Why is investing not seen as the same way as it is gambling?
In: Economics
Investing is gambling, but a type of gambling with favourable odds. Unless a company goes bankrupt, their stock will trend upwards over the years. It may not go up this year, or in the next ten years, but over the course of a lifetime, it will probably go up.
Investment isn’t normally called gambling because gambling is a term often reserved for betting on improbable things. In casino, for example, every game has unfavourable odds, so people call that gambling. It is the same with other things in life. Education could be called a gamble because after getting a degree, there is a chance that you will not get a job. However, unless you get unlucky, you will probably find a way to make money from you degree. This is why education is seen as an investment, not a gamble.
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