Streaming issues? Report here

Up Next: Early Breakfast with Abongile Nzelenzele
See full line-up
MyMoney Online

The stock market is not a casino. Investing in shares is nothing like gambling

2 September 2019 6:31 PM
Too scared to “gamble” away your hard-earned cash? Kabous le Roux asks you to consider this simple argument with an open mind.
Stock market investors - they're not simply hoping that luck is on their side. (, 2019)

Investing in shares over longer terms is nothing like gambling.

The stock market is not a casino.

Gambling - unlike investing in shares - is a zero-sum game whereby money is taken from the loser and given to the winner.

Nothing is given in return and no value is created.

When you invest in the stock market, you’re buying a piece of a company.

You become an owner of the company’s assets and you share in their profits.

How is this like gambling?

The value of shares is extremely volatile over short terms.

So, it’s a “gamble” in the sense that, if you’re in it for a quick gain, then you might have to sell when the stock is down, thereby losing money.

However, even if the value of the shares you own falls, you’re not left with nothing, you still own part of a company (admittedly one that is worth less than before) and next month the stock might be up again.

Stock market investors don’t just randomly chuck their money into an investment.

There might be some uncertainty regarding outcomes, but you're not simply hoping that luck is on your side.


(Click here for more personal finance articles.)

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter

2 September 2019 6:31 PM

More from MyMoney Online

What is better - money in the bank or investing in shares?

12 September 2019 11:17 AM

Personal finance expert Warren Ingram offers a definitive answer with an explanation ordinary people can understand.

Read More arrow_forward

Spock is not greedy – or fearful – when investing. Be like Spock. Here’s how…

12 September 2019 10:46 AM

Live long and prosper! Personal finance expert Warren Ingram shares four tips on successful investing.

Read More arrow_forward

Retiring in the next decade or so? Tips and tricks to apply, right now

11 September 2019 11:41 AM

Personal finance expert Warren Ingram discusses five things you should do right now if you're to retire in 10 years, or so.

Read More arrow_forward

How to ensure your broker keeps her investment fees low. A case study...

10 September 2019 10:27 AM

Personal finance advisor Warren Ingram chats to The Money Show’s Bruce Whitfield about broker fees.

Read More arrow_forward

How much to save for retirement (a handy guide, and easy-to-use calculator)

9 September 2019 3:45 PM

When saving for retirement; how much is enough? Here’s a quick guide. You might want to sit down for this.

Read More arrow_forward

How to spot a sophisticated investment scam

4 September 2019 3:33 PM

Scams range from crude and clumsy to the highly polished. Bruce Whitfield interviews personal finance expert Warren Ingram.

Read More arrow_forward

Why Mergence Investment Managers are buying Naspers/Tencent, Motus and Datatec

3 September 2019 8:00 PM

Portfolio Manager Peter Takaendesa shares his stock picks of the week on Bruce Whitfield’s The Money Show.

Read More arrow_forward

8 lessons about investing I learned while driving my car

2 September 2019 6:36 PM

Financial planner Gregg Sneddon ("The Financial Coach") uses driving as an analogy to teach valuable lessons about investing.

Read More arrow_forward

How to structure an income/life annuity portfolio for long-term growth

30 August 2019 1:09 PM

The Money Show’s Bruce Whitfield interviews Peter Calitz, Certified Financial Planner at Peter Calitz Financial Services.

Read More arrow_forward

'Hype, hogwash and agendas often drive media coverage of markets'

29 August 2019 8:24 PM

Markets are crashing! No, it's just normal volatility. Personal finance advisor Warren Ingram on how to see through the headlines.

Read More arrow_forward