Chris Hanna - Gambling versus Investing: The Differences (and Similarities)
This episode of BB&B is different - we talk gambling. Yes, this is an investing show, but a lot of people don’t understand the difference between investing and gambling, and who better to discuss that with than a former professional blackjack player and card counter turned financial coach?
Chris Hanna joined me at the bar to tackle the similarities between gambling and investing, but more importantly, the differences. Chris also shared his story of bypassing wall street to become a professional blackjack player, learning to count cards, and some basic strategies. While I found it fascinating…you won’t catch me at the casino anytime soon.
[01:31] – Introducing Chris Hanna
[3:10] – Bourbon of the Episode – Basil Hayden’s
[6:10] – From college to counting cards – “it was really the difference between starting life as an employee or starting as an entrepreneur. I knew I would struggle more as an entrepreneur; that was the path I knew much less about. But the sooner I start, the faster I’m going to succeed. It was scary. It was exciting.”
[12:00] – On getting caught counting cards – “typically they start to fill the pit, the area that the tables surround with more and more pit bosses to try to scare you off. I also have a theory that it’s also so the bosses can see you and see your face…and then you get a tap on your shoulder. Two or three people are standing behind you, and they say, “sir, your blackjack skills are too good for us; you can play any other game in the casino, but you can’t play this one.”
[13:56] – Similarities between investing and gambling – “there’s a bankroll management aspect, or a portfolio management aspect where you’re deciding how much of your bankroll you’re willing to put on any one investment, or trade. Then it’s your long-term thinking…if you repeat this action an infinite number of times, would you over the long run have a high expectation of succeeding.”
[22:55] – Any vehicle can be used for gambling – “when people are gambling, what they’re doing is placing an arbitrary amount of money and making an arbitrary decision without an understanding of what the expectation should be.”
[40:00] Invest in Yourself– “especially for younger folks who aren’t where they want to be financially, it can be very tempting to think that a potential 20x return on your investment in a matter of 6 months is something you should put your money on. You rationalize it because you say, “well, if it does hit, I’m going to be here.” To those folks, I’d say if you’re not happy where you are financially today, take that money that you would be investing in risky assets and invest it in yourself.”
[53:25] – What does wealth mean? – “wealth is your ability to control your time.”
Links:
www.bullsbearsandbourbon.com
www.vermillionprivatewealth.com
**The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional before making a final decision. Thanks for listening.
