What the hell is ROI?

[PShabi]

I've heard this term used and I've tried to figure it out on my own, but, no luck?

What is ROI?

Like somebody said you want to have a 75-80% ROI playing $10 SNGs.


What the hell does it mean?

[GeoffM]

I believe it refers to Return on Investment. I deposit $100 say, and take back 800, an ROI of 700%.

[eddo31]

nice return on your initial inverstment there geoff. wish i could do that once or twice myself.

[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.

[PShabi]

Thanks.

Was reading some threads on the general board and was like, "RETURN OF INVESTMENT!" Came back and you guys already schooled me.

Guess I better work on my ROI.

Played 20 $20 SNGs and only got a ROI of like 20%.

Oh well, at least I had an ROI. End of that experiment.

[GeoffM]

Eddo, I was just making an example.

However, I did deposit $100 US last June. I have since taken out $100, plus a $35 bonus courtesy of ChipFish, who I owe for getting me into online poker. I now have $400 in Neteller (Cdn$) and $410 (US$) on UB. I would like to become a regular rent payer with my online play, as right now I still live with my parents . In any event, good luck Eddo in 2005 and perhaps I'll see you on the tables.