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ARE YOU INVESTING OR GAMBLING?

DIFFERENCE BETWEEN INVESTING AND GAMBLING

Many persons confuse gambling with investment. To them, both involve risks and can yield financial returns. That is why many claim that the lottery they play and their Sportsbet is their way of investing. One day, the goddess of luck will smile on them and they would get the lucky number and become millionaires. Sadly, statistics show that this hardly happens. In a survey conducted in 2019 in Nigeria by NOIPolls, it was discovered that only 3% of gamblers make daily profits. 60% make profits a few times in a month and 8% never make a profit.

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Given this fact, what then differentiates gambling from investment and why should you choose to invest?

1. Investing gives you ownership of an asset that has the potential to increase in value over time. This could come in the form of stock dividends, bond interest, income from rent, and many more. Gambling, on the other hand, does not. Since it involves betting on the outcome of an event, there is no ownership of any asset and no interest or dividends to receive.

2. In investment, parent companies work on improving their stocks because they know that the better they fare on the stock market, the more the number of investors they attract. They, therefore, have the wellbeing of their investors at heart. Gambling/betting companies, on the other hand, thrive on the losses of their customers. They give them the façade of the possibility of winning and the thrill that comes with it while in reality, their survival depends on how well these customers can be extorted.

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3. In investment, capital is guaranteed. The only risk is that currency inflation, taxation and other economic challenges occurring at the time that the principal is returned can reduce the monetary value of the investment. The chances of this occurring are however slim and are in no way similar to gambling wherein principal is not guaranteed.

4. Gambling is short-lived. Once the game is over, the result is known. Investment however can continually yield profit on a long-term basis.

If you are still in doubt, reflect on this quote by Benjamin Graham that says, “An investment operation is one which upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative,” and let it guide your investment choices. You can also contact the Secure Capital team for further assistance.

To get started on your investment journey, visit www.securecapitallimited.com, choose your preferred package, and start Investing today.

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