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By the strict definition of gambling, the grandparents are correct: Buying stocks (even a diversified mix of stocks) is technically "wagering something of value
by ryandrake 2y ago
By the strict definition of gambling, the grandparents are correct: Buying stocks (even a diversified mix of stocks) is technically "wagering something of value on an unknown future event." We don't know whether stocks will go up or down, individually or in aggregate. It is an unknown future event. For the last ~100 years, the S&P 500 has had positive returns 73% of years, but there is no reason to believe or disbelieve that this distribution will continue for the next 100 years.
- ameliaquining 2y agoBy that definition, everything is gambling, because all activities involve risk. Even keeping your money in an FDIC-insured bank account doesn't protect against inflation risk, or against the risk of the U.S. government or financial system collapsing. So this definition of "gambling" is useless for practical purposes and we should pick a better one (or just stop using the word in this kind of discourse, since it tends to confuse people and provoke semantic disputes).
- scottyah 2y ago> "wagering something of value on an unknown future event." But that's so broad, every meal is a gamble. Taking opportunity cost into account as something of value, and the fact that the future is uncertain, literally every action is a gamble.