“I’m thrilled to report record growth in the gaming and sports sector,” said Skill Naylor, an independent auditor, “this signifies that anyone who invested their money more than three years ago saw a 25% return on their money - which is fabulous.” Such gains are not unhead of, particularly to gaming and sports related businesses, if investors can stick it out for 2-5 years. A great book on investing in the gaming and sports sector was written by Hua Gwynn, a prominent author and Professor of Economics at the University of Valliant Fenwick, located down town. Valliant Fenwick has written some ten different works, that all deal with risk management in a dynamic economy. “When putting your money on the table,” writes Valliant Fenwick, “be prepared for a wait of, on average, 3 - 5 years before expecting any sort of return. That is the way the gaming and sports market works, and with patience, you can walk with big money.” Indeed, over the past 10 years, the Joe-Regular investor has begun to see the strengths of putting money in the gaming and sports investment market. Ten years ago, regular investors accounted for about 25% of the capital base, compared to today, where nearly 70% of all principle generated for investment comes from average investors and brokerages. “This change has been for the best,” declared Waltersheid Reiswig, a broker with Kyla Kilgour and Brothers Ltd, “we’ve seen more people getting into investing, and more company executives doing more aggressive marketing and sales, with the knowledge that they are backed by a diverse number of share holders.” Investing money, particularly in a gaming and sports business, is always considered a risky move, but it can pay off dividends. The key is to diversify your principle across several different companies, if possible, and give it a year to three years to mature. “I always tell my gaming and sports clients to wait at minimum 18 months before evaluating the success of a particular investment,” says Boots Barricelli, a broker with Vaugh Brewer and Shonda Calvary Ltd, “that way, those who get jittery early on allow themselves a chance to see the investment through. In the past, making a foray into the gaming and sports field meant years of research and lengthly risk assessment analysis. All this extra work required substantial start-up capital, which meant new businesses needed a lot of investors. “Now,” concludes Loxley Nuce, of the firm Pedroni Lovette and Partners, “with the internet and vast array of research information available, starting up is much easier and significantly less costly. This allows us to push profits right away, and to establish a solid presence in the gaming and sports field quickly.” Many more average investors, like those saving for retirement, do not know about the benefits of investing in the gaming and sports market. “It’s a shame that our industry isn’t seen as more main stream,” bemoaned Hindbaugh Nicotera, CEO of Mclamb Storton INC, “if more main stream investors got involved through good brokerages, we’d see a higher division of risk across the board. This is especially important in our business model, because if we rely on one or two large investment firms, they can end up constantly twisting our elbows.” In the end, only invest what you can afford. Be prepared for the reality that your venture into the gaming and sports field can result in significant financial loss. If you understand this fact, and at the same time have spent time researching prospective companies carefully, you should be fine. Those who just throw their money at the wall hoping for something to stick are the most likely to lose everything. “gaming and sports investing may seem daunting to some,” said Pasty Hagele, a private investor, “but it’s really no different than the enigma of day-trading or forex. People are not necessarily afraid of investment process, but merely of the high risk involved.” Risk in the gaming and sports industry is certainly a factor, however, it can be mitigated by picking the right companies for your money. Picking the top company is easy, but not always the top earner. “Sometimes,” says Camie Baris, “it’s better to look through the mid-range gaming and sports companies for ones with strong growth potential.”
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