Neither of them laughed.
“Too quickly?” I joked. “However I imply it. And I believe we must always focus on the distinction. I might do that even when there have been no such factor as sports activities betting.”
“Yeah, proper,” Oliver mumbled.
Is investing like playing?
“Oliver,” I stated earnestly, “I’m not taking an inexpensive shot. Really, some folks suppose investing is playing. It’s by no means, and it’s essential to grasp the distinction.”
“Okay, high quality,” he stated curtly.
I carried on. “Typically, after we speak about investing, we speak about this factor known as the danger return trade-off. It’s an funding precept that principally says, the extra danger you’re taking, the extra potential return you can get. The return is the cash you make, or moderately the cash you can make.”
“Like slot machines,” Oliver stated. “Should you play the penny slots, you don’t lose a lot cash, however you’re not going to achieve a lot cash both. Should you play the $5 slots, you can lose rather more, however achieve rather more.”
I grimaced a bit on the playing reference, given the circumstances, however he had a degree. “That’s an amazing level. However once more, I’m cautious to not evaluate playing to investing.”