Investing Versus Gambling

Investing Versus Gambling: The hands of a person playing poker in a dark room, with cards and poker chips on the table in front of him.

A recent article from FYG Planners provides food-for-thought for those of you who may be considering investing. They discuss the key differences between investing and gambling.

“There has always been a debate about the overlap between gambling and investing. Investing has often been linked with gambling, usually unfairly by people who take a cursory glance and don’t understand the actual intermediary of investing and gambling is speculation.”

So what are the differences?

Investing

  • Long time frame
  • Lower risk level
  • The expected return is usually positive
  • Non-dependent on a definitive outcome

Gambling

  • Short time frame
  • Higher risk level
  • The expected return is usually mixed
  • Dependent on a definitive outcome

Explore these and other differences in full by reading the article here. The feature also explores ‘speculation’ – situated somewhere between investing and gambling – and includes examples of homegrown Australian investment success stories.

If you are considering investing, it is strongly recommended that you first seek the guidance of a qualified financial adviser.

Baldwin Financial Services is based in the northeastern suburbs of Adelaide.
Contact us to find out how we may be able to help you.