People are less bothered by financial losses when they think they are ‘investing’ rather than ‘gambling’ (even in the same context). Being less loss averse when money is framed as an investment can be detrimental to financial decision-making.

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Perhaps for the misinformed, 30 years of the S&P 500 vs 30 years of blackjack are demonstrably different. Still point taken, if unaware of some subtleties they can seem similar.

ltburch

r/cryptocurrency as a prime example.

saandstorm

Wall Street has convinced people that selling a stock when it’s down is “locking in your losses”. While this is true in the long term, sometimes a bad investment is worth walking away from. Gambling is always a bad investment unless you’re really lucky. Even then, you only come out ahead if you have the willpower to walk away.

HumpDayFTW

Literal gambling is a zero sum game, thorough, always. No one can win without someone losing / paying. Business investments are not necessarily fixed games with known zero-sum odds. This is why broad index fund investing is so recommended: in the long run entire economies tend to grow, benefitting all. So why wouldn’t you look differently at a business investment than a gambling bet? This is like saying fishing is gambling too, because there’s chance involved in getting anything out of it.

scarabic

People don’t like feeling dumb. Wild stuff

mdizzle872