As a vacationer in Las Vegas I might get lucky and hit a
big jackpot but mostly I trade whatever money I came
with for a few days of fun. If a group of us pool some
money at a casino, give it to our best gambler and split
the pot when leaving we have a mutual fund.
Casino owners have massive amounts of money. They
can outlast any winning streak I have without even
noticing. They set the odds slightly in their favor and
wait patiently for me to lose. The small percentage who
go home winners brag to friends and increase future
Major players in the stock markets can influence up
and down movement and make money on either with
calculated buying and selling. Like casino owners they
have large reserves, are openly in it for the money and
act accordingly. Buy low and sell high is achieved by
getting someone else to do the opposite.
Investors are gambling like vacationers. A small
amount invested in a start up company can eventually
put me on easy street or be a total loss. Rising stock
values and dividends can make much more money
than interest from the bank or pay nothing. Mutual
funds depend upon the skill of our gambler.
Slots and other casino games give pleasure or pain right
now. Stocks take longer to win or lose. Either type of
gamble is fine if I can afford the down side.
Sanity is a sound plan for taking the worst possible
outcome in stride. If I can’t do that I should smile and
quietly exit. No amount of excitement will make up for
my loss of self respect after losing the rent money.
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