Investing for the Long-Term: Gerber Warns Against Gambling and Promotes Long-Term Holdings

Ross Gerber, a prominent investment adviser, warns against gambling as a means to build wealth, advocating for long-term investing and holding onto great companies. He criticizes Robinhood's push into sports outcome "event contracts," calling it absurd and a regulatory end run. Gerber emphasizes the distinction between investing and speculation, urging clients to avoid margin and concentrate on long-term holdings.

Prominent investment adviser Ross Gerber has reiterated his stance against gambling as a means to build wealth, instead advocating for long-term investing and holding onto great companies. In a recent post on X, Gerber stated, "Gambling is not a way to build wealth. Investing for the long term, buying great companies and holding them, works. It just does" [1].

Gerber's comments follow his criticism of Robinhood Markets Inc.'s push into sports outcome "event contracts." He described the move as "absurd" and a regulatory end run, arguing that it does not fall under state gambling guidelines [1]. Robinhood and its partner Kalshi describe these products as federally regulated prediction markets, not traditional sports betting, and claim they comply with federal law. However, Massachusetts' top securities regulator has opened a probe, and gaming authorities in Nevada and New Jersey have challenged sports contracts in court [1].

Gerber has previously emphasized the distinction between investing and speculation, urging clients to avoid margin and concentrate on long-term holdings. In March 2024, after a trader nearly wiped out a margin account during Tesla's 2022 swings, he cautioned, "Crazy risk-taking makes no sense. Gambling is not investing" [1].

The debate lands as prediction markets grow on mainstream platforms and retail participation remains elevated. Robinhood argues that prediction markets provide insight and "societal value" while complying with federal law. The firm added NFL and college football markets this month [1].

Meanwhile, the crypto trading landscape is shifting. Hyperliquid, a decentralized derivatives exchange, surpassed Robinhood in July trading volume, recording $330.8 billion compared to Robinhood's $237.8 billion across all products [2]. This marks a significant expansion from previous months and reflects growing user preference for faster execution, lower fees, and direct liquidity access.

In the altcoin market, Chainlink (LINK), Solana (SOL), and Bonk (BONK) are showing strong signs of growth. Chainlink's LINK surged 50% with a new partnership and $93 billion secured, while Solana's SOL broke $200 as ETF demand grows. Bonk gained institutional backing with a $25 million stake, signaling potential breakout targets between $0.00003 and $0.00005 by mid-2025 [3].

References:
[1] https://www.benzinga.com/news/education/25/08/47323641/ross-gerber-warns-gambling-not-a-way-to-build-wealth-heres-how-you-do-it-instead
[2] https://www.ainvest.com/news/hyperliquid-outpaces-robinhood-39-1-july-trading-volume-2508/
[3] https://cryptonewsland.com/altcoins-set-to-outperform/