The Jockey or the Horse? How the Investor Mimics the Horse Racing Bettor
Those who are in the business of watching stocks and making certain key investments have probably heard of the saying, the jockey or the horse. The reason why this is such an important question is that it is a relationship represented perfectly in the world of investments. In a nutshell, would you much rather bet on the chances of a successful CEO, or are you more willing to trust the foundation of a good business? While there are indeed businesses out there that have both of these lauded qualities, just like in the world of horse racing, very rarely does this pan out.
Interestingly enough, those who are currently spending their time worrying about how to watch the Grand National 2018 could actually have a thing or two to teach those of us who are in the business of making key investments and watching the stock rise.
The trend of trusting trends
When it comes to the world of business, it’s all about doing your homework and making sure that your decision comes with as many confirmed sources as possible to increase the odds of success. While this is certainly a great tactic to use, there is a certain sense of randomness in the world of stocks. Those who don’t have too much experience are likely to go for short-term trends- and while that certainly might pay off, it could very well lead to disappointment. When you’re betting on horses, this is exactly the same case. There’s a group you consider to be potential winners because of trends, and there’s the group you would consider losers because of the same thing.
Experienced investors and bettors alike have learned to look past the short-term
The label of winner and loser in the world of horse racing is similar to the labels given to companies that have experienced a rise or fall in stocks. For some reason, it’s always expected that this particular short-term trend will continue. What history has taught the experienced investor is that rarely is this often the case. The more successful something becomes, the warier an experienced investor and bettor tend to be. Almost like a pendulum that has swung completely in one direction. They’re bound to make the opposite trip sooner rather than later.
To conclude, it’s quite fascinating how two completely different platforms can so clearly mimic the other when seen from a different perspective. This is the reason why first-time investors who don’t quite know what to do might want to take notes from sports betting. It’s a completely different world, but the random factor tends to be remarkably similar. The horse or the jockey? Every single time this question is asked, the answer never stays the same.