If You Could Lose It, It’s Gambling

Can you think of the safest investment and the most risk free investment in the world and I will show you how gambling it is? In this life there is no risk free investment, but the difference is the level of risk. Let’s start by looking at low risk investments like putting your money in a fixed deposit bank account. The interest is expected to be 10% at maximum per annum, and it’s a bank, you can always go to the bank and request for withdrawal and get your money bank. Safe right? Even if the bank was attacked by burglars or armed robbers, it doesn’t affect your money.

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So what could the possible risk of having your money in the bank invested in a fixed deposit be. Well, there is something like banks going bankrupt, and also becoming illiquid, when they don’t have enough cash for withdrawal, they could file for bankruptcy and close down, then your money gets stuck. Most times people lose their money and never get their money back, but the probability of this happening is very low, it’s not every day you hear that a bank has gone bankrupt, but it still falls under the category of, if you can lose it, it’s gambling.

If you decide to buy stocks or shares, switching to other forms of investment, they can also lose their value over time. We have seen lots of stocks and shares lose their value, for instance, Warren Buffet’s networth reduce by 90% after the value of his stock assets reduced, so did he gamble?

If you invest in farming anything can happen, fire, flood, diseases, anything can happen that might lead to the loss of your crops, so it still falls under, if you could lose it, it’s gambling category.