Rate of Return Trumps Win/Loss Record in Sports Investing

Dec 9, 2010

One of the most overlooked components to sports investing is one’s rate of return on investment.  In many respects, a sports investors win/loss record bears little relation to his annual rate of return, especially when taking into account baseball investments.  Due to the fact that Oskeim Sports is predicated upon honesty, integrity and full transparency, please find below its quarterly and annual rates of return since 2008.

2010  

First Quarter (Jan., Feb., Mar.): +14.47 net stars (+4.82 units); +48.2% Rate of Return

Second Quarter (Apr., May, Jun.): +6.2 net stars (+2.10 units); +21% Rate of Return

Third Quarter (Jul., Aug., Sept.): +33.74 net stars (+11.25 units); +112.5% Rate of Return

Fourth Quarter (Oct., Nov., Dec.): +9.523 net stars (+3.17 units) through October, 2010.

I arrived at the quarterly figures above by dividing our net winnings by 40 (bankroll) and then multiplying that figure by 4 to annualize the return.

2009

First Quarter (Jan., Feb., Mar.): +6.73 net stars (+2.24 units); +22.4% Rate of Return

Second Quarter (Apr., May, Jun.): +27.63 net stars (+9.21 units); +92.1% Rate of Return 

Third Quarter (Jul., Aug., Sept.): -0.78 net stars (-0.26 units); -2.6% Rate of Return

Fourth Quarter (Oct., Nov., Dec.): +39.58 net stars (+13.2 units); +132% Rate of Return

I arrived at the quarterly figures above by dividing our net winnings by 40 (bankroll) and then multiplying that figure by 4 to annualize the return.

Overall: +73.16 net stars (24.4 net units)

Rate of Return for 2009: +61.1%

2008

Month-by-Month Results

December: +4.83 net stars

November: +0.34 net stars

October: +7.25 net stars

September: +7.20 net stars

August: +7.89 net stars

July: +11.4 net stars

June: -14.52 net stars

May: +12.42 net stars

April: +25.84 net stars

March: +28.65 net stars

February: +9.44 net stars

January: -12 net stars

Overall: +88.74 net stars (+29.6 net units)

Rate of Return for 2008: +76.3%

When looking for a reliable sports investment firm, be sure to inquire about their annual rates of return over the last several years.  Unfortunately, the sports handicapping industry is completely unregulated and, as a result, scam-artists pervade the internet advertising 70% winners and guaranteed locks.  If you want to purchase a lock, I strongly suggest Home Depot.  If you are interested in guaranteed 70% winners, I recommend reading a book on statistics, probability and the inherent nature of variance in sports betting.  However, if you are looking to diversify your investment portfolio and/or are seeking a second line of income, my sports investment firm can provide a solid rate of return during the course of your subscription.