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I agree there is some amount of risk in everything. When I say bet, I mean a zero-sum game like in a casino. Somone needs to lose money in order for you to gain
by dougmwne 6y ago
I agree there is some amount of risk in everything. When I say bet, I mean a zero-sum game like in a casino. Somone needs to lose money in order for you to gain money. No new money is being created in an options play or a GameStop squeeze. For you to gain 10 dollars, ten people must lose a dollar. The best you can do is encourage more players to join the bet to increase the size of the pot and the less they know the rules of the game the better.
That scenario is pretty dissimilar to something like the value of a currency, which has value in proportion to the participants' trust in its stable value and how easily they can trade it for goods and services.
So to standardize on terms, I mean "bet" like I am betting on roulette, not "bet" as in I bet my bank will still be solvent tomorrow.
- philihp 6y agoShort term investing is for sure a bet. Long term investing is a bet with the house edge in your favor, because of corporate buy-back and dividends.
- dougmwne 6y agoYes, I'd agree that the longer the timescale, the more you can capture new value that is being created as companies grow, make money and pay dividends.