April 13, 2021


world magazine 2020

The Difference Between Investing Gambling Is


According to Investopedia, Investing is “The act of committing money to an endeavor with the expectation of obtaining an additional income or profit.” Warren Buffett defines investing as “… the process of laying out money now to receive more money in the future.” Interestingly, you can use live22 same definitions for gambling. So what’s the difference between the two?

I believe the fundamental difference between the two is that gambling involves random chance while investing requires RESEARCH. That’s what I used to do for a living. I was a research analyst at Goldman Sachs. It was hard work. But I loved it because I love doing learning.
But many “investors” think investing in the stock market, or Crypto, is like walking into a casino. They throw money at a stock or a token, or a basket of stocks or tokens, based on a rumor, tip, or something they believe. They do little research (if any) into each token. Traditionally, it goes great (see internet investing 1996–1999) until it doesn’t (see internet investing 2000)

There are two reasonable explanations for Ripple being worth more than many of the greatest company’s on the planet. The first is that it’s different this time. Could be. But if you read “This Time Is Different: Eight Centuries of Financial Folly”, you probably think it’s reason #2. That people are just simply gambling, without care or concern for things as mundane as valuation.