Both investors and gamblers seek risk.
But investing is not gambling:
Gamblers create risk, while investors (speculators) deal with pre-existing risks. Investors (speculators) help to transfer this risk from those who dont want it to those who do (much like insurance companies take your risk for a fee).
Gambling is a zero-sum game, investing is not.
Investing has a positive expected return, gambling has a negative expected return because the house must earn a profit and cover its costs. This means that in the long run, investors make money and gamblers lose money.
Investing is a productive activity that provides benefits to society as a whole (channeling funds to those who need and deserve them); gambling provides no benefits beyond the enjoyment of risk by the gambler.
Ajay
But investing is not gambling:
Gamblers create risk, while investors (speculators) deal with pre-existing risks. Investors (speculators) help to transfer this risk from those who dont want it to those who do (much like insurance companies take your risk for a fee).
Gambling is a zero-sum game, investing is not.
Investing has a positive expected return, gambling has a negative expected return because the house must earn a profit and cover its costs. This means that in the long run, investors make money and gamblers lose money.
Investing is a productive activity that provides benefits to society as a whole (channeling funds to those who need and deserve them); gambling provides no benefits beyond the enjoyment of risk by the gambler.
Ajay