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Activision Blizzard, Inc. (ATVI), Electronic Arts Inc. (EA), Take-Two Interactive Software, Inc. (TTWO): You’d Never Play This Game at a Casino. So Why Invest Like This?

Similarly, Electronic Arts Inc. (NASDAQ:EA)’s stock price has risen on the company’s improved business performance, dwindling losses, and shift from packaged distribution to digital fulfillment, which is having a strong positive impact on the bottom line. And while one could point out the disparity between GAAP and non-GAAP figures in the company’s annual and quarterly reports, digital distribution is more profitable and has strong consumer appeal.

Don’t get caught up in the hype

Much like the farcical card game at the beginning of this article, investing with a short-term focus will result in erratic and typically poor performance. Keeping a long-term view, however, changes the game. While the near future will always experience irrational swings, that volatility smooths out over long periods of time, and the shares of well-run business will trend steadily upward.

So step away from the table and keep your eye on how the businesses you own are performing. In time, you’ll be glad you did.

The article You’d Never Play This Game at a Casino. So Why Invest Like This? originally appeared on and is written by Jason Hall.

Jason Hall owns shares of Activision Blizzard. The Motley Fool recommends Activision Blizzard and Take-Two Interactive. The Motley Fool owns shares of Activision Blizzard. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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