: what did Charlie Munger mean when he said “gambling has a negative Net Present Value”?

Question

: what did Charlie Munger mean when he said “gambling has a negative Net Present Value”?

In: 1

Answer 1

Because gambling is generally a net loss, regardless of scale.

the money you are spending in it is money you are not investing into somethin g that can actually incrase in value however small .

there is also the fact that most insituitions that offer gambling as a service, do to so with the intent ot make money, so the game they offer where possible have the odd slighty stacked in their favor(the ever so common Expression ” The House always wins” is very much true) s othat in the long run anyone using their installations is losing money.