Gambling and investing?

Investing is an umbrella and gambling is a child of it (if that makes sense, lol)

This post was edited by ChocolateCoveredGummyBears on Jun 11 2022 07:23pm

Generally investors want to hold as long as possible, gamblers want to dump as soon as possible.

Game of cards doesn't last indefinitely/years like a real estate or gold etc. So what truly separates investing and gambling on rudimentary level?

This post was edited by addone on Jun 12 2022 01:50am

Investing on the whole is successful

one is taking monetary risks where you have no control over the result due to a slanted and hostile playing field

the other is gambling

Gambling is necessarily a negative sum game. The house takes a rake, which leaves a smaller pie after each transaction. Outside money is necessary to sustain the operation. The only games where you can expect to make a profit are those that are skill based (e.g. poker), and where your skill advantage outpaces not only your opponent but also the house's rake.

Investing is a positive sum game. Companies generate cash by selling products and services. They can return that cash to you, and reinvest it to generate more cashflow down the line.