Monday, October 15, 2007

Investing in Stocks is not Gambling

  • Gambling transfers wealth from a winner to a loser because it produces nothing. Investing increases overall wealth because the capital invested in stocks provides the initial funding for firms which exist for the purpose to producing goods and services.
  • The value of stocks trends steadily upward over time. They do not seesaw back and forth in the same range forever. In the aggregate, stock investors demand and receive a return that is substantial and permanent.
  • In gambling that longer duration you stay more the chances of you loosing whereas in Investing the longer you stay invested more you will earn. :)

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