For those who have done some research, are following a thesis, etc., then they are definitely placing a “bet” but only because they believe they have a clear edge. They may end up being wrong (due to chance, stupidity, or both), but the outcome is not random. Not gambling.

“Let’s see, I’m an investor who plans to invest for 30 or 40 years. So I want to own shares in the best, the strongest, the most profitable and durable companies in the world. I plant to consistently add new money to my investments. That, coupled with the power of compounding returns, should grow my wealth astronomically over the long term.

“But, just to be safe, I think I should also make sure I own all the average companies, too, the moderately profitable ones that just limp along year after year, And cyclicals. I better own those 100% of the time. And to be extra, extra safe, I better make sure I also own the crappiest companies, too. I don’t care how debt-laden, unprofitable, cash-hemmoraging they are, I want to own them all just to be on the safe side.

“Now, if I could just find the right investment vehicle that would give me all that. I know! I’ll invest in a Vanguard index fund. Since the fees are so low, I’m bound to be super rich in no time at all!”

Bogle looked reasonably smart during the last great bull market (1982-1999), but buy and hold index fund investing has been disastrous since then.

I agree that trading is essentially gambling and that most “investors” are actually traders (e.g. investing in an actively managed mutual funds where the fund manager trades/gambles on your behalf). But true investing–researching, indentifying, and owning for the long term shares in great businesses–has always worked and continues to work today.

For me, Bogle’s greatest flaw is his prejudice that most investors are too stupid to be able to identify a great, consistently profitable business and to be able to purchase shares when those shares are reasonably priced.