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Matched Betting as an Alternative Investment
Nick Knowlton
Posted: 08 December 2010 15:05:23(UTC)
#1

Joined: 08/12/2010(UTC)
Posts: 1

"MB as an AI" has a certain ring to it.

After reading an article in the Daily Telegraph a few days ago, I became curious as to whether it was true that matched betting could make money out of thin air.

http://www.telegraph.co....-bet-you-cant-lose.html

I couldn't help but consider how this would translate in investment terms. I signed up with the website they reference on Monday evening and completed an offer today. The offer was a free £25 bet, requiring me to qualify by placing a £25 bet initially.

To avoid sounding too mundane, the process required me to place an initial capital of £55.10 in total, from which I made a profit of £15.84. In investment terms, this is a 29% return on investment.

However, like with a structured fund, you can 're-invest' the money. In this case, this would refer to using the profits made as a 'float' to do other offers. As an example, my float now is £70.94, which I have then gone on and used to complete two other offer which required a £48.53 in capital and another at £19.64.

Now consider this in investment terminology. If as the article suggests, you can make £440 based on the current offers they have on their website and based on the capital that I have put in so far, this would suggest that I'm going to expect a 699% return on investment.

Pretty impressive, considering that this can be achieved in as little as two weeks. Furthermore, if their founder were to add more as hinted in the article, the return on investment ratio could be staggering.

Whilst this is not necessarily life changing and would certainly not be the death knell for existing investment vehicles, it is certainly an impressive vehicle which can supplement my income.
Pesto
Posted: 15 December 2010 17:12:10(UTC)
#2

Joined: 15/12/2010(UTC)
Posts: 1

An interesting analogy.

Having invested into BRICs for the past decade years, as well as Africa, I can honestly say that I haven't been disappointed with their returns, however never have they reached the ROI levels that matched betting can have. I practically consider these risk-free. However this fails to compare with that of FTSE-backed funds, where, although delivering a marginal return, also presents itself as a hugely risky investment given the current instability in economic policies.

Perhaps a fund should be set up for matched betting, in which syndicates are set up to do matched betting, delivering a risk-free investment for its investors with a strong ROI.
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