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Chart of the Day: Investing vs. Gambling

Crews Bank & Trust Wealth Management Services Nov 20, 2025
Chart illustrating the difference between investing (solid blue line) and gambling (broken blue line).

Contents

Today’s Chart of the Day is from Michael Mauboussin and highlights the difference between investing vs. gambling. 

In the short term, they appear nearly identical because short-term fluctuations in returns are similar; however, in the long run, the benefits of buy and hold (investing) vs. speculation (gambling) becomes apparent.

Investing is buying an asset in expectation to receive the future flow (in the form of dividends,) while speculation is buying an asset in hopes that another investor is willing to pay more for it.

Gambling is a zero-sum game (think of a poker table—for every dollar won, there is a dollar lost) and over time, the trading costs, taxes and efficiencies of the market make the odds of winning less.
Chart of the Day

About the Author

Crews Bank & Trust Wealth Management Services
Crews Bank & Trust Wealth Management Services

Experienced professionals from our wealth management services team can help you achieve a bright financial future through investment strategies tailored to you. We’ll show you all of the options available and help you choose the ones best suited to you. We’ll provide high-quality, personal service as we work toward your goals together. Our Portfolio Managers do not receive commissions on trades; our recommendations of investments are based solely on your best interests.

Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.

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