THAT WAS THE WEEK THAT WAS: 14TH - 18TH JANUARY 2008
From top share author MALCOLM STACEY
Hello Crazy Gang,
Another annoying bloke came up to me last week and accused me of being nothing but a gambler.
But share shifting is not gambling. Not unless you are incautious enough to put all your gelt into just a few firms, that is. It is gambling in my view to risk all you dough in one or two companies, however attractive they may seem just now. What if fraud were to strike at the top. The share value could be all but wiped out.
And what if there was a major profit alert. Once again, all your money might be at risk. No, that sort of thing is definitely gambling.
But if you spread your loot among many companies, you are investing, not gambling. And investment makes the world go round.
I've used the following illustration before, but it's important enough to repeat. You cannot ring up your bookies and say "Black Beauty is not doing so well in this race, so can I have most of my money back? But that's what we do after investing a share which starts to lose.
Share shifting is not an all or nothing thingy. We are usually given a second chance to come out of a share without too much damage being caused by its decay. Indeed, we may get hundreds of chances to jump ship before the end.
I could go on all day on why share dealing is not gambling. But I leave you with this thought. If you invest in a company you help someone to keep a job, or even improve his or her salary and condtions. You boost the UK economy. And if you invest in a drugs company you may help to find a cure for cancer.
No gang, share shifting is not gambling. Have a good weekend and God bless!
UKSA is the leading independent organisation for private shareholders in the United Kingdom. It campaigns to protect your rights as a shareholder and runs educational activities for members.
