4.4 • 3K Ratings
🗓️ 8 April 2023
⏱️ 25 minutes
🧾️ Download transcript
A survey from Lending Tree found that a majority of Americans thought investing was just as risky as gambling. And sure, the stock market can be a casino, but it doesn’t have to be. Anand Chokkavelu and Ricky Mulvey discuss:
- The lines between gambling and investing, and when they get blurry.
- Games that Wall Street traders play.
- Positive sum, negative sum games, and how to know the difference.
- How Uncle Sam helps investors more than gamblers.
Host: Ricky Mulvey
Guest: Anand Chokkavelu
Engineer: Dan Boyd
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0:00.0 | Here's the beauty of the stock market. |
0:02.9 | This is why people call it the greatest money making engine ever. |
0:08.2 | And it's because if you're a mediocre or average stock market investor, you can expect |
0:13.5 | about 10% a year minus fees. |
0:15.8 | That's why you want low cost index funds. |
0:18.6 | With no work through those index funds, you can be a crappy investor and still make positive |
0:26.2 | returns. |
0:30.2 | I'm Dylan Lewis and that's the Motley Fools on InChocovulu. |
0:34.0 | If the difference between gambling and investing is obvious to you, then you're in the minority. |
0:38.8 | Ricky Movy caught up with Chocovulu for a deep dive on the differences, similarities, |
0:42.8 | and gray areas between gambling and investing. |
0:45.3 | Why small investors can win from the games that Wall Street traders play and what investors |
0:50.2 | can learn from gamblers. |
0:52.2 | I think there's an assumption that many would say, oh, I know the difference between investing |
1:02.7 | and gambling, but that distinction is not that clear and I think it's worth kind of doing |
1:07.7 | a deep dive into the difference between them and why it's important. |
1:12.2 | Very excited for this, Ricky. |
1:13.2 | Yeah, there's a lot of gray area here and we're going to explore all of it. |
1:17.1 | To me, I define it is gambling represents an all or nothing bet on an outcome with a |
1:24.2 | defined expiration time. |
1:26.4 | So a slot machine sports betting, Blackjack even poker fits into that because you're placing |
1:31.8 | an all or nothing bet that your cards are better than your competitors, even though it may |
... |
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