Reply #19: That assumes the game is zero sum. [View All]

[Statistical]

If you and I bet on roll of dice whoever rolls higher wins that is zero sum game.

However in the equities market the underlying companies make profits and those profits are returned to shareholders. Thus the overall "game" is a positive sum game. Those profits add up to trillions of dollars a year. That is money flowing into the "game".

Now some make make more than others but the statistical "expectation" is a positive return over the long run. Looking at 20 year period there has NEVER not once (not even if you bought day before crash in 1929) been a 20 year period where overall market didn't have positive return.

It is possible (and probable) for both buyer and seller to make money over the long run.