However, as we began to study smaller games, such as the Pick 3, we realized that given the right circumstances, a player could achieve a reasonable expectation of winning. In these cases, we do not believe one can expect to receive a mutli-million dollar windfall, but perhaps a continuous 10% or 20% return was possible.
Considering these realistic return percentages, we began to compare realistic returns that investors achieve in the stock or other markets. In good times, a stellar fund may reward investors with similarly high rates of returns. So we wondered:
To help understand these answers, we have decided to write an investigative comparison of both gambling and investing.
In the issues that follow, we will present:
- The definitions of investing and gambling
- Outline why this topic is important at this time
- Identify the differences between the two of these
- Present examples of successful investors and gamblers
- Examine various gambling games and investment options
- Look at the profile of a typical investor and gambler
- Compare the mathematics involved in both disciplines
- Consider whether the outcomes can be manipulated
- Conclude by quantifying whether investing is also gambling.