How is investing different from gambling?

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Due to the No Arbitrage Principle, in theory, there should always be risk when you invest, however investing is seen as smart common sense which every adult needs to do whereas gambling is a poisonous addiction we need to curb, what’s the difference? To me, it seems that only when the market is exploitable and not fair, is there a true difference, apart from the immediacy of the results of many types of gambles vs the drawn out nature of investments

In: Economics

8 Answers

Anonymous 0 Comments

Gambling is playing at a disadvantage and hoping to be lucky to overcome it, that’s why the casino is not said to be gambling, just the customer. Investment portfolios have a long term positive return, especially actively managed portfolios.

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