3 ms·
How is the long term not gambling? No one knows what going to happen tomorrow let alone in ten plus year. My bet is: it all comes down to risk tolerance. In t
by TheSpiceIsLife 9y ago
How is the long term not gambling?
No one knows what going to happen tomorrow let alone in ten plus year.
My bet is: it all comes down to risk tolerance. In the long term some forms of investments have shown, historically, to be consistently less risky, or more risky, than others.
- tomkarlo 9y agoGambling and investing both involve risk, but they're not the same thing, and there's important differences. In particular, in most gambling, the sum of returns to participants is less than the amount wagered by all parties, whereas in equity investment it's generally / historically the opposite. Additionally, whereas gambling is generally fairly time-bounded, investing isn't, and in fact often rewards longer holds via dividend and coupon yields in addition to the potential difference between purchase and sale. More to point: most studies show that you do best in investing simply by having money invested for long periods, and being diversified to mitigate secular risk. That wouldn't work in gambling.
- TheSpiceIsLife 9y agoYou've made some great points, thank you.