My choice for a movie last night was a
re-watch of the neo-noir The Big Town
starring Matt Dillon and Diane Lane at her most stunning. I recommend it. The
film was made in 1987 but is set in the mid-1950s. Matt plays a young
professional craps shooter in Chicago. The
Big Town can be enjoyed without expertise in the game which is fortunate
because I understand the rules of craps only in the broadest outline. In its
casino form the betting in craps is quite complicated. Street craps is usually
considerably simplified, but the fast pace still can make it hard to follow for
a newbie. For all that, it has a reputation as a workingman’s game, though at
the upper levels gamblers play for very large stakes. Craps was invented in New
Orleans in the early 19th century, apparently deriving from the
European dice game Hazard. It reached a peak in popularity in World War 2, but
still has plenty of aficionados today. It has never been my game, but as a kid
I generally liked board games with dice. They introduced a random element that
nonetheless was literally in one’s own hands, thereby mirroring life itself.
Dice are very old, and probably derive from
the casting of bones for divination: 6-sided knucklebones in particular, which
continued to be used into Classical times. Ancient cube dice were commonly made
from bone (or ivory), which gives this idea further credence. The pips (the
dots) allowed numerology to enhance the divinations. Once dice were invented,
of course, secular gambling with them was a natural. The oldest dice ever found
were excavated in southeast Iran and date to at least 2500 BCE – perhaps
centuries older. Not far behind are bone dice found at Skara Brae in Scotland,
which date to at least 2400 BCE. They turn up in Egyptian tombs from 2000 BCE
and also are found both in ancient China and India. Given the geographic spread
of these finds, I think we can surmise that the actual origins long predate any
of them. Dice of alternate shapes (e.g. 4-sided pyramids and 20-sided
polyhedrons) also are ancient, but 6-sided cubes by far were, and are, the most
common. The arrangement of pips were largely catch-as-catch-can until Roman
times. The ancient Roman die was the same as a modern one, with opposite sides
adding up to 7. The Romans enjoyed dice enough to use them as metaphors for
taking a chance, just as we do today. Hence Caesar’s “Alea iacta est” (“the die
is cast”) when he crossed the Rubicon on January 10, 49 BCE for a do-or-die showdown
with the Senate. Dice didn’t disappear in the Middle Ages in Europe but became less
common and non-standard. They made a comeback in the Renaissance. The Roman pip
arrangement again became standard and has been with us ever since. Modern dice come in three
basic types: loaded, commercial, and casino. It is best to avoid loaded dice if
one values one’s own health and safety. Commercial dice are the ones found in
board games and toy stores. They are inexpensive and produce results that are
random enough for informal purposes, but they almost certainly have unintended
small biases in them. Casino dice are carefully crafted to be as perfectly
balanced as possible; even the pips are filled with a polymer of the same
density as the die itself so that they don’t introduce a bias. These, though
somewhat costlier than commercial dice, are not actually expensive, but casinos
change them every 8 throws or so, so they go through a lot of them. Can a skilled dice player
beat the odds – at least by a little? Maybe. Casinos try to get around this
possibility in craps by requiring that thrown dice bounce off the back wall.
This introduces enough unpredictability to make nonrandom outcomes very
unlikely. Even in a straight throw, minor variations in motor control,
geometry, and air resistance should be enough to ensure random results with
balanced dice. Yet, maybe. Casinos make a good deal of money, though, off
shooters who think they can do it. My bet is always on the House. Have I ever made money with dice? Not much, but
some. Back in college in a Business class we were told the dart theory of
investing. Beating the S&P with any one investment is just a matter of
luck, we were told, and picking stocks by throwing darts at the Wall Street Journal on average produces
returns no better or worse than picking them after assiduous research, which
necessarily is always incomplete. I believe this is still taught today. Some
years back, I figured dice should work as well as darts, so after jotting down
the names of a half dozen companies that I recognized, I rolled a die and
picked that number on the list. John Deere did all right. Too bad I didn’t buy
more.
If one were to do their proper diligence when picking a stock by evaluating out the balance sheets of the company, looking into a company's debt, their demand, do they have competition, and all those things that might help, however, not fool proof. One of the rules of thumb I heard when picking a stock/company to invest in is: Do you use it? That's not fool proof either, but at least a good starting point. I would try to beat the S&P with any 'one' investment, which isn't a good way to invest anyway. I'd want several stocks in my portfolio to balance things.
There are always things one can miss in research -- such as pending changes in leadership or hidden malfeasance. Remember all the praise heaped on Enron before the massive accounting scandal? Still, it doesn't actually hurt to try to get what information one can.
If one were to do their proper diligence when picking a stock by evaluating out the balance sheets of the company, looking into a company's debt, their demand, do they have competition, and all those things that might help, however, not fool proof. One of the rules of thumb I heard when picking a stock/company to invest in is: Do you use it? That's not fool proof either, but at least a good starting point. I would try to beat the S&P with any 'one' investment, which isn't a good way to invest anyway. I'd want several stocks in my portfolio to balance things.
ReplyDeleteThere are always things one can miss in research -- such as pending changes in leadership or hidden malfeasance. Remember all the praise heaped on Enron before the massive accounting scandal? Still, it doesn't actually hurt to try to get what information one can.
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