Investment and Gambling

Investment and gambling are both probability games. There’s no guarantee in either one that you will win.

The difference is, that the probability of winning is very high for long-term investment and very low for gambling. In two of the extreme cases, a 30+ year well diversified investment portfolio has a 99%+ chance of winning big, while the Supper Lotto has  a 99.9999999% chance of losing completely. In another word, it’ll be a surprise to lose a long-term investment, and it’ll be a big surprise to win a lottery.

While it’s not possible to get rid of all the investment risks, the probability of winning is under everyone’s control.

One thought on “Investment and Gambling

  1. Pingback: Investment and Gambling | kentcaus

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