90

Is there a hard threshold? Do high risk investments such as penny stocks qualify as gambling? Do low risk investments? Annuities? Bonds? CDs?

This comment got me wondering.

Is it more to do with the venue? Stock markets and real estate vs casinos and the lottery?

Were the MIT Blackjack Team gambling or investing?

Or Jerry and Marge Selbee?

Is this just another semantic hotdogs are sandwiches discussion or is there an agreed threshold?

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[-] Steve@communick.news 1 points 4 months ago* (last edited 4 months ago)

It really kinda does.
At least as close as anything can be guaranteed in this world.
Buying into a broad market index fund (S&P500 or wider) and staying in for decades, will absolutely grow in value faster than inflation.

The key here is time.
Anything can go up or down on a daily, monthly, or even yearly basis; The longer your time horizon is, the more all that volatility gets evened out into a steady gentle climb upward. So much so that if you pick any 25 year period over the last 200 years, you won't find a single instance where the total value of all traded stocks was worth less at the end than at the start.

Because when you're investing in the whole market, you're investing in the whole society itself. And society is always doing everything it can to grow, produce, and consume more. That's what humans do. Random forces may slow or stop that, for a time; But as long a humanity exists, it will still be true.

[-] rah@feddit.uk -1 points 4 months ago

kinda does

"Kinda" meaning not actually.

as close as anything can be guaranteed

So not guaranteed then.

[-] Steve@communick.news 3 points 4 months ago

Yes. True. Just as not guaranteed as the sun rising tomorrow.

[-] rah@feddit.uk -2 points 4 months ago

I'm glad you've realised that what you wrote was incorrect.

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this post was submitted on 17 Jun 2024
90 points (95.9% liked)

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