Leave the Gambling to the Gamblers

by Jordan Chussler
By Jordan Chussler

Charlie Munger once mused, “We have a stock market that some people use like a gambling parlor.”

The billionaire and longtime vice chairman of Berkshire Hathaway (BRKA) was speaking to how some people — unequipped with knowledge or experience — lack strategy, insight and discipline, which produces results akin to a zero-sum table game at a casino.

Munger was not, however, insinuating that the stock market is simply a venue for placing your chips on black and leaving fate to the roulette wheel.

And despite the market’s ongoing volatility and overwhelmingly bearish sentiment among investors, there is always a bull market somewhere.

To demonstrate that point, I took a look at one of the more popular ETFs leveraged to — you guessed it — gambling.

The Roundhill Sports Betting & iGaming ETF (BETZ) has holdings in some of the most famous gambling companies in existence.

The ETF’s recent performance attests to how the zero-sum wagers placed in Vegas, at online sports-betting sites and at Churchill Downs turn into profits for those who know where to look in the market.

Six-month price chart of the BETZ.
Click here to see full-sized image.


At the time of writing, the ETF has risen over 24% in the past six months and is up more than 12% year to date — a period that has seen the NCAA’s College Football Playoff National Championship and March Madness, the NFL’s Super Bowl, the World Cup, the World Baseball Classic and, as of this week, Major League Baseball’s Opening Day.

Sports betting may be big business, but leave the gambling to the gamblers. Instead, focus on the decades of market knowledge and experience of our team experts.

As Storefronts Disappear, This Company Is a ‘Buy’

COVID-19 and e-commerce changed retail, and experiments like Amazon Go aren’t panning out. Pulitzer Prize winner Jon Markman explains how the shift to e-commerce is permanent, and how one logistics company will be the principal beneficiary.

VIDEO: Market Minute with Kenny Polcari

In his weekly look-ahead series, Financial News Anchor Kenny Polcari dives into this week’s macroeconomic data, including the Personal Consumption Expenditures Price Index’s Personal Income and Outlays report and University of Michigan’s Consumer Sentiment Index.

In the Mood to Make Money from Wearable Technologies

Wearable technology has come a long way from 1970s mood rings and calculator watches. Senior Investment Writer Karen Riccio reports on how the industry — valued at $61.3 billion today — is expected to grow 14.6% by the end of the decade, and one way investors can play it.

3 … 2 … 1 … Gold Is Set to Skyrocket!

According to Senior Analyst Sean Brodrick, there are three very bullish things happening for gold right now that will power the metal to his target of $2,931 and beyond, and one gold-leveraged ETF stands to profit.

Your Portfolio Insurance Plan

With ongoing market volatility and increasingly bearish investor sentiment, Assistant Managing Editor Mahdis Marzooghian details how alternative investments — like commodities, collectibles and equity crowdfunding — can help protect your portfolio while the traditional equity markets churn.

Here's Your Bank's Report Card

Each day, there seems to be new twists to the banking failure saga. Director of Research & Ratings Gavin Magor discusses how these incidences are never isolated, and how you can ensure your bank is up to snuff.

Why Your Kids Are the Best Consumer Discretionary Analysts

Senior Editor Tony Sagami reports on how children could be a gateway to finding hidden gems in the consumer discretionary sector, and how some of the best-performing stocks over the past two decades sold products his children and their friends relished.

Until next time,

Jordan Chussler
Managing Editor
Weiss Ratings Daily

About the Managing Editor

Jordan Chussler is the Managing Editor for a team of research analysts and senior editors. He oversees the development and production of trading and investment products and services reporting on traditional equities, including stocks, ETFs, income vehicles, options and private equity. He is a 15-year veteran of the digital publishing industry and also serves as a contributing writer for Weiss Ratings Daily.

Top Tech Stocks
See All »
Top Consumer Staple Stocks
See All »
WMT NYSE $59.85
Top Financial Stocks
See All »
BRKA NYSE $608,091.00
JPM NYSE $197.45
Top Energy Stocks
See All »
CVX NYSE $158.96
COP NYSE $133.52
Top Health Care Stocks
See All »
SYK NYSE $351.02
Top Real Estate Stocks
See All »
Weiss Ratings