Wow. Trump filed for bankruptcy for his casino operations. Why is this in my blog? I’ll tell you why.
I know a bit about casinos because (A) I am a gambler and (B) I own stocks in lots of casinos. The one thing I can tell you is that all well-run casinos make money. Lots and lots and lots of money. This tells me that Mr. Trump is not a good manager. Trust me, anybody with an ounce of common sense who has some experience gambling could run a profitable casino. It’s hard not to be a profitable casino. Really hard.
If you gave me $100 million dollars and told me to return $110 million by the end of the year running a casino, I could do it easily. I bet I’d pocket a good $10 million or more after that as well. It’s all percentages. Steve Wynn and George Maloof have done it superbly. You don’t build billion-dollar mega-resorts because people come and win. People lose.
Just because you’re famous doesn’t mean you’re smart. I think Trump’s bamboozled people for a long time. He’s just a jerk. He’s great at real estate, but keep in mind this is not his first bankruptcy. I just wanted to rant about this.
— Eric