What Betting on Horses and Picking Stocks Ha…

Listen now (3 min) | The Pari-Mutuel System From Poor Charlie’s Almanack, page 195: The model I like — to sort of simplify the notion of what goes on in a market for common stocks — is the pari-mutuel system at the race track. If you stop and think about it, a pari-mutuel system is a market. Everybody goes there and bets and the odds change based on what’s bet. That’s what happens in the stock market.

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