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Rank: Student Body President
Groups: Member
Joined: 3/5/2008
Posts: 1,396
Location: Wilfrid Laurier University
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tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially.
-Stringer
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Rank: Frosh
Groups: Member
Joined: 3/23/2008
Posts: 26
Location: Ontario
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Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially. It does if you win. lol And gambling IS a form of investing, you are INVESTING your money for a chance to win more, much like the stock market, except the risk/reward ratio is FAR different. It is one step up from giving your money away for free. None the less, is still is TECHNICALLY investing. And obviously if you are relying on winning the lottery to be your main source of retirement income, then yes, that is extremely stupid. But like I said, 1% of your net income is not that much, its 10 bucks if you bring home a grand a week net. Now would that $520.00/year do more for you in another type of investment? Yes it would for 99.999999999% of people...but for those with a horse shoe up their butt, there is no other investment around that is going to return you $10,000,000.00 on a $2.00 investment. And this is why it is not necessarily that bad of an investment in SMALL DOSES. *edit* Thanks for the tip on ETF's, I have not spent much time researching all of the different stock options yet, as I won't be in a position to seriously invest for at least a few years.
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Rank: Student Body President
Groups: Member
Joined: 3/5/2008
Posts: 1,396
Location: Wilfrid Laurier University
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tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially. It does if you win. lol And gambling IS a form of investing, you are INVESTING your money for a chance to win more, much like the stock market, except the risk/reward ratio is FAR different. It is one step up from giving your money away for free. None the less, is still is TECHNICALLY investing. And obviously if you are relying on winning the lottery to be your main source of retirement income, then yes, that is extremely stupid. But like I said, 1% of your net income is not that much, its 10 bucks if you bring home a grand a week net. Now would that $520.00/year do more for you in another type of investment? Yes it would for 99.999999999% of people...but for those with a horse shoe up their butt, there is no other investment around that is going to return you $10,000,000.00 on a $2.00 investment. And this is why it is not necessarily that bad of an investment in SMALL DOSES. *edit* Thanks for the tip on ETF's, I have not spent much time researching all of the different stock options yet, as I won't be in a position to seriously invest for at least a few years. I don't think you understand what investing is. Gambling is setup so that you have a negative EV. If you play 100,000 hands of BlackJack, you're likely going to lose. money. If you make 100,000 investments with positive EV, you're likely to win. It makes zero financial sense to gamble unless you have positive EV.
-Stringer
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Rank: Frosh
Groups: Member
Joined: 3/23/2008
Posts: 26
Location: Ontario
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Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially. It does if you win. lol And gambling IS a form of investing, you are INVESTING your money for a chance to win more, much like the stock market, except the risk/reward ratio is FAR different. It is one step up from giving your money away for free. None the less, is still is TECHNICALLY investing. And obviously if you are relying on winning the lottery to be your main source of retirement income, then yes, that is extremely stupid. But like I said, 1% of your net income is not that much, its 10 bucks if you bring home a grand a week net. Now would that $520.00/year do more for you in another type of investment? Yes it would for 99.999999999% of people...but for those with a horse shoe up their butt, there is no other investment around that is going to return you $10,000,000.00 on a $2.00 investment. And this is why it is not necessarily that bad of an investment in SMALL DOSES. *edit* Thanks for the tip on ETF's, I have not spent much time researching all of the different stock options yet, as I won't be in a position to seriously invest for at least a few years. I don't think you understand what investing is. Gambling is setup so that you have a negative EV. If you play 100,000 hands of BlackJack, you're likely going to lose. money. If you make 100,000 investments with positive EV, you're likely to win. It makes zero financial sense to gamble unless you have positive EV. Ok lets seperate normal gambling and the lottery first of all, it is ridiculus to associate an investment that pays 2x or 2.5x your wager to one that pays 5000000x your wager to be the same thing. Therefore, winning a hand of blackjack is not the same thing as winning 6/49. And I fully realize that the EV in playing the lottery is a negative, but that is not that big of an issue if you invest in the lottery sparingly. BECAUSE the potential payout more than makes up for the risk. I'm not going to budge on my opinion that investing in the lottery is TECHNICALLY a form of investing I don't care what the EV is. Because I know I am right. Whether or not it makes sense is completely different than whether or not is is a form of investing. Thats like saying "It doesn't make sense to drink battery acid, so it's not really battery acid." = SEVERELY flawed logic.
