The idea that investing and gambling are fruits of the same tree is old and misguided. Though similarities exist, the same can be said about many non-related activities that share minor attributes. In the case of gambling and investing, both involve the use of risk and choice. For instance, both gaming and investing require an assessment of how much capital will be chosen and what limit they will continue with the activity until the cost of risk is too great. But even with this comparison standing, there is relatively no substantive relationship between the practices of gambling and investing.
We’ve all heard the adage: the house always wins. The following graphic shows that adage in play.
The graphic shows five of the most popular Vegas games: baccarat, blackjack, poker, roulette and slots. Regardless which game you pick – you’ll have more than a 50% chance of losing your money. When it comes down to it, the odds aren’t in your favor to keep your money, let alone return to the cashier with more chips than you’d originally purchased.
But in the case of investing, even during a short term of one year, the market provides at least a 75% chance of earning money. Unlike gambling, the longer you stay at the table in the market, the better your odds, with a 99.8% of receiving a positive return when investing for a period of 15 years. An additional perk from investing; you can consult with professionals that are educated and experienced to potentially help improve your investment returns; try this with gambling and you’ll get kicked out of the casino.