Some people ask us why we don't invest in racing sports such as NASCAR and Formula 1. The simple answer is that it's just too risky. Unlike basketball, hockey and even baseball, racing is not a "team" sport, therefore the outcome of a race relies too heavily on a single person, i.e. the driver. Furthermore, no matter how good the driver is there are still too many uncontrollable variables, such as blown tires, being hit by another driver, and thousands of possible mechanical malfunctions.
In basketball, for example, if one player has a bad game the other players can make up for it, therefore helping to limit negative outcomes to a minimum. The same thing goes for all other "team" sports such as football and hockey. This is the primary reason why the Market Growth team refuses to take risks on individual sports such as racing, golf and tennis. Investing your money in a group of 20 guys instead of a single individual drastically reduces the likelihood of losing.
Therefore, next time you are thinking of throwing some cash down on your favourite driver, golfer or tennis star, you might want to think twice about the real odds of winning.
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