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Rank: Student Body President
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Joined: 3/5/2008
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tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially. It does if you win. lol And gambling IS a form of investing, you are INVESTING your money for a chance to win more, much like the stock market, except the risk/reward ratio is FAR different. It is one step up from giving your money away for free. None the less, is still is TECHNICALLY investing. And obviously if you are relying on winning the lottery to be your main source of retirement income, then yes, that is extremely stupid. But like I said, 1% of your net income is not that much, its 10 bucks if you bring home a grand a week net. Now would that $520.00/year do more for you in another type of investment? Yes it would for 99.999999999% of people...but for those with a horse shoe up their butt, there is no other investment around that is going to return you $10,000,000.00 on a $2.00 investment. And this is why it is not necessarily that bad of an investment in SMALL DOSES. *edit* Thanks for the tip on ETF's, I have not spent much time researching all of the different stock options yet, as I won't be in a position to seriously invest for at least a few years. I don't think you understand what investing is. Gambling is setup so that you have a negative EV. If you play 100,000 hands of BlackJack, you're likely going to lose. money. If you make 100,000 investments with positive EV, you're likely to win. It makes zero financial sense to gamble unless you have positive EV. Ok lets seperate normal gambling and the lottery first of all, it is ridiculus to associate an investment that pays 2x or 2.5x your wager to one that pays 5000000x your wager to be the same thing. Therefore, winning a hand of blackjack is not the same thing as winning 6/49. And I fully realize that the EV in playing the lottery is a negative, but that is not that big of an issue if you invest in the lottery sparingly. BECAUSE the potential payout more than makes up for the risk. I'm not going to budge on my opinion that investing in the lottery is TECHNICALLY a form of investing I don't care what the EV is. Because I know I am right. Do you even know what EV is? It takes into account possible winnings. What's better: $10 investment: 1 in 2 chance of winning an additional $10 $1 investment: 1 in 20,000,000 chance of winning an additional $1,000,000 The answer is the first one. Nobody with an ounce of common sense would choose the second one. You can't "invest" in the lottery. You can gamble on the lottery.
-Stringer
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Rank: Frosh
Groups: Member
Joined: 3/23/2008
Posts: 26
Location: Ontario
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Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially. It does if you win. lol And gambling IS a form of investing, you are INVESTING your money for a chance to win more, much like the stock market, except the risk/reward ratio is FAR different. It is one step up from giving your money away for free. None the less, is still is TECHNICALLY investing. And obviously if you are relying on winning the lottery to be your main source of retirement income, then yes, that is extremely stupid. But like I said, 1% of your net income is not that much, its 10 bucks if you bring home a grand a week net. Now would that $520.00/year do more for you in another type of investment? Yes it would for 99.999999999% of people...but for those with a horse shoe up their butt, there is no other investment around that is going to return you $10,000,000.00 on a $2.00 investment. And this is why it is not necessarily that bad of an investment in SMALL DOSES. *edit* Thanks for the tip on ETF's, I have not spent much time researching all of the different stock options yet, as I won't be in a position to seriously invest for at least a few years. I don't think you understand what investing is. Gambling is setup so that you have a negative EV. If you play 100,000 hands of BlackJack, you're likely going to lose. money. If you make 100,000 investments with positive EV, you're likely to win. It makes zero financial sense to gamble unless you have positive EV. Ok lets seperate normal gambling and the lottery first of all, it is ridiculus to associate an investment that pays 2x or 2.5x your wager to one that pays 5000000x your wager to be the same thing. Therefore, winning a hand of blackjack is not the same thing as winning 6/49. And I fully realize that the EV in playing the lottery is a negative, but that is not that big of an issue if you invest in the lottery sparingly. BECAUSE the potential payout more than makes up for the risk. I'm not going to budge on my opinion that investing in the lottery is TECHNICALLY a form of investing I don't care what the EV is. Because I know I am right. Do you even know what EV is? It takes into account possible winnings. What's better: $10 investment: 1 in 2 chance of winning an additional $10 $1 investment: 1 in 20,000,000 chance of winning an additional $1,000,000 The answer is the first one. Nobody with an ounce of common sense would choose the second one. You can't "invest" in the lottery. You can gamble on the lottery. Most investments are a gamble first of all. And your comparisons do nothing to discredit my theory that playing the lottery is a form of investing. You are investing a small amount of money for a chance to win a very large amount of money. Gambling/investing both work for that sentence in my opinion.
