Investing vs. Gambling
Investing vs. Gambling - Greed for that which causes happiness is good.
Greed for that which causes misery is bad. May we all know the difference...Many articles
discuss the difference between investing and gambling. But they don't always cut to the root of the issue so you
can be certain to avoid all self defeating behaviors. The crux of the issue is the intent underlying
the investing decision. Secondarily, we need to address whether our decision process is skillful.
Healthy Investment Process - Rubbing two sticks together intensely to cause a fire will
not work if you will burn out first...but a small continuous dripping of water can bore a hole through a boulder.
Patience and light continuous efforts prevail...Once we know what we should and should not do, we can go
back and look at standard investment processes used by advisors and market pundits to understand which will produce
benefits and which is harmful. Skillful investment processes focus on small improvements in returns over long
periods of time. Avoiding the large, obvious mistakes may be one sensible way to accomplish this. Fundamental
analysis, or evaluating how much a company earns to determine how much we might earn in the future, addresses the
objective of the investment process. Technical analysis only deals with the underlying price trends and ignores
what the company does, so it is not skillful.
Putting it all Together -
We have nothing to fear but fear itself...and the fear of fearing fear itself...and the fear of fear of
fearing....The point of studying this material is not just wealth accumulation or destruction, but
understanding the impact on your serenity day to day so you can make sound judgments.
Legal - The purpose of this site and all services offered are educational in
nature and not to provide any investment advice, planning or recommendations of any securities. The purpose is to
educate you to make your own financial decisions, or prepare you to evaluate your financial advisors with
confidence so you can gain trust in the services they provide.