View Single Post
  #2  
Old 11-29-2007, 12:49 PM
warrantofice warrantofice is offline
Senior Member
 
Join Date: Jul 2007
Posts: 463
Default Re: The Ceiling Concept

The short of it is that poker is a game of investing money or gambling depending on how you play. But if we assume that we are playing under the pretense to invest our money intellegently than the same principles of investing in the stock market apply, however the stock market trades at a much larger level. The reason the top pro's are broke is because they have reached the poker ceiling, its similar to the investment ceiling which goes by some name. A name that i don't know.

If you talk to really good investment bankers, the best ones, they will tell that they can basically make the same average returns year after year say 15% as an arbitary number. It takes hard work but its sustainable...however, when their portfolio reaches around 500 million dollars then it becomes much more difficult to keep that 18% return rate. So i would propose that this is what has occured to the current breed of poker players. Because the poker economy is much small than the US stock market the ceiling is much lower.
So i would conclude that investing your money is good but only until say your reach 3 or so million to give an arbitary number. After that point it becomes much better to invest your money in a the stock market.
Reply With Quote