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Rank: Student Body President
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Joined: 3/5/2008
Posts: 1,396
Location: Wilfrid Laurier University
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tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially. It does if you win. lol And gambling IS a form of investing, you are INVESTING your money for a chance to win more, much like the stock market, except the risk/reward ratio is FAR different. It is one step up from giving your money away for free. None the less, is still is TECHNICALLY investing. And obviously if you are relying on winning the lottery to be your main source of retirement income, then yes, that is extremely stupid. But like I said, 1% of your net income is not that much, its 10 bucks if you bring home a grand a week net. Now would that $520.00/year do more for you in another type of investment? Yes it would for 99.999999999% of people...but for those with a horse shoe up their butt, there is no other investment around that is going to return you $10,000,000.00 on a $2.00 investment. And this is why it is not necessarily that bad of an investment in SMALL DOSES. *edit* Thanks for the tip on ETF's, I have not spent much time researching all of the different stock options yet, as I won't be in a position to seriously invest for at least a few years. I don't think you understand what investing is. Gambling is setup so that you have a negative EV. If you play 100,000 hands of BlackJack, you're likely going to lose. money. If you make 100,000 investments with positive EV, you're likely to win. It makes zero financial sense to gamble unless you have positive EV. Ok lets seperate normal gambling and the lottery first of all, it is ridiculus to associate an investment that pays 2x or 2.5x your wager to one that pays 5000000x your wager to be the same thing. Therefore, winning a hand of blackjack is not the same thing as winning 6/49. And I fully realize that the EV in playing the lottery is a negative, but that is not that big of an issue if you invest in the lottery sparingly. BECAUSE the potential payout more than makes up for the risk. I'm not going to budge on my opinion that investing in the lottery is TECHNICALLY a form of investing I don't care what the EV is. Because I know I am right. Do you even know what EV is? It takes into account possible winnings. What's better: $10 investment: 1 in 2 chance of winning an additional $10 $1 investment: 1 in 20,000,000 chance of winning an additional $1,000,000 The answer is the first one. Nobody with an ounce of common sense would choose the second one. You can't "invest" in the lottery. You can gamble on the lottery. Most investments are a gamble first of all. And your comparisons do nothing to discredit my theory that playing the lottery is a form of investing. You are investing a small amount of money for a chance to win a very large amount of money. Gambling/investing both work for that sentence in my opinion. An investment is money that is invested with an expectation of profit. With the lottery, you cannot expect profit. EV is negative, therefore you should expect a loss. That is not an investment. It is a gamble.
-Stringer
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Rank: Frosh
Groups: Member
Joined: 3/23/2008
Posts: 26
Location: Ontario
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Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:Stringer wrote:tjmontario wrote:That is a pretty good strategy to get rich, unless the stock markets crash the day before you retire...
I think diversification is the way to go, max out your RRSP's every year, max out that new $5000.00/year tax-free savings account coming out soon every year, invest 5-10% of your net income into mutual funds, heck, even invest 1% of your net income into the lottery.
The key is, don't put all your eggs into one basket.
