Investors? Gamblers? What's the difference?!

Here’s an interesting definition for you from InvestorWords.com:

Investment: In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use [of] money in the hope of making more money.

And here’s another definition for you, this time from The Free Dictionary:

gam·ble (gmbl) n. 2. An act or undertaking of uncertain outcome; a risk: I took a gamble that stock prices would rise.

I abridged the definition, and, no, I did not make up that example! And since gamblers count on making more than they lose, I can’t really tell much difference between the two definitions.

To recap:

If you consider yourself an investor and you have money tied up in the stock market, you’re a fool, because expectations don’t generally influence reality.

If you have money tied up in the stock market and you consider yourself to be a gambler, you’re on the right track.

So when your shares in Wachovia took a nosedive today, as mine did (what was worth five figures last month is now worth only a few hundred bucks), consider yourself unlucky today, and better luck next time!