Gambling, Speculating, & Investing by Stella Osoba, CMT
Place Your Bets
What do these terms mean as applied to the participant in the financial markets? Lets have a look to try to come up with some clear definitions.
Bernard Baruch, the famed American financier and investor, often repeated the following quotation, which he attributed to Sir Ernest Cassel, good friend and banker to King Edward V11:
"When as a young and unknown man I started to be successful I was referred to as a gambler. My operations increased in scope and volume. Then I was known as a speculator. The sphere of my activities continued to expand and presently I was known as a banker. Actually I had been doing the same thing all the time."
Much the same could be said today for gambling, speculating, and investing...