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  1. Just a little caveat, when you say “beat the house” in Vegas… I assume this means beat the stock market’s broad returns. Or, in other words getting a 10% return when the stock market returned, say, 8%. This is slightly different than the original conceptions of beating the house in Vegas.

    Also, for me, the first step I take in trying to get people interested or enthusiastic about investing is asking what they are investing for. If they do not know the answer to that, then I would suggest reading books like “The Millionaire Next Door,” or explain how the future of investing starts today, etc. etc. If they have different investment goals than I do, (say want to turn a profit in 6 months), then I can hopefully point them in the right direction, but can’t give much more help. Beyond that, I would explain why I like to look long-term and, also, why they should too. If they are still with me after that, then it is time to lead them onto AA and some Burton Malkiel.

  2. Yes, I mean as in beat a broad based measure of the market. The best way to look at individual stock investing is beating the ‘rake’ in poker. The rake takes money out of every pot in a poker game. The stock market equivalent is fees for investment funds like Mutual Funds and ETFs. MY own personal criteria for beating the house is avoiding the fees and generating better returns than some measure of the market like the S&P 500 index.