Comments by "Zach B" (@zachb1706) on "Hedging Explained - The Insurance of Investing" video.

  1. The casino analogy implies three things: 1) Your investments don't have any tangible product or object behind them 2) You are working against the system 3) Choosing investments is nothing more than picking a number Both are false. When you buy things on the stock market, you are purchasing a piece of a company. The investment isn't like a number on a roulette wheel. The stock market has been extremely favourable to investors, sporting huge returns. Average returns on the stock market have been around 10%/yr for the past century. Choosing an investment is different from a guess. You will look at the underlying asset, it's fundamentals, it's competition and it's future prospects. It's the opposite of a random guess like you would make in a casino.
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