For individual investors, it's gambling all right -- though some, like currency speculation and futures, are much more so than others, even for institutional investors.
As an economic engine, a fact of modern life, investing is something that works. I think the debate over whether investing is pure gambling or managed risk has to do with the difference between a worm's-eye-view and a bird's-eye-view...on the ground, with just a few thousand dollars (I think Steve himself said it wouldn't make much sense without like ~100K-200K to burn), it's a crap-shoot all right...up at 30,000 feet, over the long term, with lotsa "disposable" cash, it's a smart thing to do.
One last analogy: as a group men are physically stronger than women, but actually any given man has no guarantee of being stronger than any given woman. Similarly, letting your money lay around only means that it will lose its value (purchasing power) over time -- but whether any particular investment would be better...there's absolutely no guarantee; not even a hint, really. Does that make it "gambling"? No, because there is no "house" using the same "system" time and time again, primed to invoke the Law of Averages, but different "houses" with different "systems"...however, it certainly *feels* like gambling, to be sure!
|