The following is my answer to a Quora question: “Is investing essentially glorified gambling?”
In this context, to gamble is to take risky action in the hope of a
desired result. You have no real power
to affect the outcome, and depend almost wholly on chance. On the other hand, to invest is put funds
into financial schemes, shares, property, or a commercial venture with the
expectation of achieving a profit.
Investments can be akin to gambling if you treat it like chance. It is a science. Before you invest, there is homework to be
done, which includes seeking financial advice, looking at reports and analysis,
and understanding the movement of the market of customer base. That means you gave some power to affect the
process, and seek a desired outcome.
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