Is investing in the stock market gambling?

[Suzie]

Doesn't the Church accept stocks and bonds as donations?

[mrmarklin]

I used to play... long time ago... black jack and mahjong. Before I came to America even. It's a popular thing for engineering students to try to beat the house. If you play "forever" with unlimited amount of cash, of course, money circulates. But, nobody plays forever. You play until your capital runs out or your time runs out. Professional gamblers go broke because when they are on the losing streak, they expect to win later (which, they eventually will) so they throw their houses for capital to keep the game rolling.

But, my case in point is ONE GAME - or in poker, one hand. Only 1 person can win. The others lose. Therefore, they spent their money without receiving any value for it other than the CHANCE of winning money.

One hand of course is random. But pros play over a lifetime, and that is the long run.

I don't really equate Blackjack with poker, although one can win if one is allowed to card count. That's not luck, but simple mathematics. Otherwise with perfect play, the odds are on the House's side.

Actually, even lotteries can be investments. The megamillions here in CA is currently $240MM. Since the odds are 40MM to 1 against, it would make sense to invest up to $6, since that's ($6) a breakeven proposition. At less than $6, the odds are actually in the investor's favor. In fact it would theoretically make sense to buy every possible number, with an expected profit of $200MM. I'll let one of you smarties out there figure out why this is not happening.

Don't know anything about Mah Jong.

[bert10]

The Wealth of the world is....Not my problem. Still - Stocks and Bonds can be converted into money and money can be converted into land, cattle and malls.

Things in themselves are not evil it is what we do with them and how they are used that count. Money is just not used to enslave men...it is also used to put a value on men.

What is saving the nations of the world up until now from great wrath..is their ignorance that they are living in and building up Babylon in their wickedness.

Prosperity is directly related to the observance of the Sabbath. As the majority of the people in the nations do not remember the law and GOD on the Sabbath...God has begun to remove the prosperity of nations.

---------------------------

Concerning Australia..it is the first time I have heard used...the words "Biblical in proportion" when referring to a disaster. I would say get used to hearing such things.

Disasters like these will move many nations to the brink of bankruptcies.

bert10

Doesn't the Church accept stocks and bonds as donations?

Edited January 5, 2011 by bert10

[Guest]

One hand of course is random. But pros play over a lifetime, and that is the long run.

I don't really equate Blackjack with poker, although one can win if one is allowed to card count. That's not luck, but simple mathematics. Otherwise with perfect play, the odds are on the House's side.

Actually, even lotteries can be investments. The megamillions here in CA is currently $240MM. Since the odds are 40MM to 1 against, it would make sense to invest up to $6, since that's ($6) a breakeven proposition. At less than $6, the odds are actually in the investor's favor. In fact it would theoretically make sense to buy every possible number, with an expected profit of $200MM. I'll let one of you smarties out there figure out why this is not happening.

Don't know anything about Mah Jong.

And that's my point exactly MrMarklin. It's NOT investing. It is GAMBLING. You're not buying a value - you are buying a chance without value beyond the chance.

Mahjong is just another card game that one can gain a skill at - except it doesn't use the regular card faces - it uses chinese face cards.

Edited January 5, 2011 by anatess

[MarginOfError]

One hand of course is random. But pros play over a lifetime, and that is the long run.

I don't really equate Blackjack with poker, although one can win if one is allowed to card count. That's not luck, but simple mathematics. Otherwise with perfect play, the odds are on the House's side.

Actually, even lotteries can be investments. The megamillions here in CA is currently $240MM. Since the odds are 40MM to 1 against, it would make sense to invest up to $6, since that's ($6) a breakeven proposition. At less than $6, the odds are actually in the investor's favor. In fact it would theoretically make sense to buy every possible number, with an expected profit of $200MM. I'll let one of you smarties out there figure out why this is not happening.

Don't know anything about Mah Jong.

Something's wrong with the odds you give. 40MM to 1 against winning the jack pot is way too small. There are over 21 billion possible combinations in the mega millions.

[Guest]

Something's wrong with the odds you give. 40MM to 1 against winning the jack pot is way too small. There are over 21 billion possible combinations in the mega millions.

It could be 1 in 4 chance... it would still be GAMBLING.

[rameumptom]

The stock market is designed for investing, but some people use it for gambling. There are very risky stocks out there, that almost equate to gambling sometimes.

But the stock market is not necessarily evil. D&C 82 gives us the commandment to be friends with Mammon (riches) or Babylon, so that we are not destroyed.

Joseph Smith sold shares in the Kirtland Savings and Trust Society, as well as the Nauvoo House. While the Savings/Bank crashed, it was still not considered gambling, but an investment that failed when many other banks failed in the same period. Those who invested in Nauvoo House did not get their money back, as the saints fled west, leaving it behind.

Brigham Young sold shares in ZCMI and other Deseret holdings. So clearly we can see that investing in the market is not against Church policy. That said, it is important to do so wisely. I advise people to spend a year playing the stock market game first, before putting any real money into the actual market. In this way, you learn from your mistakes without losing real money.

You can Google "stock market game" and get several to play, such as this one at Market Watch: Virtual Stock Exchange - Home

Second: diversify. If you don't diversify, you will be gambling all your money that the one stock will continue doing well year after year. Odds are that might not happen.