research of publicly available data or just be based on the bettor’s expectation of price change.

In the case of securities, the bet can be in the form of purchasing or selling short a stock or the buying or selling of put and call stock options. In both cases the gain can be substantial if the bettor is correct in their prediction of price change. In the case stock option, the possible loss is limited to the amount of premium paid, whereas in securities there is no such limitation. In all cases of betting on securities, the action of the market will likely have a significant impact on the price of the securities.

The bet in the Relative Performance Stock Betting opportunity we believe to be of value to investors is which of two stocks chosen by the bettors will do better in price performance by the end of an agreed period. The betting unit is for a standard amount and period. Going down less is as much a basis for winning the bet as going up the most. It is a bet on the relative performance in 30, 90 or 180-days and for $200.

Will Amazon shares do better than 150% of the SP500 Index in the next 90 days? Will the shares of Apple do better than Amazon in the next 180 days? Will Alphabet outperform Meta Platforms in the next 30 days?

The organization arranging for counterparties will be functioning as a broker and will not be a bettor. The organization will pe paid 10% of the winning bettor’s winnings at the end of the betting period. No securities will ever be bought or sold. The loser will lose 100% of the amount bet and the winner will have a net win of 90% of the amount be, resulting in a very high Internal Rate of Return, depending on the period of the bet.

That’s it, the bet is which of two stocks will do better in the betting period?

Stock market indices or averages will be able to be used and dividend declarations will be included in the calculation of winning.

We have developed a statistical service for investors which it is believed will draw attention of many investors to the website and which will assist the organization acting as a broker to identify and arrange for the necessary counterparties for those initiating bets.

We are seeking the right organization to manage and market the RPSB service and believe that it has the potential of becoming very large as it provides an opportunity for winners to generate high profit return levels.

 

Arthur Lipper, Chairman                 arthurlipper@gmail.com
British Far East Holdings Ltd.        858 793 7100 Pacific