How to Invest in Casino Stocks

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Investing in casino stocks can be done by either putting money in a brick-and-mortar casino or investing in online gambling companies that tend to do well even in slow economic times. Weigh the pros and cons of investing in casinos with information from a portfolio manager in this free video on investing.

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Have you ever rolled the dice and lost of all your hard-earned money? Well, I'm Roger Groh with Groh Asset Management, and today we're here to talk about casino stocks. And how they have grown, and, really, how you can benefit from it. If you've been in Los Vegas or Atlantic City, or, heck, even in many regional areas around the United States today, we've all experienced the inside of casinos, where you're playing cards or where you're putting nickels in a slot machine and hoping that the pictures are all the same where you can win a little bit of money. One thing in common, though, is, generally you walk out poorer than when you walked in, even if you have a good time. Now, in the casino business, though, much like most other businesses, they've become global. For instance, today in Macau, which sits right next to China, just off of Hong Kong, it's...does more business today in casino take than Las Vegas. You wouldn't think that, this is little Macau. But yet, there's an awful lot of volume going through the few casinos that they have there. Other places where you're likely to see casino growth, well, there's even one in Malaysia in the Genting highlands, where there is an awful lot of volume from the local Chinese that live in Malaysia and also come up from Singapore and down from Thailand to gamble. Now advantages and disadvantages. It's a business that tends to do well even when things get tough, and you need to be very careful in terms of buying them, as traffic means everything. Where's the biggest growth part? Well it's probably right here through your computer. In some countries it's not legal to do that, but yet, I'm sure if you Google online gambling, up will come a number of online gambling sites where you can, quote, "practice", unquote. It'll be very interesting to see what the government of China does, for instance, when it comes to online gambling. Today it's banned. How 'bout in India? As online gambling becomes more prevalent, what will happen there? Well, those are areas that we would like to see, because they represent more software companies that happen to have gambling as their product, rather than brick and mortar companies, where there has, traditionally, been an awful lot of volatility. How can you participate in it? Well, carefully, you'd have to ask your broker "Please do your homework on this before you put money in." Remember, if you want to lose money, go there. If you want to make money, invest very carefully. I'm Roger Groh. Thank you for spending a few minutes with me.

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