In reality, gambling (gamming to be more accurate) IS a calculated risk. An example would be betting on red vs black at roulette. You can bet on either and have a 47.4% chance of either doubling your bet or a 52.6% chance or losing your bet. If you cover 0 and 00, you increase your odds of winning to close 50%, so yes, it's calculated.Isn't there a difference between calculated riskS versus gambling?I think stock market investing is a gamble as much as life is. We choose a career, a spouse, have kids, buy a house, and a car. No one knows how any of the choices will turn out. Investing is just trying to participate in the success of businesses. Sometimes business does not do well and sometimes it excels. So I put my hard earned money into a system where I believe capitalists will try to make money and I will receive a benefi of their success.
All risk taking is not necessarily gambling , correct ?
The real difference is that gamming is not an investment, you don't receive part ownership in the casino when you buy your chips. You just buy your chips and (if rational) you expect to lose those chips.
Now, compare those odds with the calculated return on investments which require a time-varying approach to asset allocation, described here.
https://corporate.vanguard.com/content/ ... arget.html
Statistics: Posted by retireIn2020 — Tue Oct 08, 2024 11:17 pm