Friday, December 15, 2006

Gambling and investing are very different

I disagre with the previous two posts. Gambling and investing are two very different activities. Gambling is an activity in which the outcome is based on chance. On the other hand, investing involves research and analysis, and a sound judgement based on critical reasoning. Hence, the most important thing that separates investing from gambling is that investing involves taking a 'calculated risk'.

Agreed

I totally agree that investing and gambling are the same. Ask most people who invest in stocks and they'll tell you that they did it because of some 'reliable tip' from a friend of a friend. Would you call that investing? I don't think so. So, for majority of people, investing and gambling do not have any differences.

Gambling = Investing

I think they are both very similar. Isn't investing also something like gambling? I mean, you cannot really predict what will happen, say, in the stock market. Sure, you can say that a company is worth so-and-so amount of money, but the actual price of its share is determined by supply and demand. Surely this means that investing in stocks is very much just gambling? So, I would say that investing is just another form of gambling.

THINK!

Investing vs. gambling. What's the difference? Post your thoughts!