Bets with value 🆚 Stock Exchange [Investments]
Have you ever wondered where it is better to invest your money – in a strategy for betting on sports bets with value or investing in the stock market? Today I will try to help you answer this question.
There are many factors to consider such as the capital you have, the time you are willing to spend on training or implementation, and the tax aspect.
I will try to objectively evaluate the two investments by comparing the advantages and disadvantages of each.
What are Value bets
The principle of betting on value is to find a market where you have an advantage over the bookmaker. The question is to determine the true probability of an outcome. For example, if a victory for Manchester City is at odds of 2.00 against Liverpool, this means that Man City has a 50% chance of winning.
However, if you believe that the actual probability is higher, for example, 65%, you have information supporting this belief, which means that you have found a bet with value. Such values are most often found in the lower divisions because, for the bigger ones, bookmakers have the full set of information and will rarely make a mistake. We from Betinum work with professional tipsters in certain championships, where we think there are the most mistakes in the odds and so we indicate an advantage over the bookmaker and win. You can see the information supporting our bets on the Paid predictions page.
What is investing in the Stock Exchange
Investing in the stock market can be interpreted in different ways, but I explain it that way. You buy shares at a price lower than the intrinsic value. That is, you need to do detailed research on the company’s financial fundamentals to reveal the real value of the shares. For example, if a company sells shares worth 25 euros, but according to your analysis they are valued at 40 euros, you can take advantage because you expect them to rise in value over time.
Advantages of Value Bets
- Higher return on investment
The return on investment from our bets (yield) is about 25%. That is, for every bet of 100€, we win 25€, and our profit for the last year is a total of 614%. This month, for example, we have about 35% Profit at the moment, which with an investment in the stock market can be achieved in more than 3 years. We exclude our example because we believe that we have gathered the best professional bettors on our team.
For the average professional tipster, the return on investment is 5%, ie. yield, which means that on average per bet at 100€ he wins 5€. If we assume that each week he has an average of 5% yield, at 52 weeks a year, this equates to an annual profit of 1164%. [1.05 x 52 – 1 = 1164%]
Let’s look at the Stock Exchange. The average historical return, ie. profit of the S&P 500 index, which is a benchmark in the stock market, is 8% per year. That is, if you invest 100€ at the beginning of the year, you will eventually have 108€.
Which do you think is better 1164% or 8% Profit per year?
Don’t rush to draw conclusions, because at the expense of high returns there are many shortcomings that we have noted.
- The quantitatively measurable advantage over the market
By comparing the odds on which we have bet a certain market with those just before the start of the match, we can determine whether we have an advantage or not. For example, if we play Man City at 2.00 odds and just before the start of the match, the odds are 1.70, so we beat the market by 30 hundredths. The odds at the beginning of the match are the most accurate because then the bookmaker has obtained the full information about the lineups and all other details.
- Shorter investment cycles
In less time with bets, you can make significantly faster growth. A game with the half time is 105 minutes while investing in stocks can take years and you have to be very patient.
For example, when I started playing bets with value, November 2019 with BGN 200, I had 154% profit, I was quite lucky then because I risked higher percentages from the bank and at the end of the month I was respectively with BGN 500, i.e. is. for one month with BGN 200, I made BGN 300 net profit.
While investing in the stock market can take months or years to see a return.
- Profits from sports bets are not taxable
When we withdraw our money from the bookmaker, we do not owe any taxes, compared to investing in the stock market.
- Less training time
In sports betting, you can play with almost no knowledge of either sports or specific strategies if you follow the bets of a professional. It takes about 1 day to get acquainted with the most important things, while investing in stocks requires a lot, a lot of knowledge, given that there you play against such large hedge funds that have invested billions to obtain information, etc.
You can also very quickly find any information about the team as such as the squad, tactics, finances, etc., because the teams are very transparent, while with companies it is much more difficult.
- Low entrance barrier
While you can start with bets with a bank of 200€ and raise it on the stock exchange month after month with such a starting bank, it will be difficult to make a good profit and this will take a very long time. Here, a starting bank of at least 1.000€ is recommended in order to have good results.
- The market is decentralized
The betting market is decentralized, which means that you get different odds at different bookmakers and you can always take advantage of the higher ones. This also means that the market is inefficient and mistakes are made. In the stock market, you get the same share price no matter where you buy it.
- It’s more fun
I think it’s a lot more fun to invest in sports betting, especially if you’re a fan of the sport you invest in compared to stocks.
Advantages of the Stock Exchange
- Sports betting is not a passive income
In sports betting you have to trade constantly, look for valuable bets or if you trust professionals you have to be on the betting line again for most of the day, while in stock trading this is not the case. There you buy a stock and wait a long time for the value to increase and make a profit.
- You can be limited on sports bets
Most bookmakers limit winning players, which makes it quite difficult to invest in value bets. Some markets are not available in Asian bookies and the odds are more accurate, but only there can a professional tipster remain active forever.
- Sports betting is addictive
There are quite a few cases in which even professionals are addicted and look for bets non-stop because they can’t stand it, so this is a big betting problem and should be taken into account.
- Opportunity to trade large amounts
In the stock exchange, you can trade with an indefinite budget, such as 100.000€, while this will be very difficult for value bets. Especially because there are low limits on the number of bets on smaller markets.
- Are sports bets riskier?
If we talk globally, we would make this conclusion, but when betting on value, I don’t think that’s the way it is. If you always have an advantage in the odds, even if you find yourself in a bad period, you can quickly return to the winning path, because you find errors in the odds and a real probability for markets. Yes, volatility is higher because you play multiple bets all the time, but not in the long run.
Conclusion
The truth is that a professional who benefits from one can do the other. If I had to summarize my opinion, I would conclude that investing in value bets is much more profitable for people with smaller banks up to 5.000€ – 10.000€, because they can quickly raise them, while people with larger amounts of the amount of 50.000€ – 100,000€ will have problems with the deposit and the game and maybe it is better to invest in the stock market.
And why not in both? If, for example, you have 5.000€ to invest, you can invest 3.000€ in selected shares that you expect to increase in value, such as Tesla, for example, and invest the remaining 2.000€ in value bets. Thus, these 3.000€ will be left to rise over time, while with the other 2.000€ you will be able to actively play with a slightly higher risk, but also potentially a much higher return.
Finally, I would like to share with you that I am not an investment adviser and this should not be seen as investment advice, but simply my opinion on these two investments. Be careful with your money and never risk more than you can afford to lose.
Anyone who chooses to invest in value bets can look at our results on the site and calculate what return they will have with the available capital they have. Good luck to all!
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