On gambling

Getting ready to talk to a client today who recently got his bonus for the year. A month ago, his company had a liquidity event -- an exit -- that is probably the most important factor for him in his financial life, aside from his ability to earn money on a month in month out basis. But he would really like to retire or semi-retire in the next few years, so the earned income will largely go away. But the dollar value of the exit isn't clear to him yet, for complex reasons. I tried to refocus the conversation to the long-term by focusing on the bigger question, but he insists that we talk about the investing of the smaller chunk of money.

Effectively, he wants to talk about "short-term investing". But there is really no short-term investing, there is only gambling. Trying to focus on short term things that will make money is a huge attention drain. The only other potential benefit is that it offers one the ability to learn a lesson if one fails, if only one can listen.

Yesterday evening I Zoomed with a couple of college friends, one of whom is a medical specialist who lives in the Northeast and makes a lot of money. He also plays a lot of poker. He said he's been playing every night of late, and that he made money for a few months but then the last couple of months have been less good. Later in the conversation, he said he had made around $20k the last year, which is nothing for him financially. The poker is just a hobby, it allows him to unwind at night.

But it also takes away time that he could be exercising. He's not obese, but he ain't all that cut. So, again, the short term detracts and distracts from the long term. 

He has, admittedly, also met some interesting folks while gambling and tells some good stories. So I guess it's social too.