Investing Always Gives You Better Odds Than Gambling

Why is Investing in Stocks is NOT Gambling?

Investing has long been equated to gambling, and there are some good reasons to support this argument. However, the majority of those arguments fail to consider one simple fact – most investment, when done properly, is the result of careful consideration, assessing all the facts, and making calls that are beneficial in the long term.

While a compilation of free roulette games may look completely luck-based, there are some informed decisions you could make to improve your chances of winning or minimize your chances of a loss. Well, the same applies to investing as well. Here are several reasons why we think investing is definitely NOT gambling.

#1: Investment Takes Research

The first thing to note is that if you are serious about investing, you will probably be doing your due diligence. In fact, you absolutely must do your due diligence to turn your investment into a meaningful opportunity. People who invest usually have several objectives, to name: short-term, mid-term or long-term success.

If you were to invest in Dogecoin, for example, or Gamestop stock at the beginning of 2021, you would have flipped that investment into a tidy sum by March that same year. However, this investment would have only worked in the short term as the “hype” for these two assets has subsided dramatically, leaving most investors with a smaller profit margin.

Mid-term and long-term investments are more research-heavy. People like Warren Buffett do not mind the short-term fluctuations when they find good stock. They just stick to it and see it turn into a profitable investment. But not everyone has the time to be as well informed as Warren Buffett, who supposedly reads 500 pages a day to keep up to date with current events around the world.

#2: Investment Is Not Down to Chance

Games of chance are the staple of the casino experience, and they boil down to this – chance. Even when you play roulette and base your gameplay on something like Fibonacci or Martingale, you should still pay attention to the fact that in the long-term, it all comes down to luck.

Investments are not like this. With the investment, the more and better informed you are, the better your investments will turn out. Let’s say that you are reading into sustainable food sources and spot a company that is showing promising results and is likely to account for a big chunk of the sustainable food market in ten years’ time.

This is an investment you do today, and that pays in a decade. Why sustainable food? Because there is no other choice for mankind to provide food. We are increasingly running out of unsustainable food sources.

Then again, not all such stocks make a good investment. That is why you should not just buy randomly but analyze whether a company is showing a promising enough result to prove that it’s worth buying into.

#3: Odds Are in Your Favor

The one and true thing about gambling are that the longer you play, the less likely the odds are to be in your favor. With investment, it’s just the opposite. The more you hold onto a promising stock out there, the better yields you will be able to generate in the long term. This means that people to continue benefiting in the long-term will always turn to invest first.

The way casinos work is simply not designed to make you richer as you go along. Investing, on the other hand, introduces no actual hindrances to achieving this goal. Essentially, people who wish to get richer from investing can do so, and there is no “house edge” to get away, which is a strong argument in favor of why investing is not actually gambling.

Of course, there are risks and some chances involved in the stock, but the more informed you are, the more negligible these concerns become, which is what matters here.