Las Vegas and bogleheads

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jbh42
Posts: 45
Joined: Wed Mar 28, 2012 4:57 pm

Las Vegas and bogleheads

Post by jbh42 » Wed May 02, 2012 1:28 pm

Just a thought, is the boglehead philosophy akin to what makes Las Vegas casinos successful? That is to say..stay the course
and don't try to beat the odds by making foolish bets.

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rdmayo21
Posts: 71
Joined: Fri Sep 30, 2011 11:13 am

Re: Las Vegas and bogleheads

Post by rdmayo21 » Wed May 02, 2012 2:05 pm

Your question is confusing to me. How does stay the course apply to gambling? Play until you're broke?

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dratkinson
Posts: 4292
Joined: Thu Jul 26, 2007 6:23 pm
Location: Centennial CO

Re: Las Vegas and bogleheads

Post by dratkinson » Wed May 02, 2012 2:33 pm

They are 180 degrees out.

*Las Vegas is in the business of transferring your wealth to Las Vegas. The BH philosophy is about teaching you to control your emotions, not taking more risk than **prudent, and thereby keeping/growing your wealth for yourself.
  • *Could substitute stock brokers, hedge fund managers, late night infomercial producers,....

    **Read the BH recommended books containing studies on the academic evidence on long term investing.
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

Easy Rhino
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Location: San Diego

Re: Las Vegas and bogleheads

Post by Easy Rhino » Wed May 02, 2012 4:22 pm

Maybe similar to the philosophy that the casinos use themselves... :moneybag

hicabob
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Location: cruz

Re: Las Vegas and bogleheads

Post by hicabob » Wed May 02, 2012 4:30 pm

jbh42 wrote:Just a thought, is the boglehead philosophy akin to what makes Las Vegas casinos successful? That is to say..stay the course
and don't try to beat the odds by making foolish bets.
Pretty much - make "bets" with the probability of a positive outcome (house odds) - diversify (many tables/machines/customers) - rebalance (change rules if customers figure out way to win i.e. card counting in BJ)

FireProof
Posts: 555
Joined: Thu May 05, 2011 12:15 pm

Re: Las Vegas and bogleheads

Post by FireProof » Wed May 02, 2012 7:02 pm

hicabob wrote:
jbh42 wrote:Just a thought, is the boglehead philosophy akin to what makes Las Vegas casinos successful? That is to say..stay the course
and don't try to beat the odds by making foolish bets.
Pretty much - make "bets" with the probability of a positive outcome (house odds) - diversify (many tables/machines/customers) - rebalance (change rules if customers figure out way to win i.e. card counting in BJ)
I'm with you except for rebalance. They move away from games where they do poorly rather than rebalance out of things that have done well recently.

If only we could get such uncorrelated investments!

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