Many people avoid investing in stocks, reasoning that it is not much different than gambling. Nothing could be further from the truth. It is true that chance is inherent in both endeavors. But there the similarity ends.
There is no intrinsic benefit to gambling. It results in no net gain to society. It is a narcotic that makes some “feel” good, but does not truly result in any kind of progress. Furthermore, those who succeed at gambling are those who can most skillfully leverage and exacerbate the chance inherent within it.
Stock investing (done successfully) allocates capital to the most worthy and valuable enterprises and starves poorly run businesses and bad ideas of funding. And smart, shrewd, and successful stock investors skillfully reduce the chance inherent in stock investing. They try to structure their portfolios such that their portfolios rise or fall solely based on their ability to identify and invest in businesses creating real value. Successful stock investing is the engine that drives society forward.
So those who consider investing in stocks equal to gambling should reassess their position. Stock investing is only as similar to gambling as an individual investor wants to make it. Smart investors make it as different to gambling as they can. Smart investors seek out the best performing stocks by coveting and investing in the best long term stocks that are creating real value.
Furthermore, identifying the best long term stocks is a straightforward endeavor. It is not the exclusive domain of a select few who have propriety knowledge of some powerful, mysterious or abstruse insight.
If you doubt this, do a search of the best stock research sites. Give special attention to those that embrace and espouse no-nonsense, fundamental analysis. These are the ones that truly try to determine the intrinsic value of the stocks they cover. Study their analysis reports, recommendations, and blogs. Successful stock investing is a skill; and any valuable skill takes time and effort to master.