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Can You Invest Without Gambling? Can You Gamble Without Investing?



A few investment advisors have been known to use the term “punt” to describe their recommendation for buying particular shares. I can understand the similarity between backing a horse that comes 4th in the chosen race and buying a bundle of shares on the stock market and watching them drop in value by the end of the day.


At least your horse can line up in a different race next Saturday, but the share you’ve punted on might keep “running” for years. It’s only for the horse that you need to find some more money. I’m aware that some owners of race horses treat their four-legged property as investments and some of them are spectacularly successful financially.


There is absolutely nothing wrong with buying shares on a hot tip (as long as the tip didn’t come from a member of the Board) for the sole purpose of collecting your “winnings” when the share goes up and you sell. That’s gambling.


I bought my BHP shares over 40 years ago. I still have them and they're still paying dividends. That's investing.