Is stock market gambling?

Have you invested and lost money ? that made you think Is stock market gambling?

If you lost money in the stock market, you may strongly believe that the stock market is gambling. You may also be someone who believes someone else story of investment as gambling. My Dad strongly believed that it is not an investment avenue, just because he had seen his friends lose money.

If you are running your business, will it be called as gambling or speculation? The stock market is just an option to own a piece of business.

What you can do with Stock investments?

If you are owning a few shares then you are also becoming an owner of the company. You should find companies that look at the shareholders as part of their company. “Guru” movie was said as almost loosely based on Dhirubhai Ambani’s story of Reliance. I loved the performance of everyone in that movie. Towards the end of the movie, he will become ill and hold on everything for the last day of the hearing.

One ardent lover of Guru, will come to the court and say that “He had made his daughter’s marriage just with the investment in his company shares”.

Last month I was in one of the fund house meetings and one of the old distributors said that his little investments in equity mutual fund had taken care of their daughter’s marriage completely. He was a proud father.

Becoming Proud owners!

Owning a share is like owning the company. One of the best ways to make more money is entrepreneurship. The great difficulty is succeeding in your passion of starting something new. It can be money, tools needed to start the company and other reasons as well.

On the other side, if you can find companies that are doing exceedingly well, you can be part of their business simply by buying a few shares in them. Though you are a minority shareholder and you won’t have any special rights, you can get the feeling of owning up part of the company.
Do you think it is easy to open a company like Maruti or Coalgate ?

It is easy to buy these company shares and be proud partners with them.

Why the Stock market is not Gambling?

So you are proud owners of big company shares. These companies declare quarterly results. Based on these quarterly results, crude oil, government regulations, change in interest rates by RBI, local monsoon, etc the individual stocks will rise or fall.

In the long run, the stock market has always risen. In the short run, there will always be short term movements which may cause heartbreaks or burns. Focus on long term gains and believe in the company you are owning up for better returns in the future. After all, now it is your company and you owned up after due analysis of it.

As observed on 15 Feb, 2023

Last 6 months data of Sensex in money control website where it has many ups and downs.

But in the last 5 year data of Sensex, the trend confirms it is increasing and has moved from 36000 levels to 60000+ levels.


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