Smart Money Moves: Why Long-Term Investing Beats Gambling

Investing expert Ross Gerber recently took to social media to remind everyone that gambling won't make you rich. He's been saying this for a while, and his message is clear: if you want to build wealth, focus on long-term investing. Gerber isn't just talking about any kind of investing, though. He's talking about buying into great companies and holding onto them for the long haul. Gerber's comments come after he criticized Robinhood for jumping into sports outcome "event contracts. " He thinks it's ridiculous that people can bet on sports through a regulated financial firm without it being considered gambling. Robinhood, however, sees these contracts as prediction markets, not traditional sports betting. They argue that these markets offer valuable insights and societal benefits while following federal laws. The debate isn't just about words, though. There are real regulatory battles happening. Massachusetts' top securities regulator started a probe in March, and gaming authorities in Nevada and New Jersey have challenged these sports contracts in court. Gerber has been clear about the difference between investing and speculation. He's warned against risky behavior, like the trader who nearly lost everything during Tesla's ups and downs in 2022. His advice? Stay away from margin accounts and focus on long-term holdings instead of short-term bets. This discussion is happening as prediction markets become more popular on mainstream platforms and more people get involved in investing. Robinhood says their event contracts are different because prices are set by market participants, not by a sportsbook's odds. Users can also trade in and out before the outcomes are settled.