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Isn't investing just gambling?
01-26-2013, 08:58 PM
Post: #11
 
The difference between investing and gambling is not depend on which instrument you play, be it poker, roulette, stock, future etc. The difference is knowledge, skill, know-how. If you know you odds of playing poker and by calculating you have a good chance to win, then you are investing. Same apply that if people don't know how to invest in stocks but think buying stocks is sorts of investing, then he/she is gambling their hard earning money.

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01-26-2013, 08:58 PM
Post: #12
 
Successful investing (long or short-term), has some similarities to gambling - though, it is a bit of a tenuous link.

Just as the gambler hopes to increase his pot of money, investing in a company is supposed to be unemotional, cold and calculated to earn money. You seek to remove, or mitigate against any unknowns. Gambling is more an 'all-of-nothing' affair - though the same principles apply.

I'd say it's more like horse-racing. A good horse may take years of training to gain the potential for being a race-winner. There are random factors which may accelerate or impede this progress - most horses will be defeated by one or other of these factors and never win. Eventually, even the best winner becomes a pot of glue.

By researching appropriately into a company - checking out the financial history and gauging the performance and overall value of the company in the market - you hope to make more money by increasing price of the stock AND/OR increasing dividend return.

The good thing is: Miracles do happen.
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