What's the difference between investing and gambling?

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Comments

1. When someone tells me that investing is gambling I know to stay away from them. It is possible to gamble in the markets and when I talk to another "investor" who says he is investing but talks about the markets as if he is at a casino then I know to stay away from him too. Understanding the difference between calculated risk and gambling is simple but it's very emotional for a lot of people for some reason. I don't think that people who don't or won't understand the difference will build wealth in the long run.
   
   I have talked to people who say that stock markets are gambling but buying and selling real estate is investing. It is the same thing but they refuse to see it. I used to argue with people on these points but now I realize that it is pointless and when I encounter such people I just get away from them. Unless it's a young person asking honest questions. But then usually they go and ask someone else the same questions and I end up arguing by proxy which I then have to cut off as well.
2. When gambling, you have a casino working AGAINST you to make money. Investing in stocks, etc you have a company that wants to make money and then YOU make money.
3. his answer <
4. What you're betting on I MEAN what you're speculating on hahaha... Freudian slip... still a fan Dave great advice
5. psst sports betting is easier...
6. Anytime you take a risk with your own money, it's gambling
7. You are so wrong Dave. I don't care how websters defines gambling. The stock market is gambling. In the market you are taking a risk. You could lose. I can happen and it does happen. You analyze stocks and gamblers analyze other things. You are RISKING your money. You could lose.
   It's possible!!!!!!!
8. It is somewhat like gambling, the difference is that gambling it is defined by the house. The stock market are very influenced by the investors themselves. In the stock market you put x amount of money, and you can get back 0.9x, 1.1x, 0.5x, 1.5x... while in gambling you gamble x and you either get 0, or yx, with y being the percent return of you win. They are similar, but I wouldn't call investing gambling, however, I completely understand why some people would call it like that. Have a good day!
9. Hmmmmm I'm pretty sure my aces are still good but I'm not 100% sure. I'm pretty sure this stock is still going to go up but I'm not 100% sure..... But they aren't even remotely close....
10. In the stock market the odds are in your favour, in a casino the odds are with the house. If you play to infinity in a casino (hypothetically) you should lose according to probability. If you play forever in the stock market, you should win (unless human civilization gets wiped out or there is a major nuclear war).
    
    Let's take the FTSE 100 for an example, on average 99.4% of people make money if they hold stocks in the FTSE 100 for 10 years (this includes Total Return, so dividends and capital gain). This drops down to 80% when stocks are held for 5 years, when we go down to a month, the odds drop to 55%. So we can see stocks are a long term bet, ideally 5 years plus should be a minimum investment horizon.
    
    Any money you need within 2 years should be in cash or investment grade bonds. 2-5 years should be in general bonds. 5 years plus should be in stock market.
11. I agree with Dave's conclusion, but not with his explanation. With gambling, you put up money for nothing of value in return other than the chance of receiving more money. With gambling, you have no choice on the deadline when you will either have nothing or have a profit.
    
    With investing you exchange cash for something of equal value with the hope that its value will increase with time. If it doesn't, you still have the good you purchased.
    
    Dave kept talking about the similarities between the two instead of the differences. Both have risk, both can be mitigated by research.
12. Is not a fall of a card, is not a roll of a die, it's just a speech of a politician, is just a front page of a newspaper.
13. Huge Dave fan but was heart broken when he said that gold was a bad investment!
14. It's like sports gambling though. You can research teams, players and their injuries, personal lives, etc. Then make an informed decision to bet.
15. It's totally gambling! Look how defensive this guy gets about it.
16. Oh hello! Have you heard about - Ads Crix
    Real Estate Offer (search on google)? Ive heard some extraordinary
    things about it and my auntie got great money with it.
17. gambling is doing nothing but spending your whole working life.
18. Hey Dave, I'm a big fan, but I can't help but disagree. I have just as much say in who wins a horse race as I do in what stocks go up, that being absolutely 0. I can always look into the past performance of 'Jumping Jimmy' just like I can look into the past performance of Twitter. The way I see it, and the way I hear you describe it, is just that your odds are better on the stock market.
19. He literally defined gambling in his explanation of how stock investment works. Gambling by definition requires 3 factors: skill, chance, reward. So I guess investing has a 100% guarantee you'll be rewarded in this guys rotted brain. But ya, just write off another persons opinion by saying its pessimistic therefore a fallacy.
20. "I'ts not gambling, (proceeds to explain how it actually is gambling), but it's not gambling tho!"