: 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

That means that the house always wins. No matter how much money you dump into gambling, if you add up all losses and winning throughout someone’s life, there is a good chance that for absolute majority of gamblers the amount will be negative, meaning they lost more than they won.