Mutual funds are garbage. Why pay fees to a mutual fund manager when they can't consistently beat the market? And investing 1% of your income into the lottery? That is not investing, it's stupidity. Well most people don't want to take the time to research and pick their own stocks so mutual funds is a convenient way to potentially make more money than a standard savings account. And investing 1% of your income in the lottery is investing. If you don't think it is then you have no idea what investing means. Just because the odds of making any profit are extremely low, does not mean it isn't a form of investing. Tell a lottery winner that they were stupid to buy that 10 dollar ticket with a payout of 20 million, they will laugh in your face. If you treat it as purely an investment that has an extremely low probability of return with an extremely high possible return, and don't invest very much into it, then it isn't that bad at all, it's when people become addicted and spend thousands a year on it, then it becomes a problem. You can't win if you don't play. If you don't to research the market buy broad ETFs. The fees are much lower and the returns are generally better than mutual funds. Investing and gambling are far different. There is an element of risk in investing, but every good investment has an expected value that is greater than 0. Gambling, on the other hand, has an EV less than 0. Gambling does not make sense financially. It does if you win. lol And gambling IS a form of investing, you are INVESTING your money for a chance to win more, much like the stock market, except the risk/reward ratio is FAR different. It is one step up from giving your money away for free. None the less, is still is TECHNICALLY investing. And obviously if you are relying on winning the lottery to be your main source of retirement income, then yes, that is extremely stupid. But like I said, 1% of your net income is not that much, its 10 bucks if you bring home a grand a week net. Now would that $520.00/year do more for you in another type of investment? Yes it would for 99.999999999% of people...but for those with a horse shoe up their butt, there is no other investment around that is going to return you $10,000,000.00 on a $2.00 investment. And this is why it is not necessarily that bad of an investment in SMALL DOSES. *edit* Thanks for the tip on ETF's, I have not spent much time researching all of the different stock options yet, as I won't be in a position to seriously invest for at least a few years. I don't think you understand what investing is. Gambling is setup so that you have a negative EV. If you play 100,000 hands of BlackJack, you're likely going to lose. money. If you make 100,000 investments with positive EV, you're likely to win. It makes zero financial sense to gamble unless you have positive EV. Ok lets seperate normal gambling and the lottery first of all, it is ridiculus to associate an investment that pays 2x or 2.5x your wager to one that pays 5000000x your wager to be the same thing. Therefore, winning a hand of blackjack is not the same thing as winning 6/49. And I fully realize that the EV in playing the lottery is a negative, but that is not that big of an issue if you invest in the lottery sparingly. BECAUSE the potential payout more than makes up for the risk. I'm not going to budge on my opinion that investing in the lottery is TECHNICALLY a form of investing I don't care what the EV is. Because I know I am right. Do you even know what EV is? It takes into account possible winnings. What's better: $10 investment: 1 in 2 chance of winning an additional $10 $1 investment: 1 in 20,000,000 chance of winning an additional $1,000,000 The answer is the first one. Nobody with an ounce of common sense would choose the second one. You can't "invest" in the lottery. You can gamble on the lottery. Most investments are a gamble first of all. And your comparisons do nothing to discredit my theory that playing the lottery is a form of investing. You are investing a small amount of money for a chance to win a very large amount of money. Gambling/investing both work for that sentence in my opinion. An investment is money that is invested with an expectation of profit. With the lottery, you cannot expect profit. EV is negative, therefore you should expect a loss. That is not an investment. It is a gamble. Well I googled the definition of investing and for the most part you are right about it being only considered money that is invested with the expectation of profit, although some of the other definitions I read could be interpreted as gambling. It's a fine line between most investments and gambling in my opinion. I am still going to consider it investing for my own purposes, I have never heard of anyone going to treatment centers for investing addictions. So setting a limit of 1% is one way to play the lottery and not go crazy with it. But I can admit when I am wrong. Good debate though lol
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Rank: Senior Student
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Have you guys never heard of simply pressing "add reply" instead of quote?
"My parents live in Ohio; I live in the moment." -himym.
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Rank: Frosh
Groups: Member
Joined: 3/23/2008
Posts: 26
Location: Ontario
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Miss wrote:Have you guys never heard of simply pressing "add reply" instead of quote? No.
