bigstock-Hand-Drawing-Roi-return-On-In-57443648-1000x553Headline result is $774 profit.  It was a real roller coaster month. I was in profit over $1,000 after the first week. By the end of the second week I was losing $10 for the month. I didn’t hit my target of $500 per week, but I realised that, this is probably an arbitrary target and that profits are related to the amount invested.

So if the empirical measure of $500 per week is the wrong target, what is the correct target? It should be Return On Investment (ROI) (or Profit On Turnover).  I looked for a 10-12% ROI  from Real Estate, when I was in Defence Housing, but that was over the long term, and basically arose from the appreciation in value of the property.

Small businesses normally return a 3-5% ROI. A High End retail business may make a 10% ROI, but that is generally very rare.  So, as a small business, I should be looking at a couple of things:

  1. Most small businesses fail within the first 5 years. My first target is to be still in business and profitable by the end of 2022.
  2. My target should be a ROI of 103-105% ROI, or a 3-5% POT.
  3. My Units will remain at 1% of my bank for that particular tipster, and will be reviewed at the end of each month.  The unit will not decrease, but it will increase if that tipsters bank increases.  If that tipster’s bank is lost, then a decision will be made whether to continue with that tipster, with a new bank, or discard them.

I invested $25,754 in May 2017 and returned 2.87% Profit on Turnover.  Around the 3% minimum figure that I am targeting. For the Year To Date I have invested $193,447 and returned a POT of 5.25%, which is around the benchmark that I am targeting. One of the questions often raised, is if the ROI is so low, why not simply invest in other markets, other than gambling.  The advantage in gambling is on the amount turned over.  If I had a bank of $5,000 then my ROI would be calculated annually on that amount.  In gambling that $5,000 is being continually turned over (bet) and hence I am achieving a 5% ROI on $193,447, rather than the static $5,000 bank.

Individual Investment Portfolio’s Performances

Pro Punt – David Evans

  • Invests in racing. For May 2017 had 29 Bets for 15 wins (51.7% S/R).  POT was 36% on $502 invested. YTD is returning a negative 3% on $5,516 invested.
  • Starting Bank of $1,000. Lost $167 YTD. Units are $10 (1% of starting bank)

Red Belly Sports – Ed Kennett

  • Invests in racing. Currently has two forms of Investment, East Coast Racing and Perth Racing.  Each have their own bank and are measured independently.
    • East Coast Meets returned 9.4% on $2,318 Invested during the month. While YTD the East Coast Meetings have returned a negative 0.7% on investments totaling $14,911.
    • Starting Bank of $2500. Lost $379 YTD. Units are $25 (1% of starting bank)
    • Perth Races returned 113% on $445 invested. YTD the return is 54% on an investment of $865.
    • Starting Bank of $5,000. Won $426 YTD. Units are $55 (1% of highest point of bank)

Maiden Mail – Matt Hutchinson

  • Invests in racing. In May 2017 had 30 bets for 12 winners (40% S/R). Returned negative 2.6% on a $630 investment. YTD 13.6% Return on an investment of $1,629.
  • Starting Bank of $1,000. Won $221 YTD. Units are $12 (1% of highest point of bank)

My Bets 

  • Invests in propositions where I feel that I have an edge.  Mistakes also get categorised under this heading.  In May 2017 had 50 bets for 15 winners (30% S/R). Returned negative 2.8% on a $2,186 investment. YTD 3.3% Return on an investment of $56,645.
  • Investment amounts limited by Bookmakers.

Sports Punter – part of Daily Profit.

  • Invests in sports betting, this is the straight out gambling arm of Daily Profit. In May 2017 had 61 bets for 22 winners (36% S/R). Returned negative 13.6% on a $4,667 investment. YTD 15% Return on an investment of $15,063. Units are $50 (1% of highest point of bank)
  • Units to be bet are advised by Sports Punter, based on the probability of the event.

Value Bets – part of Daily Profit.

  • Invests in anything where they can gain an edge. Generally will bet each side of any event. In May 2017 had 244 bets for 133 winners (50.4% S/R). Returned 3.6% on a $15.006 investment. YTD 5.5% Return on an investment of $88,470.
  • Investment amounts limited by Bookmakers.

Graphs below show the Roller Coaster ride for May 2017 and the YTD performance of all the portfolios.

May 2017 YTD - May 2017