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.

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Until next time,

Jordan Chussler
Managing Editor
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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.

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