(Distinctions are subtleties of language that, when gotten, cause a shift in a belief, behavior, value or attitude.)
Risk is risk, nothing more, nothing less. Investors take risks and gamblers take risks. However, each of these types deal with risk differently.
An investor looks at an opportunity, determines if it is appropriate for their desires, invests, and waits for the outcome. A gambler does the same thing.
What’s the difference that makes the difference?
A gambler needs the win in order to feel good about herself. The investor feels good by having been in a good deal. Infact, an investor can feel great by passing on a deal that’s not right for her. The gambler is afraid to pass on a deal because it might pay off and she will have missed out!
Are you an investor or a gambler?
Copyright 2000 Steve Straus. All rights reserved.