Tag Archives: finances

Investing or Gambling?

7 Jul

dice

The stock market is great if you like to gamble, but dislike instant gratification. When you roll the dice, you know the outcome instantly. Either your number hit or it didn´t. With stocks, it is a little trickier. You can roll the proverbial dice, purchase some stocks or derivatives and have to wait years before you know if your number hit or not. And sometimes you can lose just because you could not wait the amount of time necessary to see your bet pay off, forcing you to cash in. But when you get down to the basic idea of stocks and games of chance or gambling on sports, there is little difference.

Even with all the information in the world, you do not know what tomorrow brings. You don´t know what new innovation will come making current technologies obsolete. You don´t know what is going on behind closed doors that could bring a company to its knees. You don´t know if the information provided to investors is in fact factual. On the other hand, nothing stops a gambler from delving into the stats and information of a sports team. One can make a pretty educated guess as to which team or fighter is going to come up victorious. With that said, no one can predict the future making both ventures very similar.

Some will use the term invest or investment instead of bet, which serves as both noun and verb. This may be a little verbal snobbery but it does not take away the fact you are putting money down now in hopes that it turns into more in the future.