9th May 2005, 12:03 AM
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Join Date: Jan 1970
Posts: 4,415
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Quote:
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Originally Posted by fast eddy
Chrome Prince wrote: "All investment is a gamble, be it term deposits with the bank, real estate, shares, racehorse ownership or punting." I have to disagree with this statement. Term deposits are not gambling. You get a positive return on the money invested at the negotiated % rate of your deposit. Real estate and shares are also positive returns based, even if the market flucuates you are still going to come out ahead, unless of course you invested in a dodgy company or house built on a swamp. Racehorse ownership and punting and gambling, plain and simple. They are both negative return "investments."
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Fast Eddy, I guess it's all about how one personally chooses to look at various forms of investment.
I have a strategy with the stockmarket, which gives a positive return with limited risk, I also have a strategy with horseracing which gives similar returns with about the same risk. Therefore, for me these are both positive return investments - only a rare longterm disaster could stop this cycle.
Whereas (for me) investing on a stockmarket "tip" or horse "tip" would be gambling. I've seen many people lose a lot of money from bad investments in Building Societies, Shares, and even real estate. This is why I equate the risk with the strategy, not the investment type. |