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Originally Posted by stephencp Luck/gambling - I would include most "investing" in this category since you're often just hoping that the price will go up... |
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Originally Posted by RT Wolf  Totally disagree with you there.
As a value investor, I have a fair idea of what the stock is worth. Then I just wait until everyone else realizes. |
Have to agree with RT Wolf. There are people who gamble and call it investing (buying a house and hoping it appreciates, buying a stock and hoping it goes up... basically, if your business plan involves the word "hope", you're gambling) But calling a tail a leg does not make it so.
If you buy a house that's in a neighborhood where all the other houses are worth $250,000, and the house you buy looks exactly like the others, and has the same features as the others, and is the same size as the others, and you bought it for $50,000, this is not gambling. It's far less risky (as far as making money goes) than going to work in the morning
hoping your boss won't fire you. So that's only gambling if employment is as well, because you're hoping that you'll find a job, keep a job, and continue to get raises.