What the hell is ROI?

[Penguinfan]

It stands for Return On Investment and it can be misleading because different people determine it different ways. Us horse players figure what you get back for every dollar you wager, for example:

Played 10 races at 20 each and made 20 dollars profit:

Invested 200 dollars and got back 220 thus my ROI would be 110%

IF I played 10 races at 20 each and lost 20 dollars (or got back 180) my ROI would be 90%

Others would saythe ROI in the first example was +10% and the second example it would be -10%

You can figure it anyway you want but basically it is what your return on the original investment is. The reason people use this is to decide if their money is better off just sitting in the bank as opposed to being wagered with.

I prefer the profit/loss calculation better especially in poker because in poker and horses you are actually betting the same money over and over, if you left it in the bank you could only use it once, so the point is moot.