If you’ve ever been to Las Vegas, you know just how tricky gambling can be. Sometimes you win. Sometimes you lose. If you’re winning, the guy next to you admires your skill. If you’re losing, he’ll pity your bad luck. And whether you’re playing craps or black jack or a simple slot machine, every game you play gives you just enough wins to keep you smiling and playing, and just enough losses to keep the casino thriving. In the end it’s the casinos—not the gamblers—that are the biggest winners. There’s a reason they give you all those free drinks while they’re raking in your chips!
Seeing the loser’s game for what it is might be easy in Vegas, but for investors, the writing on the wall isn’t always so clear.