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Rank: Senior Student
Groups: Member
Joined: 3/5/2008
Posts: 153
Location: Toronto
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The real trick is penny stocks  Its like a smaller paying lottery with less astronomical odds. (And no don't take my post seriously and spawn it into a 40quote debate  )
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Rank: Frosh
Groups: Member
Joined: 3/23/2008
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Location: Ontario
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Shismo wrote:The real trick is penny stocks Its like a smaller paying lottery with less astronomical odds. (And no don't take my post seriously and spawn it into a 40quote debate ) Ya I have thought about buying some penny stocks.
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Rank: Valedictorian
Groups: Member
Joined: 3/7/2008
Posts: 520
Location: toronto
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How to get rich.
Make more money.
Don't spend it like an idiot.
Doesn't matter if you make 7 or 10% interest.
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Rank: Student Body President
Groups: Member
Joined: 3/5/2008
Posts: 1,396
Location: Wilfrid Laurier University
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eco wrote:How to get rich.
Make more money.
Don't spend it like an idiot.
Doesn't matter if you make 7 or 10% interest. Actually, it does matter...
-Stringer
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Rank: Frosh
Groups: Member
Joined: 4/22/2008
Posts: 3
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eco wrote:"If you put 50$ into a company and the company drops 30$, do not sell your shares. if you do you will be losing 30$."
Am I the worst at buisness, or are you the worst at math... aren't you losing 20? no you have 20 left! 50-30=20 30 is what is lost not whats left!
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Rank: Valedictorian
Groups: Member
Joined: 3/7/2008
Posts: 520
Location: toronto
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ROFL, I coulda sworn I read drops to 30. haha --> so i'm jsut the worst at reading...
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Rank: Senior Student
Groups: Member
Joined: 3/4/2008
Posts: 230
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One of my father's friends bought 1000 shares of AAPL (Apple) at $10 per share a couple of years ago. Now that same stock is worth $160 a piece.
I would rather stay away from stock market though. It's too much of a risk.
One of the best way to make money I have seen people doing is real estate. If you buy property in middle eastern countries, your investment is most likely going to multiply within 2 years or so. Property prices are always going to increase for the most part.
Queen's Commerce 2012
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Rank: Senior Student
Groups: Member
Joined: 3/12/2008
Posts: 123
Location: Owen Sound
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...um... I think I'll try my luck with saving money, and working hard to reach a high salary. I don't want to be rich, but I certainly want to be 'well off' (not have to worry all the time about money)
~~~Accepted offer to Ba Honors English @ Carleton Univerity, Ottawa ~~~
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Rank: Senior Student
Groups: Member
Joined: 4/20/2008
Posts: 107
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mutual funds are ripoffs. In bull markets, you get 6-12% annually, around 10% lower than returns from average stocks In bear, your fund actually bleeds money. all in all, your mutual fund never beats the market. The only thing that works for you is the power of compound interest. Sure you earn a mil or 2 by the time you retire, but the compounded rate of inflation (~1.5%/year) should also be taken into account. I'd say the most effective way of investing is to go directly to the source -- the stock markets. As long as you speculate and do your homework regularly, you can expect a mucher high return than mutual funds. They say that we have time as our greatest advantage, but personally, i don't want to wait until I retire before I see the fruit of my investments. tranquille wrote:Everything i say in this forum is true, i have got all my information from a real financial consultant.
Another way is to play your money in the stock markets. Same thing NEVER SELL! If you put 50$ into a company and the company drops 30$, do not sell your shares.
Possibly the worst advice I've heard. Financial consultants come in all shapes and forms. Some earn $30 000 base salary and buy their bread off of commissions while others are managers of successful hedge funds. Bottom line is this: just because he's "real" doesn't mean he's good, or sound. Take from the examples of Nortel, Enron, and the recent Bear & Stearns as reminders to the consequences of buy&hold. Extremeties aside, normal stock share prices do not rise at an exponential rate indefinitely (if at all, unless it's BirkHath). Hats off to you if you can spot successful companies like Apple when they are $10 a piece, and many HAVE made their fortunes investing in potential blue chips (Buffet should come to mind). However, buying and holding without analyzing your portfolio is downright ignorant. as Kenny Rogers once said, "you got to know when to hold them, and know when to fold."
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